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

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyzed the changes in foreign holdings of KRX stocks as of Dec 19th. The aggregated holding was USD820.8bn.</li>
<li>We estimate that foreign flows to be outflows of USD839mln. 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 HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics, Samsung Elec (PREF), ISUPETASYS, NAVER.</li>
</ul>


We analyzed the changes in foreign holdings of KRX stocks as of Dec 19th. The aggregated holding was USD820.8bn.
We estimate that foreign flows to be outflows of USD839mln. 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 HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics, Samsung Elec (PREF), ISUPETASYS, NAVER.


KRX Foreign Holding Weekly (Dec 19th): HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>Since short selling was banned in November 2023, short interest has plunged in Korea as shorts were covered. Markets have not done much over the last 16 months though. </li>
<li>Foreign investor holdings have dropped from 32.05% in July to 28.57%. The top 25 stocks bought by foreign investors outperformed the top 25 stocks sold by 128% in 16 months.</li>
<li>There will be trade opportunities across indices, pref/ords, index migrations and deletions, potential market upgrades and overvalued stocks being sold.</li>
</ul>


Since short selling was banned in November 2023, short interest has plunged in Korea as shorts were covered. Markets have not done much over the last 16 months though. 
Foreign investor holdings have dropped from 32.05% in July to 28.57%. The top 25 stocks bought by foreign investors outperformed the top 25 stocks sold by 128% in 16 months.
There will be trade opportunities across indices, pref/ords, index migrations and deletions, potential market upgrades and overvalued stocks being sold.


Korea: Short Selling Is Back in March; Trade Ideas

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

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

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

KRX Foreign Holding Weekly (Dec 19th): HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics,...

Ke Yan, CFA, FRM

Korea: Short Selling Is Back in March; Trade Ideas

Short selling in Korea commences from Monday. There will be a lot of interest in shorting stocks/sectors depending on how they have performed since...

Brian Freitas

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

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

KRX Foreign Holding Weekly (Dec 19th): HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics

We analyzed KRX foreign holding data for the past week and highlighted foreign holding changes in HD HYUNDAI HEAVY INDUSTRIES, Samsung Electronics,...

Ke Yan, CFA, FRM

Korea: Short Selling Is Back in March; Trade Ideas

Short selling in Korea commences from Monday. There will be a lot of interest in shorting stocks/sectors depending on how they have performed since...

Brian Freitas

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

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