By Kwanwoo Jun
Hanwha Aerospace’s shares jumped to a record high Monday on market hopes for solid second-quarter earnings amid brisk contract wins.
Shares of the South Korean defense company rose as much as 15% to 134,300 won ($105.23)–the highest level since their listing in 1987–in morning trade. The shares are on course for their biggest daily percentage gain in 11 months.
The benchmark Kospi was last 0.7% lower.
IBK Securities analyst Lee Sang-hyun said in a research note Monday that he is upbeat on the maker of aircraft engines, artillery, missiles, ammunition and other defense products, citing the company’s brisk defense contract wins and a recent recovery in the aviation industry.
Hanwha is projected to secure new contracts worth at least KRW10.2 trillion for 2023, the IBK analyst said while noting that annual contract value could increase further as the company is seeking to supply more K9 howitzers in Europe and new armored vehicles in Australia.
Lee said he expects Hanwha’s second-quarter operating profit to jump 49% to KRW129.9 billion from a year earlier, in line with market expectations, and forecasts 37% revenue growth for the June quarter.
Write to Kwanwoo Jun at [email protected]
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