Shinhan Investment Corporation said on Feb. 28 that the takeover of Samsung Techwin could stabilize Hanwha's stock.
Song In-chan, an analyst at Shinhan Investment Corp., said, “The stock stabilization of Hanwha would depend upon the soft landing of the takeover of Samsung Techwin. Considering the cashable assets that the company currently possess, additional funds of 300 billion won [US$272.8 million] would be needed by June.”
The analyst predicted that Hanwha would turn a net profit this year. Song said, “The net profits of dominant stockholders are expected to reach 264.1 billion won [US$240.16 million], turning a profit this year. Accordingly, its own business will grow consistently. With the recent merger with Hanwha TechM, sales in the manufacturing sector will increase by 98.2 percent, while its operating profits will increase by 59.8 percent.”
Hanwha’s net loss in the fourth quarter last year amounted to 124.2 billion won (US$112.94 million), increasing the deficit range from the previous year. It is the result that Hanwha Life Insurance’s restructuring cost of 120 billion won (US$109.12 million) and reflecting the minimum guaranteed reserve of variable life insurance of 130 billion won (US$118.21 million).
Song said, “The fines from the Korea Fair Trade Commission, 51.7 billion won [US$47.01 million] in the gun power sector and 8.4 billion won [US$7.64 million] in the trading sector, Hanwha Engineering & Construction Corp.’s cost of interest from project financing of 60 billion won [US$54.56 million], the cost balancing losses overseas of 40 billion won [US$36.37 million] and its losses in the trading sector of 21 billion won [US$19.1 million] are reflected as well.”