Hanwha Group has risen to 6th place in market capitalization among domestic large corporate groups. The strong performance of shipbuilding and defense stocks has driven the increase in the market capitalization of Hanwha Group this year.
According to the Korea Exchange on the 12th, the total market capitalization of Hanwha Group’s 12 listed companies (excluding preferred shares) based on the closing price that day is 66.658 trillion won. This represents a 56.2% increase (23.975 trillion won) compared to 42.683 trillion won at the end of last year. It is the largest increase among large corporate groups.
Hanwha Group's market capitalization ranking has risen from 8th place at the end of last year to 6th, surpassing POSCO Group and Celltrion Group. Samsung Group ranks 1st with 538.761 trillion won, ▲ SK Group 227.984 trillion won ▲ LG Group 142.340 trillion won ▲ Hyundai Motor Group 131.740 trillion won ▲ HD Hyundai Group 83.396 trillion won.
Among the listed companies of Hanwha Group, the one with the largest increase in market capitalization is Hanwha Ocean. The market capitalization of Hanwha Ocean increased nearly twofold from 11.4445 trillion won at the end of last year to 22.215 trillion won based on the closing price that day. Hanwha Ocean's stock traded at 74,600 won during the day, setting a new all-time high.
Expectations for cooperation in the shipbuilding industry after the second term of U.S. President Donald Trump have boosted Hanwha Ocean's stock price. There are prevailing forecasts that Hanwha Ocean will not only achieve results in the special ship sector this year but also in the merchant marine and offshore sectors.
O Ji-hoon, a researcher at IBK Securities, noted, "Hanwha Ocean is working to advance from initially providing five U.S. military support vessels and maintenance, repair, and overhaul (MRO) services to building new vessels, and expects an increase in orders in the merchant marine and offshore sectors."
Hanwha Aerospace also saw its market capitalization increase from 14.8822 trillion won at the end of last year to 23.7022 trillion won based on the closing price that day, a 59.3% increase (8.82 trillion won). Hanwha Aerospace's stock price surged to 524,000 won during the day, setting a new all-time high.
Hanwha Aerospace recorded high profitability based on overseas defense exports, stimulating investor sentiment. The operating profit margin of Hanwha Aerospace in the fourth quarter of last year reached 18.5%.
Securities firms believe that Hanwha Aerospace will continue its defense exports this year and have raised their target prices. Target prices include 760,000 won from Kyobo Securities, 710,000 won from MERITZ Securities, 680,000 won from DB Financial Investment, 650,000 won from Korea Investment & Securities and Kiwoom Securities, and 640,000 won from Samsung Securities.
An Yu-dong, a researcher at Kyobo Securities, stated, "The existing export profit margin of Hanwha Aerospace has jumped from 15% to over 30%, which has become the 'new normal' and significantly adjusted the profit outlook upward for this year."
In addition, based on the closing price that day compared to the end of last year, the market capitalizations increased significantly for ▲ Hanwha System 1.927 trillion won (45.1%) ▲ Hanwha Solutions 847.4 billion won (30.6%) ▲ Hanwha Vision 515 billion won (32.3%) ▲ Hanwha Engine 426.4 billion won.
As the share prices of group companies showed strong performance, the holding company Hanwha also saw its market capitalization soar. Hanwha's market capitalization increased from 2.2164 trillion won at the end of last year to 2.8259 trillion won based on the closing price that day, a 40% (805.8 billion won) increase.
Of course, not all group companies have benefited. Hanwha REIT and HANWHA GENERAL INSURANCE have seen their market capitalizations decrease by 1.1% (7.2 billion won) and 1.5% (7 billion won), respectively, this year.