2Q26 OP beat; exports story remains intact

研报英文原文证据摘录

2Q26 OP beat; exports story remains intact

Global Markets Research

Hanwha Aerospace 012450.KS 012450 KS 31 July 2026

EQUITY: CAPITAL GOODS

2Q26 OP beat; exports story remains intact Rating Remains Buy

Target price

Reduced fromReiterate Buy and lower TP by 12.5% to KRW1,400,000 KRW 1,400,000 KRW 1,600,000

Reiterate Buy and lower TP by 12.5% to KRW1,400,000, implying 52.7% upside Closing31 July 2026price KRW 917,000

We reaffirm Buy on Hanwha Aerospace (HA) and lower our TP to KRW1,400,000 (from

KRW1,600,000), based on an unchanged SOTP valuation (Fig.10). We derive HA’s Implied upside +52.7%

operating value of KRW72.7tn (previously: KRW80.9tn) by multiplying a P/E of 31.9x

(2026E global peers’ consensus average; previously Asia average of 39.7x) with our Market Cap (USD mn) 33,072.2

12MF adjusted NP of KRW2.2tn (previously: KRW2.1tn), which excludes the earnings of ADT (USD mn) 163.4

Hanwha Systems (HS; 272210 KS, Neutral) and Hanwha Ocean (HO; 042660 KS,

Reduce). We assume a 70% (unchanged) discount for the ownership value of its Relative performance chart

subsidiaries.

HA’s stock price has corrected -43.1% vs. this year’s peak price on 7 April (vs. KOSPI

+9.7%), owing to: 1) retail investors focusing more on the semi sector, 2) continued

Middle East conflict delaying new orders, and 3) an explosion in HA’s Daejeon R&D

facility. HA currently trades at a 2026F P/E of 19.1x (EPS: KRW48,065, standalone P/E

24.5x).

We see the strong new orders momentum in 2H26F as an upside catalyst. We await

KRW16tn of overseas new orders in 2H26F. The Saudi term-sheet contract can add

additional KRW20tn of new orders in the-long term. A downside risk is delays in new

orders from the Middle East due to the conflict in the region.