Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In 3Q25, Hanwha Aerospace reported sales of 6.5 trillion won (up 146.5% YoY and 1.6% lower than consensus) and operating profit of 856.4 billion won (up 79.5% YoY).</li>
<li>The company's results in 3Q 2025 were its best ever in its history. The strong results were driven by its land defense business and its shipbuilding unit Hanwha Ocean.</li>
<li>Given the company's excellent growth in sales and profits in the past several years as well as its strong order backlog, its valuationsremain attractive. </li>
</ul>


In 3Q25, Hanwha Aerospace reported sales of 6.5 trillion won (up 146.5% YoY and 1.6% lower than consensus) and operating profit of 856.4 billion won (up 79.5% YoY).
The company's results in 3Q 2025 were its best ever in its history. The strong results were driven by its land defense business and its shipbuilding unit Hanwha Ocean.
Given the company's excellent growth in sales and profits in the past several years as well as its strong order backlog, its valuationsremain attractive. 


Hanwha Aerospace: Best Ever Results in 3Q 2025

Global Materials | Industrials | Commodities

Rahul Jain

<ul>
<li>Hanwha Aerospace has scaled into Asia’s top defense prime, with Land Systems (K9, Chunmoo, Redback) driving &gt;30% OP margins and consolidated revenues compounding ~30% annually.</li>
<li>A ₩31.7 tn orderbook (~4x sales) anchored in Poland, Australia, and Romania underpins multi-year growth visibility, with Ocean adding LNG/naval scale and Systems providing electronics integration.</li>
<li>Hanwha trades in line with peers (~19× P/E, ~16× EV/EBITDA); upside hinges on backlog execution, while governance and ESG risks cap multiples.</li>
</ul>


Hanwha Aerospace has scaled into Asia’s top defense prime, with Land Systems (K9, Chunmoo, Redback) driving &gt;30% OP margins and consolidated revenues compounding ~30% annually.
A ₩31.7 tn orderbook (~4x sales) anchored in Poland, Australia, and Romania underpins multi-year growth visibility, with Ocean adding LNG/naval scale and Systems providing electronics integration.
Hanwha trades in line with peers (~19× P/E, ~16× EV/EBITDA); upside hinges on backlog execution, while governance and ESG risks cap multiples.


Hanwha Aerospace – Growth Is Structural, Governance Is the Cap

Cross Asset Strategy

<ul>
<li>It was reported that the Chinese government advised its citizens to refrain from traveling to Japan, which is likely to positively benefit the Korea in-bound tourism related stocks.</li>
<li>If the political tensions between China and Japan are not quickly resolved but continues to last, this would have further negative impact on the Japanese consumer/tourism/leisure related companies. </li>
<li>On the flip side, this could have a positive impact on the Korean consumer/tourism/leisure related companies such as Lotte Tour Development, Hotel Shilla, and Paradise. </li>
</ul>


It was reported that the Chinese government advised its citizens to refrain from traveling to Japan, which is likely to positively benefit the Korea in-bound tourism related stocks.
If the political tensions between China and Japan are not quickly resolved but continues to last, this would have further negative impact on the Japanese consumer/tourism/leisure related companies. 
On the flip side, this could have a positive impact on the Korean consumer/tourism/leisure related companies such as Lotte Tour Development, Hotel Shilla, and Paradise. 


China Advices Its Citizens to Refrain from Traveling to Japan - Beneficial Impact on Korea Tourism

Equity Capital Markets

Hanwha Aerospace / Equity Capital Markets

<ul>
<li>On 21 May, Hanwha Aerospace (012450 KS) announced that the rights offering price increased to 684,000 won (up 26.9% from 539,000 won previously) due to recent increase in price.</li>
<li>Due to the higher rights offering price, the scale of the capital raise has increased from 2.3 trillion won previously to 2.9 trillion won (US$2.1 billion).</li>
<li>Issue price is determined by applying a 15% discount rate to the one-month weighted arithmetic average price, one-week weighted arithmetic average  price, and the closing price on the base date.</li>
</ul>


On 21 May, Hanwha Aerospace (012450 KS) announced that the rights offering price increased to 684,000 won (up 26.9% from 539,000 won previously) due to recent increase in price.
Due to the higher rights offering price, the scale of the capital raise has increased from 2.3 trillion won previously to 2.9 trillion won (US$2.1 billion).
Issue price is determined by applying a 15% discount rate to the one-month weighted arithmetic average price, one-week weighted arithmetic average  price, and the closing price on the base date.


