DAISHIN SECURITIES forecasted on the 27th that investments could be made in a timely manner amid an unavoidable capital expenditure situation for Hanwha Aerospace to secure market dominance. This is an evaluation of Hanwha Aerospace's decision for a large-scale paid-in capital increase. Accordingly, the investment recommendation has been rated as 'buy,' and the target stock price has been revised upward by 31% from the previous 580,000 won to 760,000 won.
Lee Tae-hwan, a researcher at DAISHIN SECURITIES, noted, "As European military spending expands and the market entry barriers increase, many competitors see the expansion of the special vessel market due to the U.S. Navy's dominance as an opportunity." He added, "Based on the amount of this capital increase, investments that were favorably evaluated in the market can be implemented in a timely manner, making it a suitable buying opportunity for long-term investors."
Earlier, Hanwha Aerospace announced a paid-in capital increase of 3.6 trillion won on the 20th. At that time, shares were trading in the mid-700,000 won range, but after the announcement of the capital increase, they fell and have been hovering in the mid-600,000 won range.
This researcher analyzed, "Considering cash outflows such as the acquisition of Hanwha Ocean equity and investments in subsidiary (HAA No.1), additional liquidity is deemed necessary," and added, "Although repayment based on operating cash flow after additional borrowing could have been possible, concerns about the burden of repeating funding at regular intervals, the deterioration of financial structure, and missing mid-term growth opportunities might have influenced the decision for the capital increase."
However, he explained, "Although the situation appears similar to Hanwha System's capital increase in 2021, the low equity of major shareholders and related parties means that the dilution shock on the market is higher than it was then."