# Hanwha Aerospace (012450.KO)

Canonical: https://gigainvestors.com/s/012450.KO

Analysis as of: 2026-10-16T07:34:12.073Z. Financial observations: FY2000–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 824,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 507,356.19 per share, central KRW 678,824.88 per share, high KRW 778,671.40 per share. Buy at or below the central value KRW 678,824.88 per share. Valuation as of 2026-10-16T07:34:12.073Z; scenarios are not confidence intervals.

Expected annual return: 8.6% at the stated quote. About 8.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 0.68×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.02×

- FY2018: 0.01×

- FY2019: 0.03×

- FY2020: 0.05×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.08×

- FY2024: 0.15×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.2%

- ROIC, second-lowest year: 2.1%

- Typical minus recent gross margin: -0.3 pp

- Typical gross margin (annual median): 20.2%

- Recent gross margin (lower of latest and 3-year median): 20.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 4.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.1%

- FY2017: 2.1%

- FY2018: 1.9%

- FY2019: 6.4%

- FY2020: 8.6%

- FY2021: 13.7%

- FY2022: 12.0%

- FY2023: 9.9%

- FY2024: 20.7%

- FY2025: 29.8%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 4.79T

- Net income, five-year total: KRW 4.97T

- Return on incremental invested capital: 32.9%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 8.8 pp

- Working capital / revenue, final three-year average: 50.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.16×

- FY2022: 0.82×

- FY2023: 0.94×

- FY2024: 0.96×

- FY2025: 0.96×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.1% vs 20.7%

- Per-share earnings: 621.21 to 28530.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: KRW 44.06T

- Cumulative retained earnings: KRW 4.63T

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 72.8%

- Per-share value change: KRW 28K

- Per-share value, starting three-year median: KRW 621.21

- Per-share value, ending three-year median: KRW 29K

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 1.8%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 7.55T

- Cumulative net income, 10 years: KRW 5.55T

- ROIC, first three-year median: 2.1%

- ROIC, last three-year median: 20.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 6K

- FY2017: KRW -914.58

- FY2018: KRW 621.21

- FY2019: KRW 3K

- FY2020: KRW 2K

- FY2021: KRW 5K

- FY2022: KRW 4K

- FY2023: KRW 18K

- FY2024: KRW 46K

- FY2025: KRW 29K

### accounting: pass

- Sloan accruals: -4.9%

- Receivables to sales index (DSRI): 0.43×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.88×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.77×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.6%

- FY2017: -0.7%

- FY2018: -0.3%

- FY2019: -6.7%

- FY2020: -3.3%

- FY2021: -6.7%

- FY2022: -8.8%

- FY2023: -2.9%

- FY2024: 2.1%

- FY2025: -4.9%

## Holders

## Price story

Down 42% since Apr 2026 · sales +137.6%

Story as of 2026-10-16T09:59:59.529Z; price observation 2026-10-15.

Price needs cash profits to grow 9.3% a year for ten years

### Sales · FY2024–2025

sales +137.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 3.52T 

- FY2017: KRW 4.22T 

- FY2018: KRW 4.45T 

- FY2019: KRW 5.26T 

- FY2020: KRW 5.32T 

- FY2021: KRW 6.42T 

- FY2022: KRW 7.06T 

- FY2023: KRW 7.89T 

- FY2024: KRW 11.24T 

- FY2025: KRW 26.70T 

### Gross margin · FY2025

gross margin 20.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 20.4% 

- FY2017: 18.2% 

- FY2018: 17.9% 

- FY2019: 19.4% 

- FY2020: 20.1% 

- FY2021: 20.2% 

- FY2022: 21.4% 

- FY2023: 18.1% 

- FY2024: 25.5% 

- FY2025: 20.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are KRW 26.7 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2025: revenue 26702901249000; grossProfit 5450460584000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 012450.KO: Hanwha Aerospace Co., Ltd. engages in the development, production, and maintenance of aircraft engines worldwide. The company offers Korea space launch vehicle; satellite services, such as earth observation and satellite communication; fixed and rotary wing engines, guided missile engines, electric propulsion systems, aircraft and missile components, and aircraft engine modules and parts; and artillery systems, armored vehicles, air defense systems, missile and ammunition, manned-unmanned teaming systems, and navigation systems. It also provides marine gas turbine engines and gensets; lithium battery systems; specialty and commercial ships; and offshore plants. In addition, the company offers maintenance, repair, and overhaul services for military engines; and assembly services for engines. Further, it provides energy storage systems; electromechanical actuators; and hydrogen fuel cell for aircrafts. The company was founded in 1977 and is headquartered in Changwon-Si, South Korea.