Hanwha Aerospace: Higher Rights Offering Price and Amount

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Next day’s base price uses the 3:30pm close—NXT's after-hours moves don’t count. That small gap can impact rights offerings, as seen in Samsung SDI’s pricing delta on April 8.</li>
<li>NXT after-hours volumes count toward VWAP. So in uptrends, they can impact pricing—possibly with Samsung SDI’s final reference price on May 16.</li>
<li>No shorting allowed after 3:30pm on NXT, leading to inefficiencies—while not yet fit for latency arb, it’s ripe for tactical day–night spread plays and re-entry timing.</li>
</ul>


Next day’s base price uses the 3:30pm close—NXT's after-hours moves don’t count. That small gap can impact rights offerings, as seen in Samsung SDI’s pricing delta on April 8.
NXT after-hours volumes count toward VWAP. So in uptrends, they can impact pricing—possibly with Samsung SDI’s final reference price on May 16.
No shorting allowed after 3:30pm on NXT, leading to inefficiencies—while not yet fit for latency arb, it’s ripe for tactical day–night spread plays and re-entry timing.


How NXT (ATS) Affects Event Pricing from a Microstructure Perspective

South Korea

Hanwha Aerospace Co., Ltd. operates as an aircraft parts manufacturing company. The Company produces and sells aircraft gas turbine engine products, aircraft compressors, low pressure turbines, and other products. Hanwha Aerospace markets its products worldwide.

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Hanwha Aerospace (012450 KS)

Hanwha Aerospace: Best Ever Results in 3Q 2025

In 3Q25, Hanwha Aerospace reported sales of 6.5 trillion won (up 146.5% YoY), operating profit of 856.4 billion won (up 79.5% YoY). The company's...

Douglas Kim

Hanwha Aerospace – Growth Is Structural, Governance Is the Cap

Hanwha Aerospace emerges as top defense prime in Asia, driven by Land Systems with high margins and strong revenue growth, backed by diverse...

Rahul Jain

China Advices Its Citizens to Refrain from Traveling to Japan - Beneficial Impact on Korea Tourism

Chinese government advising against travel to Japan could boost Korean tourism stocks, while prolonged tensions could harm Japanese companies.

Douglas Kim

Hanwha Aerospace: Higher Rights Offering Price and Amount

FSS has accepted Hanwha Aerospace's rights offering securities report finally on 28 May. Amount of issue has been raised from 2.3 trillion won to...

Douglas Kim

How NXT (ATS) Affects Event Pricing from a Microstructure Perspective

This post breaks down how NXT (ATS) impacts event pricing from a microstructure standpoint, highlighting how its extended hours session influence...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hanwha Aerospace: Best Ever Results in 3Q 2025

In 3Q25, Hanwha Aerospace reported sales of 6.5 trillion won (up 146.5% YoY), operating profit of 856.4 billion won (up 79.5% YoY). The company's...

Douglas Kim

Hanwha Aerospace – Growth Is Structural, Governance Is the Cap

​Hanwha Aerospace emerges as top defense prime in Asia, driven by Land Systems with high margins and strong revenue growth, backed by diverse...

Rahul Jain

China Advices Its Citizens to Refrain from Traveling to Japan - Beneficial Impact on Korea Tourism

​Chinese government advising against travel to Japan could boost Korean tourism stocks, while prolonged tensions could harm Japanese companies.

Douglas Kim

Hanwha Aerospace: Higher Rights Offering Price and Amount

FSS has accepted Hanwha Aerospace's rights offering securities report finally on 28 May. Amount of issue has been raised from 2.3 trillion won to...

Douglas Kim

How NXT (ATS) Affects Event Pricing from a Microstructure Perspective

This post breaks down how NXT (ATS) impacts event pricing from a microstructure standpoint, highlighting how its extended hours session influence...

Sanghyun Park

Hanwha Aerospace emerges as top defense prime in Asia, driven by Land Systems with high margins and strong revenue growth, backed by diverse...

Chinese government advising against travel to Japan could boost Korean tourism stocks, while prolonged tensions could harm Japanese companies.