Expanding Space Development Business
The author is an analyst of NH Investment & Securities. He can be reached at jinmyung.choi@nhqv.com. -- Ed.
Building upon sustained stable growth at its existing businesses, Hanwha Systems has expanded investment in its space development domain, including its likely participation in OverAir’s Series B funding round. With Hanwha Systems setting aside an additional US$500mn for space development investment, we favorably view its pre-emptive advance into the new market.
Smooth sailing: Boasts stable business structure
Hanwha Systems is forecast to display stable earnings backed by its existing businesses. The defense division is to report continued growth from the fourth tactic information and communications network business and the military satellite communications business. Benefitting from an easing of Covid-19, the ICT division is also giving orders to multiple firms, including its affiliates.
Expanding space development business: To participate in OverAir’s series B funding round
Hanwha Systems has invested a total of US$380mn in four foreign space development ventures focused on the areas of urban air mobility (UAM), LEO satellite antennas, and LEO satellites.
Recently, it has revealed its intention to participate in OverAir’s series B funding round. Given Hanwha Systems’ participation in OverAir’s series A funding round, we believe the Series B event will serve to confirm the success of the company’s prior investment.
Vision for future: To invest more in space development
Hanwha Systems is the most active among domestic companies in investment in the space development market. With ample cash holdings in store for future investment, the company’s previous investment amount (US$380mn) alone is far above the investment numbers at domestic peers. Even after its participation in OverAir’s Series B funding, the firm should remain with US$500mn or more in surplus cash, which we believe will be set aside for expanding investment in its venture subsidiaries, or investment in newly-identified venture companies.