Its stock price at 0.8 times its price book-value ratio is as low as when the ownership changed to Hanwha from Samsung in 2015, said analyst Park Won-jae. 

Its earnings outlook, however, is not bright, according to the analyst who estimated that its revenue in the first quarter will rise 6.2 percent on-year to 822.2 billion won while operating profit will plunge 75.2 percent to 2.8 billion won.

Sales from defense sector will decline and securities cameras and aircraft engines and parts will continue to struggle, pointed out Park.
Its stocks are surely underpriced but it will not be able to improve significantly in the short term, he added.

By Hwang You-mee (glamazon@heraldcorp.com)

Hanwha Techwin is undervalued at the level of 2015, said Mirae Asset Daewoo on March 19, maintaining a “buy” recommendation and 37,400 won (US$34.90) target price.