Imagine you had picked up a few Hanwha shares five years ago. Today, you check your portfolio and see a return of over 275%. That’s not just luck—that’s the result of Hanwha’s sharp rise. On May 30, Hanwha closed at 75,500 KRW, up 1.48% for the day. Now, investors everywhere are asking: can this rally continue, or is the stock overheated?
Why Is Hanwha on Every Investor’s Radar?
Hanwha is quickly becoming a household name in the defence sector, and not just in South Korea. After hosting its first Industry Day in Berlin, Hanwha proved it’s aiming far beyond its home market. With a market cap over 5.8 trillion KRW, Hanwha is making a serious statement. But the company’s dividend yield remains modest at just 1.06%. This shows Hanwha prefers investing in growth over paying out large dividends .
The Numbers Every Investor Should Watch
- Closing price on May 30: 75,500 KRW
- 1-year target price: 60,777 KRW (below the current price!)
- 5-year share price increase: +275%
- Forward dividend: 800 KRW per share (1.06%)
- 52-week high: 77,700 KRW
Here’s something to consider: analysts expect a lower price in the next twelve months than today. Does this mean Hanwha is overpriced? Or are analysts missing future opportunities in Europe and elsewhere?
Is Hanwha Overvalued or Still a Buy?
Hanwha doesn’t publish a clear P/E ratio or EPS right now, making classic valuation a challenge. The spectacular price rise is largely thanks to huge export contracts (Poland, Australia) and rising demand across Europe. But if the share price is racing ahead of profits, the risks are clear.
Compared to other defence stocks, Hanwha offers high growth but a low yield. If you want stable dividends, Hanwha may not be your top pick. But if you’re looking for a dynamic growth stock with global ambitions, Hanwha stands out.
A Real Lesson for Investors Everywhere
Whether you’re investing from London, New York, Sydney, or beyond, Hanwha is a prime example of how international defence stocks can benefit from geopolitical tensions. But remember: when analysts’ targets sit below the current price, much optimism is already baked in. A correction could offer a better entry point.
What’s Next for Investors?
Watch Hanwha’s quarterly earnings and export news closely. Don’t chase the price after such a huge rally—wait for a dip or a key contract announcement. Always consider currency risks and potential political changes. That way, you’ll be better positioned to ride the next wave of growth.
What’s your view? Is Hanwha a global growth gem, or is it overpriced after this run-up? Share your thoughts below and follow us for more investor insights!
