[Edaily Reporter Kim Hyung-il ] NH INVESTMENT & SECURITIES analyzed that major changes to the corporate governance structure of Hanwha(000880)—including a spin-off and a paid-in capital increase by a subsidiary—have been finalized, and maintained its “Buy” investment rating and target price of 180,000 won.

On the 22nd, Lee Seung-yeon, an analyst at NH INVESTMENT & SECURITIES, stated, “Major changes to the corporate governance structure, such as the spin-off and the paid-in capital increase by the subsidiary, have been completed,” adding, “Following the announcement of the spin-off, the conglomerate discount has narrowed somewhat due to portfolio simplification.” She further noted, “The conglomerate discount has narrowed somewhat due to the simplification of the portfolio following the spin-off,” adding, “The current stock price is trading at a 55.7% discount to net asset value (NAV).”

She projected that Hanwha’s primary cash flows would not change significantly following the spin-off. She explained that cash flows are generated through brand licensing revenue, dividend income, and core businesses such as construction and global operations. The number of major subsidiaries has also been reduced to HANWHA AEROSPACE(012450), HANWHA SOLUTIONS(009830), and HANWHA LIFE INSURANCE(088350).

Consequently, HANWHA AEROSPACE’s share of Hanwha’s enterprise value (EV) has risen to 69%. The analyst noted that as HANWHA AEROSPACE’s share of enterprise value has increased, its correlation with Hanwha’s stock price has also strengthened.

However, the debt burden resulting from participation in capital increases by subsidiaries has increased. Hanwha participated in capital increases for HANWHA AEROSPACE in 2025 and HANWHA SOLUTIONS in 2026, and its separate net debt—reflecting the HANWHA SOLUTIONS capital increase and other factors—has expanded to approximately 5.5 trillion won.

The analyst expects the company to strengthen its cash flow and reduce debt in the future through increased brand licensing revenue and dividend income, as well as the resumption of the Bismayah New City Project (BNCP) in Iraq within the construction division.

The analyst stated, “We anticipate that momentum—such as the resumption of the BNCP project in Iraq and further expansion of shareholder returns—will be necessary to reduce the company’s internal discount rate going forward.” He added, “Considering the implementation of governance-related policies, such as the mandatory adoption of the cumulative voting system and the strengthening of the 3% rule for the appointment of audit committee members, there is room for the discount rate to be reduced further.”

Meanwhile, Hanwha has set a minimum dividend per share (DPS) of 1,000 won as part of its dividend policy.