Hanwha Systems price target of 12ten-thousand won proposed; KT&G emphasizes shareholder returns

KB Securities rated Hanwha Systems as a company that controls key components and software for weapons systems. The report said that it serves as the 'brain' determining the performance of weapons such as radars and combat systems. The report was written by researcher Jeong Dong-ik.

KB Securities presented a 'Buy' investment opinion on Hanwha Systems. The report presented a target price of 12ten-thousand won. The company's listing number is 272210.

The report recommended KT&G as a defensive stock amid high volatility in the stock market. The report said that KT&G's shareholder return rate is close to 100%. Shareholder return policies, including dividends and share buybacks, were cited as the basis for the recommendation.

Regarding Hite Jinro, the report said that beer sales were sluggish due to the decline in company dinner culture. It noted that the target price was lowered as a result. However, it recorded expectations for a rebound in operating profit in the second half, driven by cost reductions and the effects of the Vietnam plant’s operations.

These reports summarized the key points of each company. Hanwha Systems emphasized its core components and software capabilities in the defense industry value chain. KT&G was evaluated mainly on shareholder returns, while Hite Jinro was assessed based on its cost structure and the contribution of overseas production.