### Why customers stay

Margins ranged from 18.1% to 25.5% during 2023–25; it earns 9.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2023: grossProfit / revenue = 18.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2024: grossProfit / revenue = 25.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2025: grossProfit / revenue = 20.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); 10-year return on capital observations [[2016,0.05069356715096276],[2017,0.020824653219446963],[2018,0.01862071177258052],[2019,0.06396429424594002],[2020,0.08553464567904433],[2021,0.13674157217171204],[2022,0.11950185890534153],[2023,0.09884435110834147],[2024,0.20660389179255997],[2025,0.29773609403908863]]; median 0.09218949839369289. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 83.1% of cash earnings on expansion; earns 32.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2016: growth capex 0; upkeep 158625243650; owner earnings 37429938190. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2019: growth capex 0; upkeep 153837340010; owner earnings 180592057364. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2020: growth capex 0; upkeep 189391880010; owner earnings 150953361054. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2021: growth capex 0; upkeep 166102879970; owner earnings 294063237488. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2022: growth capex 82037470670; upkeep 262735679000; owner earnings 160707764102. Growth capex / owner earnings = 0.5104760876265533.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2023: growth capex 232082468110; upkeep 339097671000; owner earnings 771327648158. Growth capex / owner earnings = 0.30088700782894773.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2024: growth capex 422686309450; upkeep 330947764000; owner earnings 2216805126648. Growth capex / owner earnings = 0.19067364305907125.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2025: growth capex 1121340527000; upkeep 872741858000; owner earnings 1350028236668.255. Growth capex / owner earnings = 0.8306052396114062.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); Incremental return on capital 0.3289905056150939, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); Dividend observations: [[2016,15939000000],[2017,494952420],[2018,494952420],[2019,7714626080],[2020,17431420590],[2021,43285991540],[2022,35398588400],[2023,50569412000],[2024,119752317850],[2025,195060310000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); FY2025: cash repurchases 509087222242.70276 KRW.

### Are managers owners

Insiders own 36.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 012450.KO SharesStats.PercentInsiders = 36.788 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.073Z); Ten-year compound average after fade. Initial solved rate 0.1213361353442367. Price 824000; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 62,959.34 per share

