Financials Hanwha Systems Co., Ltd.

Equities

A272210

KR7272210006

Aerospace & Defense

End-of-day quote Korea S.E. Other stock markets 03:30:00 08/05/2024 am IST			5-day change	1st Jan Change
19,050 ^KRW	-0.68%		-3.20%	+9.74%

08/05	South Korean Shares Close Higher for Second Day Amid US Fed Rate Cut Speculations	MT
08/05	Hanwha Solutions Set to Gain $140 Million in US Tax Credits with Solar Panel Plant Expansion	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	11,40,885	19,05,108	29,91,892	19,72,779	32,46,203	35,62,222	-	-
Enterprise Value (EV) ²	702.6	1,452	1,366	854.5	3,246	3,330	3,258	3,254
P/E ratio	14.7 x	20.4 x	24.9 x	-24.4 x	9.31 x	23.5 x	20.8 x	18.1 x
Yield	3%	1.33%	1%	2.37%	-	1.47%	1.46%	1.56%
Capitalization / Revenue	0.74 x	1.16 x	1.43 x	0.9 x	1.32 x	1.29 x	1.17 x	1.07 x
EV / Revenue	0.45 x	0.88 x	0.65 x	0.39 x	1.32 x	1.2 x	1.07 x	0.98 x
EV / EBITDA	4.46 x	7.54 x	6.57 x	6.63 x	15.1 x	11.5 x	10.6 x	9.09 x
EV / FCF	1.92 x	11.2 x	5.78 x	3.88 x	-	21.3 x	15 x	23.5 x
FCF Yield	52.1%	8.89%	17.3%	25.8%	-	4.69%	6.66%	4.26%
Price to Book	1.94 x	3.46 x	1.1 x	0.97 x	-	1.6 x	1.49 x	1.43 x
Nbr of stocks (in thousands)	1,10,230	1,10,122	1,86,993	1,86,993	1,86,993	1,86,993	-	-
Reference price ³	10,350	17,300	16,000	10,550	17,360	19,050	19,050	19,050
Announcement Date	10/02/20	19/02/21	22/02/22	23/02/23	07/02/24	-	-	-

¹KRW in Million²KRW in Billions³KRW

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	1,546	1,643	2,090	2,188	2,453	2,768	3,051	3,326
EBITDA ¹	157.7	192.6	208	129	214.8	288.8	306.7	358
EBIT ¹	85.76	92.86	112	24.02	92.83	153	178.2	211.7
Operating Margin	5.55%	5.65%	5.36%	1.1%	3.78%	5.53%	5.84%	6.37%
Earnings before Tax (EBT) ¹	82.17	79.08	128.1	-57.02	413.4	180.5	202.5	239.5
Net income ¹	72.9	93.58	98.32	-76.56	349.2	151.3	171.6	195.5
Net margin	4.72%	5.7%	4.71%	-3.5%	14.24%	5.46%	5.62%	5.88%
EPS ²	706.0	850.0	642.0	-432.0	1,864	811.0	913.9	1,055
Free Cash Flow ³	3,66,134	1,29,165	2,36,393	2,20,288	-	1,56,250	2,17,000	1,38,700
FCF margin	23,682.92%	7,862.22%	11,313.37%	10,067.99%	-	5,644.2%	7,111.65%	4,169.79%
FCF Conversion (EBITDA)	2,32,236.27%	67,078.28%	1,13,663.42%	1,70,799.1%	-	54,112.24%	70,758.97%	38,740.81%
FCF Conversion (Net income)	5,02,268.32%	1,38,025.29%	2,40,444.77%	-	-	1,03,301.99%	1,26,490.38%	70,946.29%
Dividend per Share ²	310.0	230.0	160.0	250.0	-	280.1	277.5	296.7
Announcement Date	10/02/20	19/02/21	22/02/22	23/02/23	07/02/24	-	-	-

¹KRW in Billions²KRW³KRW in Million

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4
Net sales ¹	557.4	679.5	429.6	510.5	459.4	788.5	439.5	610.7	620.8	782.1	544.4	650.6	679.2	902.5
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	42.58	7.348	15.2	16.4	0.5	-8.108	8.386	25.93	37.33	10.97	39.26	38.38	45.96	29.18
Operating Margin	7.64%	1.08%	3.54%	3.21%	0.11%	-1.03%	1.91%	4.25%	6.01%	1.4%	7.21%	5.9%	6.77%	3.23%
Earnings before Tax (EBT) ¹	42.21	25.54	17.2	-	9.2	-45.42	224.6	108.9	51.55	18.45	60.84	42.47	51.97	25.5
Net income ¹	31.19	21.3	10.6	-	3.6	-46.22	186.4	76.32	42.83	43.7	51.8	37.93	42.8	27.25
Net margin	5.6%	3.13%	2.47%	-	0.78%	-5.86%	42.4%	12.5%	6.9%	5.59%	9.52%	5.83%	6.3%	3.02%
EPS	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	28/10/21	22/02/22	28/04/22	28/07/22	27/10/22	23/02/23	25/04/23	27/07/23	30/10/23	07/02/24	26/04/24	-	-	-

¹KRW in Billions

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	438	453	1,626	1,118	-	232	304	308
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ²	3,66,134	1,29,165	2,36,393	2,20,288	-	1,56,250	2,17,000	1,38,700
ROE (net income / shareholders' equity)	8.15%	9.35%	6.04%	-3.77%	-	6.88%	7.29%	8.19%
ROA (Net income/ Total Assets)	3.38%	3.67%	2.98%	-1.95%	-	3.51%	3.67%	4.21%
Assets ¹	2,156	2,552	3,295	3,932	-	4,307	4,672	4,646
Book Value Per Share ³	5,337	5,004	14,583	10,830	-	11,908	12,772	13,330
Cash Flow per Share ³	-	1,587	2,077	1,436	-	1,401	1,358	1,709
Capex ¹	42.5	45.6	80.1	48.3	-	147	134	150
Capex / Sales	2.75%	2.78%	3.83%	2.21%	-	5.29%	4.4%	4.51%
Announcement Date	10/02/20	19/02/21	22/02/22	23/02/23	07/02/24	-	-	-

¹KRW in Billions²KRW in Million³KRW

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Hanwha Systems Co., Ltd.

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

19,050 KRW

Average target price

22,631 KRW

Spread / Average Target

+18.80%

Consensus

EPS Revisions

Estimates Revisions

Quarterly revenue - Rate of surprise

Company calendar

Sector Other Aerospace & Defense

	1st Jan change	Capi.
HANWHA SYSTEMS CO., LTD.	+9.74%	2.64B
RTX CORPORATION	+23.53%	137B
GENERAL DYNAMICS CORPORATION	+12.74%	80.36B
NORTHROP GRUMMAN CORPORATION	+0.74%	70.11B
BAE SYSTEMS PLC	+24.40%	51.87B
ROLLS-ROYCE HOLDINGS PLC	+43.04%	43.89B
L3HARRIS TECHNOLOGIES, INC.	+2.46%	40.95B
HINDUSTAN AERONAUTICS LIMITED	+37.54%	29.77B
RHEINMETALL AG	+86.34%	24.75B
AXON ENTERPRISE, INC.	+20.72%	23.6B

Other Aerospace & Defense