Hanwha Aerospace: Revenue Surge and 12.2% Margin Meet a Share Price Roughly 48% Below Its 52-Week High

Thesis

The data supports a picture of rapid scale-up: revenue rose from ₩6.4T in 2021 to ₩26.7T in 2025, and the TTM figure of ₩30.0T is higher still. Operating margin improved from 6.0% in 2021 to 11.6% in 2025 and 12.2% on a TTM basis, and TTM ROE is 23.7%. What the data does not fully support is a view that earnings quality is steady. Operating margin was higher in 2024 (15.4%) than in 2025, and net income fell from ₩2.3T in 2024 to ₩1.4T in 2025 even as revenue more than doubled. The share price has fallen 20.3% in one month and sits well below the 52-week high of ₩1,655,000, but the data gives no reason for the decline: no news headlines, investor flow, foreign ownership or short balance figures are available. Several insider shareholding reports and an earnings-results advance notice were filed in early October.

Business overview

Hanwha Aerospace is listed on KOSPI in the Aerospace & Defense sector and has been listed since 1987-05-27. It was founded on 1977-08-01 and has 51,563,401 listed shares. The CEOs are named as 김동관 and 이부환. Market capitalisation is ₩44.4T and enterprise value is ₩42.3T. Among the sector peers listed, LIG Defense&Aerospace has a market cap of ₩13.1T and Korea Aerospace Industries ₩11.3T, so Hanwha Aerospace is several times larger than either. Revenue history from the data: ₩6.4T (2021), ₩6.5T (2022), ₩9.4T (2023), ₩11.2T (2024), ₩26.7T (2025). Growth was 1.9% in 2022, 43.1% in 2023, 20.1% in 2024 and 137.6% in 2025.

Financial analysis

These figures come from filed financial statements (DART), consolidated where available. TTM to H1 2026: revenue ₩30.0T, operating income ₩3.7T (12.2% margin), net income ₩2.0T (6.7% margin), ROE 23.7%. Annual operating income was ₩383B in 2021, ₩377B in 2022, ₩691B in 2023, ₩1.7T in 2024 and ₩3.1T in 2025. Net income was ₩2.3T in 2024, which was above its operating income of ₩1.7T, and ₩1.4T in 2025. ROE was 53.9% in 2024 and 19.1% in 2025. Liabilities to equity are 190.3%. Cash is ₩8.0T against borrowings of ₩5.9T, a net cash position of about ₩2.1T. TTM free cash flow is ₩736B, which is small relative to ₩2.0T of net income.

Valuation

The current P/E is 22.0, P/B is 3.7 and P/S is 1.5, with a dividend yield of 0.9%. At the end of 2025 the P/E was 34.5 and the P/B 5.0, so both multiples are lower now than at that point. Year-end multiples for 2021 to 2024 are not available, so a longer history cannot be compared. EV/EBITDA is not available. Peer P/E and P/B figures are also not available, so a multiple comparison with LIG Defense&Aerospace, Korea Aerospace Industries and others cannot be made; only market caps are provided. The price is 8.6% above the 52-week low of ₩783,000 and about 47.9% below the high.

Catalysts

• The advance notice of earnings results disclosure filed on 2026-10-08 points to a coming results release, though the data does not give its date or content.
• Two investor relations events were filed on 2026-10-08, which may bring further company communication to the market.
• Five insider shareholding reports were filed on 2026-10-12, and a change in the largest shareholder's holdings was filed on 2026-09-18, which could be of interest for ownership questions.
• Related-party transaction filings on 2026-09-22 and 2026-10-07 may draw attention to dealings with affiliated companies, though their details are not in the data.

Risks

• The share price fell 20.3% in the past month and 17.3% over one year, and the data offers no explanation, so the drivers are unclear.
• Net income fell from ₩2.3T in 2024 to ₩1.4T in 2025 despite revenue growth of 137.6%, and the TTM net margin is only 6.7%.
• TTM free cash flow of ₩736B is low against ₩2.0T of net income, so earnings are not fully converting to cash.
• Liabilities are 190.3% of equity and borrowings are ₩5.9T, which adds financial leverage.
• Investor flows, foreign ownership, short balance and peer multiples are missing, which limits any view of market positioning or relative valuation.

Closing view

The filed numbers show a company that has grown sharply, with revenue up more than fourfold since 2021 and a TTM operating margin of 12.2%. Against that, profit has not kept pace with revenue in 2025, cash conversion looks modest, and leverage is meaningful. The multiples have eased from year-end 2025 levels, but with no peer multiples, flow data or news, the data cannot show whether the recent price weakness reflects company-specific issues or wider market moves. The upcoming earnings release is the next datapoint visible in the filings.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationHanwha Aerospace: Revenue Surge and 12.2% Margin Meet a Share Price Roughly 48% Below Its 52-Week High