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Hanwha Rivaling German Company for 10 Trillion Won Australian Armored Vehicle Contract

Hanwha Aerospace's Redback armored vehicle is on the verge of being exported to Australia. The Australian government is expected to announce its decision on the purchase of the Redback within the next few days. Originally, the project aimed to procure 450 armored vehicles, but due to changes in government and budget reorganization, the number has been reduced to 129 vehicles with a budget of approximately 10 trillion won. The Australian Ministry of Defense's LAND 400 project is focused on replacing old wheeled and tracked armored vehicles with new models. The Redback, developed specifically for the Australian market, and Rheinmetall's Lynx armored vehicle are the final candidates for the project.

The Redback, named after the redback spider found in Australia, weighs 42 tons and has a maximum speed of 65 kph. It is equipped with a 30 mm machine gun and can carry up to 12 people. The Lynx, on the other hand, weighs 44 tons and has a maximum speed of 65-70 kph. Both vehicles meet the performance requirements, according to military sources. Previously, the domestic defense industry expected the Redback to be the preferred choice, but with the project's reduced scale and delayed announcement, there are concerns about Korea's chances of winning the order. Hanwha Aerospace has been investing in a production facility in Australia in anticipation of the Redback's successful export.

While Hanwha Aerospace awaits the decision on the Redback, POSCO Future M, a leading company in the battery materials industry, has experienced a change in its valuation method. The company's number of mid/long-term supply contracts has been increasing due to greater competition in the electrification sector. As a result, the company's capacity and earnings forecasts for 2030 have been revised upward. To reflect these changes, a discounted cash flow (DCF) valuation method is being used. The fair market cap for POSCO Future M is estimated to be W44tn with a target price of W560,000. However, the rating has been downgraded to Hold due to limited upside potential.



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