Hanwha Aerospace, South Korea's largest defense company, sees stock drop 6% due to lower-than-expected revenue and pre-tax profits
On Tuesday, shares of Hanwha Aerospace, South Korea's largest defense company, plunged over 6% after the company reported lower-than-expected fourth-quarter revenue and pre-tax profit on Monday.
Fourth-quarter revenue rose 72.56% year-over-year to 8.33 trillion won, but fell short of the LSEG forecast of 8.64 trillion won.
Pre-tax profit plummeted 72% to 602 billion won, well below the market expectation of 1.2 trillion won; operating profit fell 16% to 753 billion won.
Net profit was one of the few bright spots: although it declined 54% year-over-year, it still reached 934 billion won, exceeding the LSEG forecast of 717.2 billion won.
Annual Performance
Annual revenue soared 137% year-over-year to 26.61 trillion won, but slightly missed the expected 27.01 trillion won.
Pre-tax profit edged down to 2.15 trillion won, a 19% year-over-year decline, and was below the expected 2.73 trillion won.
Hanwha achieved record operating profit for the fourth consecutive year, and net profit also exceeded expectations:
Operating profit increased 75% year-over-year to 3.03 trillion won.
Net profit fell 16% year-over-year to 2.14 trillion won, higher than the expected 1.65 trillion won.
Stock Performance
So far this year, Hanwha's share price has risen by 18.92%.
Hanwha is the 11th largest stock by market capitalization on the Korea Composite Stock Price Index (Kospi), with a market value of approximately $42.03 billion.
Since the outbreak of the Russia-Ukraine conflict, demand for Hanwha's defense equipment has continued to grow, with the company receiving orders from multiple European countries. Since 2022, Hanwha has exported K9 "Thunder" self-propelled howitzers and "Chunmoo" multiple rocket launcher systems to Poland, Estonia, Romania, and Norway.
Editor: Li Zhaofu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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