- 2016-11: KRW 47,219.50 per share

- 2016-12: KRW 42,877.48 per share

- 2017-01: KRW 41,150.54 per share

- 2017-02: KRW 43,321.55 per share

- 2017-03: KRW 46,479.39 per share

- 2017-04: KRW 51,314.82 per share

- 2017-05: KRW 49,291.83 per share

- 2017-06: KRW 43,913.64 per share

- 2017-07: KRW 39,374.26 per share

- 2017-08: KRW 38,288.75 per share

- 2017-09: KRW 32,762.54 per share

- 2017-10: KRW 37,894.02 per share

- 2017-11: KRW 34,785.53 per share

- 2017-12: KRW 35,081.57 per share

- 2018-01: KRW 33,206.61 per share

- 2018-02: KRW 28,765.90 per share

- 2018-03: KRW 29,209.97 per share

- 2018-04: KRW 23,782.45 per share

- 2018-05: KRW 32,713.20 per share

- 2018-06: KRW 23,141.01 per share

- 2018-07: KRW 22,252.87 per share

- 2018-08: KRW 24,670.59 per share

- 2018-09: KRW 25,065.32 per share

- 2018-10: KRW 28,075.13 per share

- 2018-11: KRW 32,022.42 per share

- 2018-12: KRW 32,071.76 per share

- 2019-01: KRW 30,986.26 per share

- 2019-02: KRW 32,515.83 per share

- 2019-03: KRW 33,946.73 per share

- 2019-04: KRW 30,492.85 per share

- 2019-05: KRW 29,506.02 per share

- 2019-06: KRW 32,811.88 per share

- 2019-07: KRW 31,775.72 per share

- 2019-08: KRW 38,387.43 per share

- 2019-09: KRW 41,594.61 per share

- 2019-10: KRW 37,301.93 per share

- 2019-11: KRW 37,943.36 per share

- 2019-12: KRW 34,588.16 per share

- 2020-01: KRW 32,071.76 per share

- 2020-02: KRW 27,137.65 per share

- 2020-03: KRW 20,279.22 per share

- 2020-04: KRW 26,545.55 per share

- 2020-05: KRW 23,979.81 per share

- 2020-06: KRW 24,275.86 per share

- 2020-07: KRW 23,979.81 per share

- 2020-08: KRW 25,460.05 per share

- 2020-09: KRW 25,065.32 per share

- 2020-10: KRW 24,769.27 per share

- 2020-11: KRW 26,052.14 per share

- 2020-12: KRW 28,124.47 per share

- 2021-01: KRW 40,114.37 per share

- 2021-02: KRW 36,413.79 per share

- 2021-03: KRW 40,361.08 per share

- 2021-04: KRW 38,091.39 per share

- 2021-05: KRW 46,183.34 per share

- 2021-06: KRW 46,380.70 per share

- 2021-07: KRW 51,117.46 per share

- 2021-08: KRW 50,229.31 per share

- 2021-09: KRW 49,538.54 per share

- 2021-10: KRW 44,407.06 per share

- 2021-11: KRW 40,114.37 per share

- 2021-12: KRW 47,367.53 per share

- 2022-01: KRW 47,170.16 per share

- 2022-02: KRW 51,314.82 per share

- 2022-03: KRW 51,512.19 per share

- 2022-04: KRW 52,597.69 per share

- 2022-05: KRW 53,189.79 per share

- 2022-06: KRW 48,058.30 per share

- 2022-07: KRW 63,551.43 per share

- 2022-08: KRW 80,327.43 per share

- 2022-09: KRW 60,689.64 per share

- 2022-10: KRW 65,426.40 per share

- 2022-11: KRW 71,643.38 per share

- 2022-12: KRW 72,630.21 per share

- 2023-01: KRW 79,340.61 per share

- 2023-02: KRW 88,814.11 per share

- 2023-03: KRW 97,892.89 per share

- 2023-04: KRW 101,346.77 per share

- 2023-05: KRW 104,701.97 per share

- 2023-06: KRW 125,721.31 per share

- 2023-07: KRW 120,589.83 per share

- 2023-08: KRW 112,695.24 per share

- 2023-09: KRW 103,221.74 per share

- 2023-10: KRW 99,669.17 per share

- 2023-11: KRW 124,241.08 per share

- 2023-12: KRW 122,859.52 per share

- 2024-01: KRW 136,280.32 per share

- 2024-02: KRW 185,029.40 per share

- 2024-03: KRW 201,805.40 per share

- 2024-04: KRW 208,713.17 per share

- 2024-05: KRW 202,298.81 per share

- 2024-06: KRW 246,212.46 per share

- 2024-07: KRW 284,205.16 per share

- 2024-08: KRW 286,178.81 per share

- 2024-09: KRW 293,086.44 per share

- 2024-10: KRW 363,150.87 per share

- 2024-11: KRW 308,382.19 per share

- 2024-12: KRW 322,197.72 per share

- 2025-01: KRW 394,729.21 per share

- 2025-02: KRW 586,172.88 per share

- 2025-03: KRW 618,738.03 per share

- 2025-04: KRW 786,497.95 per share

- 2025-05: KRW 811,000.00 per share

- 2025-06: KRW 848,000.00 per share

- 2025-07: KRW 996,000.00 per share

- 2025-08: KRW 884,000.00 per share

- 2025-09: KRW 1,107,000.00 per share

- 2025-10: KRW 979,000.00 per share

- 2025-11: KRW 852,000.00 per share

- 2025-12: KRW 941,000.00 per share

- 2026-01: KRW 1,300,000.00 per share

- 2026-02: KRW 1,195,000.00 per share

- 2026-03: KRW 1,249,000.00 per share

- 2026-04: KRW 1,417,000.00 per share

- 2026-05: KRW 1,173,000.00 per share

- 2026-06: KRW 995,000.00 per share

- 2026-07: KRW 917,000.00 per share

- 2026-08: KRW 1,102,000.00 per share

- 2026-09: KRW 1,007,000.00 per share

- 2026-10: KRW 839,000.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 21,743.75 per share, central KRW 23,352.29 per share, high KRW 25,493.60 per share

- FY2017: low KRW 16,694.20 per share, central KRW 17,975.20 per share, high KRW 19,680.49 per share

- FY2019: low KRW 31,609.78 per share, central KRW 33,246.42 per share, high KRW 35,425.14 per share

- FY2020: low KRW 37,704.59 per share, central KRW 39,390.12 per share, high KRW 41,633.92 per share

- FY2021: low KRW 88,719.92 per share, central KRW 94,143.09 per share, high KRW 101,362.48 per share

- FY2022: low KRW 106,579.36 per share, central KRW 131,817.79 per share, high KRW 146,514.18 per share

- FY2023: low KRW 107,864.86 per share, central KRW 141,910.71 per share, high KRW 161,735.68 per share

- FY2024: low KRW 167,533.55 per share, central KRW 227,725.84 per share, high KRW 262,775.92 per share

- FY2025: low KRW 469,212.53 per share, central KRW 628,923.73 per share, high KRW 721,923.84 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:02.184Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations