Hanwha Aerospace (012450) is showing a decline in the 3% range during the trading session due to a downward revision of its target price by securities firms. However, a 'Buy' rating is being maintained driven by expectations for mid- to long-term growth, including the expansion of overseas orders and the localization of aviation engines.

Daishin Securities Slightly Lowers Target Price to 1.72 Million Won…"Expected to Expand Defense Market Share" As of the morning of the 9th, Hanwha Aerospace is trading at 1,002,000 won, down 39,000 won (3.75%) from the previous trading day, defending the 1 million won level.

In a recent report, Daishin Securities lowered Hanwha Aerospace's target price from 1.75 million won to 1.72 million won. This adjustment reflects a change in the valuation of its consolidated subsidiaries. However, citing the company's aggressive overseas localization strategy as a basis for expanding its market share in the global defense industry, the firm maintained its existing investment rating of 'Buy.'

Q2 Operating Profit Projected at 944 Billion Won…Driven by Poland's Chunmoo and Australia and Egypt K9 Sales Daishin Securities projected that Hanwha Aerospace's consolidated operating profit for the second quarter of this year will reach 944 billion won, a 23.6% increase compared to the same period last year. Although this falls slightly short of the market consensus of approximately 1 trillion won, the firm analyzed that overseas defense exports acted as the key driver for the earnings improvement.

In particular, while there was no revenue recognition for Poland in the first quarter, the second quarter is expected to reflect revenue from Poland's Chunmoo multiple launch rocket systems, in addition to sales of K9 self-propelled howitzers to Australia and Egypt, sustaining the growth momentum in the defense sector.

Aviation Engine Localization as Long-Term Growth Driver…Short-Term Variables Include Volatility The market is closely watching Hanwha Aerospace as it strengthens its competitiveness not only in defense but also in the aerospace sector. Aviation engines, which determine the performance of fighter jets and aircraft, require advanced technology and large-scale research and development (R&D). Based on its engine manufacturing and Maintenance, Repair, and Overhaul (MRO) capabilities, Hanwha Aerospace is pursuing the acquisition of proprietary technology and the expansion of localization. It is evaluated as a key company that will lead technological self-reliance in the domestic aerospace industry.

Expectations are also rising that additional orders will be secured across various sectors, including K9 self-propelled howitzers, Chunmoo, and aviation engines, driven by the government's policies to strengthen defense competitiveness and the demand for defense buildups in Europe and the Middle East. However, in the short term, profit-taking following the recent surge in stock price, global stock market volatility, exchange rates, and overseas order schedules are cited as variables that could influence the stock's trajectory.

[This article was written with the assistance of AI, and the content is based on publicly available data and market information. Some information may change over time, so please be sure to verify official materials such as Korea Exchange disclosures and corporate announcements before making investment decisions. This article is not intended to recommend the purchase or sale of any specific stock or to solicit investment, and the final judgment and responsibility for investments lie with the reader.]