Financials Hanwha Systems Co., Ltd.

Equities

A272210

KR7272210006

Aerospace & Defense

End-of-day quote Korea S.E. Other stock markets 06:00:00 2024-05-30 pm EDT			5-day change	1st Jan Change
17,450 ^KRW	+0.17%		-2.08%	+0.52%

09:32am	South Korean Shares Up on Upbeat Manufacturing Activity Data; Hanwha Ocean Adds 5% on Canada Submarine Project Win	MT
09:08am	Hanwha Ocean Collaborates with Three Canadian Tech Firms for Submarine Project	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	1,140,885	1,905,108	2,991,892	1,972,779	3,246,203	3,263,032	-	-
Enterprise Value (EV) ²	702.6	1,452	1,366	854.5	3,068	3,031	2,959	2,955
P/E ratio	14.7 x	20.4 x	24.9 x	-24.4 x	9.31 x	21.5 x	18.5 x	16.5 x
Yield	3%	1.33%	1%	2.37%	1.61%	1.61%	1.6%	1.69%
Capitalization / Revenue	0.74 x	1.16 x	1.43 x	0.9 x	1.32 x	1.18 x	1.07 x	0.98 x
EV / Revenue	0.45 x	0.88 x	0.65 x	0.39 x	1.25 x	1.1 x	0.97 x	0.89 x
EV / EBITDA	4.46 x	7.54 x	6.57 x	6.63 x	14.3 x	10.6 x	9.54 x	8.44 x
EV / FCF	1.92 x	11.2 x	5.78 x	3.88 x	-62.7 x	17.4 x	13.2 x	16.7 x
FCF Yield	52.1%	8.89%	17.3%	25.8%	-1.6%	5.75%	7.58%	5.97%
Price to Book	1.94 x	3.46 x	1.1 x	0.97 x	1.53 x	1.46 x	1.37 x	1.31 x
Nbr of stocks (in thousands)	110,230	110,122	186,993	186,993	186,993	186,993	-	-
Reference price ³	10,350	17,300	16,000	10,550	17,360	17,450	17,450	17,450
Announcement Date	2/10/20	2/19/21	2/22/22	2/23/23	2/7/24	-	-	-

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	2,756	3,055	3,318
EBITDA ¹	157.7	192.6	208	129	214.8	284.8	310.3	350.1
EBIT ¹	85.76	92.86	112	24.02	92.83	152	181.9	211.1
Operating Margin	5.55%	5.65%	5.36%	1.1%	3.78%	5.52%	5.95%	6.36%
Earnings before Tax (EBT) ¹	82.17	79.08	128.1	-57.02	413.4	180.5	208.7	239.5
Net income ¹	72.9	93.58	98.32	-76.56	349.2	151.3	176.9	195.5
Net margin	4.72%	5.7%	4.71%	-3.5%	14.24%	5.49%	5.79%	5.89%
EPS ²	706.0	850.0	642.0	-432.0	1,864	811.0	942.6	1,055
Free Cash Flow ³	366,134	129,165	236,393	220,288	-48,953	174,225	224,260	176,425
FCF margin	23,682.92%	7,862.22%	11,313.37%	10,067.99%	-1,995.61%	6,321.55%	7,340.32%	5,317.53%
FCF Conversion (EBITDA)	232,236.27%	67,078.28%	113,663.42%	170,799.1%	-	61,184.02%	72,272.46%	50,387.46%
FCF Conversion (Net income)	502,268.32%	138,025.29%	240,444.77%	-	-	115,185.85%	126,800.86%	90,242.97%
Dividend per Share ²	310.0	230.0	160.0	250.0	280.0	280.1	280.0	295.0
Announcement Date	2/10/20	2/19/21	2/22/22	2/23/23	2/7/24	-	-	-

¹KRW in Billions²KRW³KRW in Million

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	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	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	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	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	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	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	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	2/22/22	4/28/22	7/28/22	10/27/22	2/23/23	4/25/23	7/27/23	10/30/23	2/7/24	4/26/24	-	-	-

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	178	232	304	308
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ²	366,134	129,165	236,393	220,288	-48,953	174,225	224,260	176,425
ROE (net income / shareholders' equity)	8.15%	9.35%	6.04%	-3.77%	16.9%	7.01%	7.47%	8.14%
ROA (Net income/ Total Assets)	3.38%	3.67%	2.98%	-1.95%	8.29%	3.55%	3.74%	4.11%
Assets ¹	2,156	2,552	3,295	3,932	4,214	4,255	4,726	4,760
Book Value Per Share ³	5,337	5,004	14,583	10,830	11,327	11,938	12,757	13,356
Cash Flow per Share ³	-	1,587	2,077	1,436	445.0	1,437	1,445	1,591
Capex ¹	42.5	45.6	80.1	48.3	132	125	131	135
Capex / Sales	2.75%	2.78%	3.83%	2.21%	5.39%	4.54%	4.3%	4.05%
Announcement Date	2/10/20	2/19/21	2/22/22	2/23/23	2/7/24	-	-	-

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

17,450 KRW

Average target price

22,631 KRW

Spread / Average Target

+29.69%

Consensus

EPS Revisions

Estimates Revisions

Quarterly revenue - Rate of surprise

Company calendar

Sector Other Aerospace & Defense

	1st Jan change	Capi.
HANWHA SYSTEMS CO., LTD.	+0.52%	2.36B
RTX CORPORATION	+28.13%	143B
GENERAL DYNAMICS CORPORATION	+15.44%	82.11B
NORTHROP GRUMMAN CORPORATION	-3.71%	66.71B
BAE SYSTEMS PLC	+26.29%	53.3B
ROLLS-ROYCE HOLDINGS PLC	+55.12%	48.25B
L3HARRIS TECHNOLOGIES, INC.	+6.75%	42.65B
HINDUSTAN AERONAUTICS LIMITED	+88.08%	39.86B
BHARAT ELECTRONICS LIMITED	+73.09%	25.93B
RHEINMETALL AG	+86.62%	24.85B

Other Aerospace & Defense