[THE INVESTOR] Hanwha will be bolstered by the strong performance of its subsidiaries and defense division’s increased value of operations, said Shinhan Financial Investment on March 20, raising the target price to 48,000 won (US$42.88) from 47,000 won.
It will complete taking over the navigation system business from its subsidiary Hanwha Defense, pushing the value of its defense division’s operations 2.1 percent up, said analyst Im Heui-yeon.
“The acquisition will not directly affect the earnings on a consolidated basis, but is positive in that it will lay the basis for the company to position itself as a surgical strike specialist.”
Major subsidiaries such as Hanwha Engineering and Construction and Hanwha Chemical are showing decent earnings, noted the analyst. Hanwha Chemical will post record earnings on the back of the price hike of its major products and Hanwha E&C will see steady upturn in new orders both at home and abroad, forecast Im.
By Hwang You-mee (email@example.com)