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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Hanwha Techwin to rebound in Q2’

  • PUBLISHED :April 13, 2017 - 13:58
  • UPDATED :April 13, 2017 - 13:58
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[THE INVESTORHanwha Techwin slowed down in the first quarter but will rebound, said NH Investment and Securities on April 13, maintaining a “buy” recommendation and 59,000 won (US$52.28) target price.




Starting from this year, the revenue from self-propelled artillery is recognized at the time of delivery and not after manufacturing, which lowered revenue in the first quarter bringing down profitability, said analyst Yu Jae-hun. 

Its revenue rose 47.4 percent to 974.5 billion won while operating profit fell by 46 percent to 17 billion won on-year, estimated the analyst. 

Delivery of weapons usually takes place in the second and third quarters when actual revenue will be reflected. Its subsidiary Hanwha Defense’s revenue will dip temporarily as the armored vehicle contract has been terminated, but it will stabilize due to expansion of the missile launching pad production, noted Yu.

The export of self-propelled artilleries to Poland and Finland will be reflected from the third quarter, and more orders will come from overseas, forecast the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)

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