[THE INVESTOR] Hanwha’s profits will improve as earnings of subsidiary Hanwha Engineering and Construction returns to normal, said Mirae Asset Daewoo on Dec. 14, upgrading its recommendation to a “buy” from a “hold” and suggesting 56,000 won (US$51.56) target price.
Its wholly owned construction subsidiary’s revenue and operating profit will reach 3.6 trillion won and 207.5 billion won, respectively, boosted by 41.6 percent hike in revenue, said analyst Jeong Dae-ro.
Operating profit from its own business will come in at 295.5 billion won next year as ammunition, defense and machinery sectors remain strong, noted the analyst.
Considering that uncertainties of the construction arm’s overseas projects have cleared and there is likelihood of normalization of earnings next year, its stock price is fairly undervalued, he added.
By Hwang You-mee (firstname.lastname@example.org)