Hanwha Systems (CEO Eoh Seong-cheol) recorded an earnings surprise in the third quarter of 2023 as its export and mass production businesses expanded, driven by the K-defense boom.

Hanwha Systems announced its business results for the third quarter of 2023 on the 30th.

According to this, based on consolidated financial statements, sales recorded 620.8 billion won, a 35.1% increase compared to the same period last year, and operating profit was 37.3 billion won, a 6,800.7% increase compared to the same period last year. Net profit was 41.2 billion won, an increase of 1,495.2% compared to the same period last year.

Hanwha Systems achieved strong results, posting a net profit nearly four times the consensus.

This represents an increase of 161.4 billion won in sales, 36.8 billion won in operating profit, and 38.5 billion won in net profit compared to the same period last year.

Hanwha Systems explained that it showed a clear rebound in performance as export and mass production businesses expanded thanks to the K-defense boom, and as the large-scale new business investments concentrated last year entered the construction and operation phase.

Hanwha Systems' defense division drove surprising results with large-scale projects, including the 4th mass production of the TICN (Tactical Information Communication Network), the mass production of 30mm wheeled anti-aircraft guns, and the mass production of the Military Satellite Communication System-II network control system and ground terminals.

The fact that sales of the Cheongung-II Multifunctional Radar (MFR) for the Medium-Range Surface-to-Air Missile (M-SAM) exported by Hanwha Systems to the United Arab Emirates (UAE) last year have begun to be recorded in earnest also had a positive impact.

Hanwha Systems signed an export contract for the Cheongung-II Multifunctional Radar (MFR) worth approximately $1.1 billion (about 1.3 trillion won at the exchange rate at the time) with the United Arab Emirates (UAE) in January 2022.

The ICT sector is focusing on projects such as the establishment of a joint AI digital textbook platform led by the Korea Textbook Association, the implementation of a sales support system for Shinhan Life FC&GA, and the system integration and Enterprise Resource Planning (ERP) system implementation for Hanwha Aerospace. EBS is also actively developing its metaverse platform 'WeCanvas' and AI-based education platform business.

Hanwha Systems is striving to secure future growth engines by pioneering business areas in its new business sectors that will lead the era of hyper-connectivity, hyper-intelligence, and hyper-convergence. These areas include low-orbit satellite communications, referred to as the "Space Internet," future mobility (UAM), and blockchain-based digital platforms. The company is pursuing participation in the "Commercial Low-orbit Satellite-based Communication System" business by leveraging ONEWeb's satellite network, and is also preparing a hybrid "Maritime Satellite Service (MASS)" that integrates terrestrial networks (LTE).