Hanwha Systems: Stable company structure + Confidence in its vision for the future

The author is an analyst with NH Investment & Securities. He can be contacted at [email protected] – Ed.

Building on stable and sustained growth in its existing business, Hanwha Systems has increased its investments in its space development area, including its likely participation in OverAir’s Series B financing round. With Hanwha Systems setting aside an additional US $ 500 million for investment in space development, we look forward to its preemptive advance in the new market.

Smooth sailing: has a stable business structure

Hanwha Systems is expected to post stable earnings supported by its existing business. The Defense division should continue to grow thanks to the fourth activity of tactical information and communication networks and the military satellite communications activity. Benefiting from an easing of Covid-19, the ICT division also places orders with several companies, including its subsidiaries.

Development of the space development activity: to participate in the series B round of OverAir

Hanwha Systems has invested a total of US $ 380 million in four foreign space development companies focused on the areas of urban air mobility (UAM), LEO satellite antennas and LEO satellites.

Recently, he revealed his intention to participate in OverAir’s Series B round. Given Hanwha Systems’ participation in OverAir’s A-Series round, we believe the B-Series event will serve to confirm the success of the company’s previous investment.

Vision for the future: investing more in space development

Hanwha Systems is the most active among national companies in investing in the space development market. With ample cash in reserve for future investments, the company’s previous investment amount ($ 380 million) alone is well above the investment figures of its domestic peers. Even after participating in OverAir’s Series B financing, the company is expected to retain US $ 500 million or more in excess cash, which we believe will be set aside to increase investments in its venture capital subsidiaries or in newly identified venture capital firms.

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