Hanwha Breaking Up Techwin

By: Brian Karas, Published on May 02, 2017

Hanwha is breaking up Techwin, spinning off multiple business units in order to concentrate on what the company says will be its two main areas of focus: aircraft engines, and security products.

Hanwha Techwin security group says they are bullish about this move and that it will help them to thrive and grow.

In this note, we share feedback from Hanwha Techwin, examine the move and its potential.

****** ** ******** ** Techwin, ******** *** ******** business ***** ** ***** to *********** ** **** the ******* **** **** be *** *** **** areas ** *****: ******** engines, *** ******** ********.

****** ******* ******** ***** says **** *** ******* about **** **** *** that ** **** **** them ** ****** *** grow.

** **** ****, ** share ******** **** ****** Techwin, ******* *** **** and *** *********.

[***************]

Hanwha ***** / ****** ******* ********

************ ***** **** ***, *******, ****** *********, *** industrial ********* **** ****** subsidiaries ** ****** *******, ****** * ********** of ****** *****, ***** *** ********** ******** units ** *******/*********, *********, and ************, ***** ******. Statements **** ****** ********** to ****, *** ** Korean ********** ******** **** breakup, ***** **** **** is ***** **** ** allow **** ******** **** to ** **** ********* and *******.

***** ******** *** ******** for ********** ** **** 1, ****, ** ***** time *** ****** ******* parent ******* **** ** left **** * ******** making ******** *******, *** the ******** ******** (****** Techwin ***** ** **** there **** **** ** robotics ******** ** ****).

Aircraft ******* ** ** ******* *****

* ****** **** **** covering *** ******** ****** **** ****** ******* "**** *********** ** *** aircraft ****** ******** ***** the *****".

Security **** ***

**** **** **** **** on ** ***** ** anonymous ****** ******* ******** as ******* "*** ******* ** ******* * plan ** ***** *** list *** ******** ******** later, *** **** ***** not ****** *** **** soon." ****** ******* ********* to IPVM **** **** ** being **********.

* ******** **** ****-*** has *** ********* ** be *** **** ******* if ** ****** ******** to ***** ** ******** and *** ** *********** by ***** ********* ********** (like ******** *******).

Hanwha ******** ******** ********** / $*** ******* **********

****** ******* **** **** that **** *** ********** resources ** **** *** security ********. ******'* $**** Vietnam ************* ********* *** provided ** ** ******* of *** *******'* ********** ** security, ****** ******** ***** ** *** expected ** ** ********* until ****, *** **** be * $*** ******* investment. **** ******** **** have * ********** ******** of * ******* *****, increasing ****** *******'* ***** video ************ ******** ** 8 ******* *****. ** particular, ****** **** **** that **** **** **** them ****** **** *** fast ******* ***** ****** and **** ******* ********** will ** ** *********** as *****, **** * cost ***********.

Security ******** *******

** *** ******** ****, spinning *** *** *******, energy *** ********** ********* units **** ****** ******* reduces *** ********** *** spread ** ********* **** the ********* ********. ** the ******** ****, *** combination ** ******** ******* and ******** ******** ** still *** *************.

*******, **** **** ***** that ****** ** ******* about ******* ***** ******* businesses **** *******, ***** is * **** *****. And ** * ****** Techwin ******** **** ****-*** would *****, **** ***** be ********* ******** *** their *****.

*** *** ***** *** options *****, *** ****** ******* Techwin ** ***** ******* with*** ********** ** ****** / ****** ** *** 'Samsung' ******** *** *** **** known ****** ***. *** ******* of ********* ******* * ******, which ****** ****, ****** **** ** offset *** ***** ****** somewhat.

** ** **** ** be ******* **** *** outcome **** ** *** Hanwha *** ********* ****** continue ** ******* **** other ********* ****** ********* make *** *** *** Techwin ******** ******** *******.

Comments (8)

John Honovich

IPVM | 05/02/17 02:21pm

Btw, fun fact - Hanwha owns 32.4% of Techwin but controls Techwin.

The Chinese government 'only' owns 42% of Hikvision and, yes, they control Hikvision.

Undisclosed #1

In reply to John Honovich | 05/02/17 02:38pm

...Hanwha owns 32.4% of Techwin but controls Techwin.

Don't tell Elliot Management...

John Honovich

IPVM | In reply to Undisclosed #1 | 05/02/17 02:43pm

Just for clarity for others. Elliot Management refers to the hedge fund that bought a minority (~11%) of Axis stock ~2 years ago when Canon acquired Axis. At that time, Canon 'only' had 84% of the shares.

Canon absolutely 'owns' Axis but Axis has not been formally delisted from the stock exchange and, as a benefit to the industry, Axis financials are still public.

Undisclosed #1

In reply to John Honovich | 05/02/17 03:10pm

Also recently going after Techwin's former owner, Samsung in Cross Hairs of American Hedge Fund

Undisclosed Manufacturer #3

In reply to John Honovich | 05/03/17 12:36pm

Unlike Axis, Techwin/HIK are listed on public stock market, it's common that a major shareholder only takes 30~40%.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #3 | 05/03/17 12:51pm

Unlike Axis, Techwin/HIK are listed on public stock market

Axis was and is listed on a public stock market (Stockholm Axis:AB stock info).

Undisclosed Integrator #2

05/02/17 08:36pm

Security business will not be spun off anytime soon due to the operating cost. If the security business unit became its own entity, it will not be able to absorb all the cost of operating and keep its head above the water and with all the new technology that is comeing out from security industry in terms of robotics and AI, mothership should keep it close to styay close to the technology trend.

John Honovich

IPVM | 05/02/17 10:08pm

If they do spin off the security business, may I recommend dropping the Techwin name and going with Hanwha Wisenet.

Of course, the best would be dropping the Hanwha name as well but I don't think that's an option.

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