Hanwha Aerospace Co., Ltd. (012450) AI Stock Analysis

Hanwha Aerospace Co., Ltd.

(Korea Exchange:012450)

Select Model

Rating:58Neutral

Price Target:KRW 798,720.00▲(7.94% Upside)

Action:initiatedcoverage

Date:10/28/26

The score is driven primarily by solid underlying fundamentals (strong growth and improved TTM profitability) but is held back by elevated leverage and weaker recent cash conversion. Technical signals are the largest near-term negative, with the stock in a clear downtrend and bearish momentum. Valuation is neutral, with a moderate P/E and limited dividend support.

Positive Factors

Revenue and Profitability GrowthSharp revenue scaling and solid TTM margins indicate improving operating earnings power and expanding business activity. This combination can support reinvestment, strengthen the company’s position in defense markets, and provide a durable foundation for earnings growth over the next several quarters.

Negative Factors

Elevated LeverageDebt remains materially above equity and absolute debt has risen from 2023 through TTM, leaving the balance sheet exposed to weaker margins or demand. Elevated leverage can constrain financial flexibility and reduce the capacity to fund growth without additional borrowing.

Hanwha Aerospace Co., Ltd. (012450) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 35.81T
Dividend Yield: 1.01%
Average Volume (3M): 168.03K
Price to Earnings (P/E): 25.8
Beta (1Y): 0.23
Revenue Growth: 27.93%
EPS Growth: -51.70%
Country: KR
Employees: 8,168
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Hanwha Aerospace Co., Ltd. Business Overview & Revenue Model

Company Description

Hanwha Aerospace Co., Ltd. is globally active in the design, production, and upkeep of engines for a broad spectrum of platforms, encompassing commercial and military aircraft, helicopters, and marine vessels. The company supplies critical components...

Hanwha Aerospace Co., Ltd. Financial Statement Overview

Summary

Income statement strength (score 78) is supported by sharp multi-year revenue scaling and solid TTM profitability (operating margin ~12.6%, net margin ~6.7%). Offsetting this are elevated leverage on the balance sheet (score 62; debt-to-equity ~1.33 with rising absolute debt) and weaker cash conversion (cash flow score 55; TTM free cash flow covers ~26% of net income), which increases financial risk and reduces quality of earnings.

Income Statement

78Positive

Balance Sheet

62Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.95T	26.70T	11.24T	7.89T	7.06T	5.54T
Gross Profit	5.92T	5.45T	2.80T	1.35T	1.43T	943.93B
EBITDA	4.75T	3.57T	3.22T	1.62T	543.20B	589.16B
Net Income	2.02T	1.40T	2.30T	817.51B	195.35B	252.58B
Balance Sheet
Total Assets	58.74T	53.95T	43.34T	19.54T	15.16T	11.05T
Cash, Cash Equivalents and Short-Term Investments	9.23T	7.98T	3.33T	1.90T	3.20T	2.63T
Total Debt	15.90T	12.83T	10.69T	4.17T	3.63T	2.78T
Total Liabilities	38.50T	37.17T	31.97T	14.86T	11.23T	7.11T
Stockholders Equity	12.00T	9.68T	5.00T	3.53T	2.86T	2.89T
Cash Flow
Free Cash Flow	697.34B	2.35T	639.34B	821.12B	1.18T	661.73B
Operating Cash Flow	2.66T	4.06T	1.39T	1.39T	1.52T	990.01B
Investing Cash Flow	-4.82T	-5.40T	-1.37T	-3.06T	-1.22T	-607.07B
Financing Cash Flow	7.12T	6.05T	1.07T	391.83B	216.12B	813.15B

Hanwha Aerospace Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price740000.00

Price Trends

50DMA989820.00Negative

100DMA1008720.00Negative

200DMA1161475.00Negative

Market Momentum

MACD-73079.07Positive

RSI28.06Positive

STOCH19.65Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:012450, the sentiment is Negative. The current price of 740000.00 is below the 20-day moving average (MA) of 856950.00, below the 50-day MA of 989820.00, and below the 200-day MA of 1161475.00, indicating a bearish trend. The MACD of -73079.07 indicates Positive momentum. The RSI at 28.06 is Positive, neither overbought nor oversold. The STOCH value of 19.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:012450.

Hanwha Aerospace Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:012450 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:064350	70Outperform	KRW 8.35T	10.62	―	0.78%	11.60%	13.44%
KR:082740	66Neutral	KRW 2.45T	11.22	―	―	3.34%	140.35%
KR:012450	58Neutral	KRW 35.81T	25.81	―	1.01%	27.93%	-51.70%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:079550	48Neutral	KRW 9.07T	31.72	―	0.50%	25.81%	-6.18%
KR:047810	45Neutral	KRW 9.53T	53.77	―	0.51%	25.49%	6.43%
KR:272210	44Neutral	KRW 11.31T	181.69	―	0.83%	29.87%	-89.56%

* General Sector Average

Performance Comparison

KR:012450 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:012450	Hanwha Aerospace Co., Ltd.	696000.00	-305873.56	-30.53%
KR:047810	Korea Aerospace Industries, Ltd.	97800.00	-9989.73	-9.27%
KR:064350	Hyundai Rotem Co.	76500.00	-152750.81	-66.63%
KR:079550	LIG Defense&Aerospace	416000.00	-104900.88	-20.14%
KR:082740	Hanwha Engine Co., Ltd.	29400.00	-18900.00	-39.13%
KR:272210	Hanwha Systems Co., Ltd.	60500.00	1417.06	2.40%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

Hanwha Aerospace Co., Ltd. AI Stock Analysis