FSS Surprisingly Halts Hanwha Aerospace's Rights Offering Capital Raise Temporarily

• After the market close on 27 March, the Financial Supervisory Service (FSS) surprisingly announced a temporary halt to the 3.6 trillion won rights offering capital raise of Hanwha Aerospace.

• The FSS has requested a correction report to the massive paid-in capital increase securities report submitted by Hanwha Aerospace on 20 March.

• While there could be a short term pop to Hanwha Aerospace's stock tomorrow, we continue remain negative on Hanwha Aerospace over next 1 year mainly due to its stretched valuations.