April 27, 2024
Stocks & Bonds
[EQUITIES] ‘Hanwha Techwin to miss Q4 market estimates’
[THE INVESTOR] Hanwha Techwin will widely miss market expectations with a 32.4 billion won (US$27.53 million) operating profit in the fourth quarter last year, estimated Korea Investment and Securities on Jan. 19.
Compressor and chip mounter divisions, which logged a combined 15 billion won loss in the third quarter, remained in the red, said analyst Cho Cheol-heui.
“The first half is the peak season for these products and it is hard for them to post increased revenue, and there are no signs of solid recovery.”
Hanwha Techwin’s operating profit on a consolidated basis this year will hike 26 percent from the previous year but it actually is on the level if the 2016 incorporation of Hanwha Defense and Hanwha System into subsidiaries is taken out of the equation, said the analyst.
“The stock price will stand still unless it wins a large-scale order, from India for example,” said Cho. But considering that it will benefit the most in the long term from the country’s policy to expand its defense industry, the analyst maintained a “buy” recommendation and 62,000 won target price.
By Hwang You-mee (glamazon@heraldcorp.com)
Compressor and chip mounter divisions, which logged a combined 15 billion won loss in the third quarter, remained in the red, said analyst Cho Cheol-heui.
“The first half is the peak season for these products and it is hard for them to post increased revenue, and there are no signs of solid recovery.”
Hanwha Techwin’s operating profit on a consolidated basis this year will hike 26 percent from the previous year but it actually is on the level if the 2016 incorporation of Hanwha Defense and Hanwha System into subsidiaries is taken out of the equation, said the analyst.
“The stock price will stand still unless it wins a large-scale order, from India for example,” said Cho. But considering that it will benefit the most in the long term from the country’s policy to expand its defense industry, the analyst maintained a “buy” recommendation and 62,000 won target price.
By Hwang You-mee (glamazon@heraldcorp.com)
