[THE INVESTOR] Hanwha Techwin has started to create synergy with other defense affiliates of Hanwha Group, a year after the firm was merged into Korea’s 10th largest family-controlled conglomerate, a local brokerage firm said.
“Defense business was the matrix of Hanwha Group,” said Kim Ji-san, analyst at Kiwoon Securities while maintaining the price target of 56,000 won and a rating of “overweight.”
He said Hanwha Techwin will enjoy more positive effects following its merger into the group which has other defense-specialized units such as Hanwha Thales and Hanwha Defense under its wing,
K9 self-propelled gun made by Hanwha Techwin.
In 2015, Hanwha Group acquired Samsung Techwin and Samsung Thales for 823.2 billion won.
The analyst said that the company can benefit from upcoming projects secured by the sister companies.
In April, Hanwha Tales was selected as a preferred bidder to supply a multifunctional phased array radar for the Korean Fighter Experimental program.
Hanwha Techwin plans to expand the export of its self-propelled artillery to Poland from the third quarter of this year and is expected to sign a new deal with India.
“Hanwha Techwin will start making profits in the second quarter by posting an operating profit of 41.1 billion won,” Kim said.
Shares in Hanwha Techwin shed 0.31 percent to close at 47,750 won on June 21.
But the stock price has jumped as much as 60 percent during the past year since June 29 in 2015 when the company changed its named from Samsung Techwin to Hanwha Techwin, compared with a 5.2 percent loss by the broader KOSPI.
By Park Han-na (firstname.lastname@example.org)