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

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>Asian earnings estimates are being revised up stupendously. Over past 6 months, 2026 consensus EPS is up 16%. 63 market-sectors out of 159 saw upgrades, vs 30 few months ago.</li>
<li>While the main drivers are Korean and Taiwanese tech, the spill-over from tech into consumption sentiment and investment propensity are visible. Korean retail, financials, Taiwanese financials have had significant upgrades.</li>
<li>The pedestrian upgrade to China's EPS and the downgrade to Hong Kong's are surprising. Our preferences remain on Korean tech, industrials, defense, financials, Taiwanese tech, Chinese basic materials, HK financials.</li>
</ul>


Asian earnings estimates are being revised up stupendously. Over past 6 months, 2026 consensus EPS is up 16%. 63 market-sectors out of 159 saw upgrades, vs 30 few months ago.
While the main drivers are Korean and Taiwanese tech, the spill-over from tech into consumption sentiment and investment propensity are visible. Korean retail, financials, Taiwanese financials have had significant upgrades.
The pedestrian upgrade to China's EPS and the downgrade to Hong Kong's are surprising. Our preferences remain on Korean tech, industrials, defense, financials, Taiwanese tech, Chinese basic materials, HK financials.


Asian Equities: The Earnings Juggernaut Is Rolling on and Getting Broad-Based

<ul>
<li>We argued that Asia was oversold in March. In April FIIs bought back a little, US$1.58bn, predominantly in Taiwan (US$7.83bn). They bought US$493m in Korea and sold US$6.47bn in India.</li>
<li>Our study of last 20 years FII investment shows that the present episode is the largest quantum of FII selling in Asia in a short period. </li>
<li>The large Asian markets, Korea, Taiwan and India, are all near their troughs in terms of 6-monthly cumulative FII selling as percentage of market cap. India could get sold more.</li>
</ul>


We argued that Asia was oversold in March. In April FIIs bought back a little, US$1.58bn, predominantly in Taiwan (US$7.83bn). They bought US$493m in Korea and sold US$6.47bn in India.
Our study of last 20 years FII investment shows that the present episode is the largest quantum of FII selling in Asia in a short period. 
The large Asian markets, Korea, Taiwan and India, are all near their troughs in terms of 6-monthly cumulative FII selling as percentage of market cap. India could get sold more.


Asian Equities: Nascent Revival in FII Flows in April, but a Long Way to Go

<ul>
<li>KOSPI is just 10% shy of 7000, a level unimaginable till recently. After a stunning 56% rally since late October, KOSPI is 16% cheaper, due to humungous earnings estimate upgrades.</li>
<li>Technology, industrials, defense, financials largely drove EPS upgrades and market performance. Sectors that have lagged but have robust growth forecasts and cheap valuations: consumer services, staples, retail and basic materials.</li>
<li>Foreign institutions under-own Korea. They have cumulatively sold US$28bn over past 6 years, and astonishingly, US$10.3bn since November. They'll find Korea's earnings boom and global macro tailwinds difficult to ignore.</li>
</ul>


KOSPI is just 10% shy of 7000, a level unimaginable till recently. After a stunning 56% rally since late October, KOSPI is 16% cheaper, due to humungous earnings estimate upgrades.
Technology, industrials, defense, financials largely drove EPS upgrades and market performance. Sectors that have lagged but have robust growth forecasts and cheap valuations: consumer services, staples, retail and basic materials.
Foreign institutions under-own Korea. They have cumulatively sold US$28bn over past 6 years, and astonishingly, US$10.3bn since November. They'll find Korea's earnings boom and global macro tailwinds difficult to ignore.


Asian Equities: KOSPI 7000 Appears Within Reach; Some Laggard Sectors Warrant Closer Look

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Oct 2nd. The aggregated holding was USD1,724.3bn.</li>
<li>We estimate that foreign flows to be outflows of USD6,402mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.</li>
<li>We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, Woori Financial, SamsungElecMech, Doosan Enerbility.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Oct 2nd. The aggregated holding was USD1,724.3bn.
We estimate that foreign flows to be outflows of USD6,402mln. We tabulate the league table for top changes by value for 1W/4W/1Y and top stocks held by foreign institutions.
We highlight changes of foreign holdings in SK Hynix, Samsung Electronics, Woori Financial, SamsungElecMech, Doosan Enerbility.


KRX Foreign Holding Weekly (Oct 2nd): SK Hynix, Samsung Electronics, Woori Financial

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

Asian Equities: The Earnings Juggernaut Is Rolling on and Getting Broad-Based

Asian EPS est are soaring driven by KR & TW tech. CN had modest upgrade over past 6 months & HK was downgraded. Spill-over from tech into...

Manishi Raychaudhuri

Asian Equities: Nascent Revival in FII Flows in April, but a Long Way to Go

FIIs bought back $1.58bn in Asia in April, with Taiwan leading the way. FII selling in India, TW & KR as percentage of market cap are near...

Manishi Raychaudhuri

Asian Equities: KOSPI 7000 Appears Within Reach; Some Laggard Sectors Warrant Closer Look

KOSPI is steadily climbing the 7000 peak, after a brief wobble due to energy shortage worries. Lat week, Q1 flash GDP growth estimate (1.7%)...

Manishi Raychaudhuri

KRX Foreign Holding Weekly (Oct 2nd): SK Hynix, Samsung Electronics, Woori Financial

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, Samsung Electronics, Woori Financial,...

Ke Yan, CFA, FRM

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

Asian Equities: The Earnings Juggernaut Is Rolling on and Getting Broad-Based

​Asian EPS est are soaring driven by KR & TW tech. CN had modest upgrade over past 6 months & HK was downgraded. Spill-over from tech into...

Manishi Raychaudhuri

Asian Equities: Nascent Revival in FII Flows in April, but a Long Way to Go

​FIIs bought back $1.58bn in Asia in April, with Taiwan leading the way. FII selling in India, TW & KR as percentage of market cap are near...

Manishi Raychaudhuri

Asian Equities: KOSPI 7000 Appears Within Reach; Some Laggard Sectors Warrant Closer Look

KOSPI is steadily climbing the 7000 peak, after a brief wobble due to energy shortage worries. Lat week, Q1 flash GDP growth estimate (1.7%)...

Manishi Raychaudhuri

KRX Foreign Holding Weekly (Oct 2nd): SK Hynix, Samsung Electronics, Woori Financial

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in SK Hynix, Samsung Electronics, Woori Financial,...

Ke Yan, CFA, FRM

Asian EPS est are soaring driven by KR & TW tech. CN had modest upgrade over past 6 months & HK was downgraded. Spill-over from tech into...

FIIs bought back $1.58bn in Asia in April, with Taiwan leading the way. FII selling in India, TW & KR as percentage of market cap are near...