Corporate Logo(source: hanwha-engine.com)
Daol Investment & Securities maintained its "BUY" rating on Hanwha Engine(082740) on the 10th, citing that the engine industry is experiencing a supercycle similar to 2005-2007. The firm raised its target price from 20,000 won to 37,000 won, an 85% increase. The stock closed at 24,450 won in the previous session.
Choi Kwang-sik, an analyst at Daol Investment & Securities stated, "In 2024, Hanwha Engine is producing high-priced engines secured in 2022, resulting in an operating margin of 6%. This year, the proportion of exceptionally high-priced orders is expected to rise to 23%, leading to projected revenue of 1.3 trillion won and an operating profit of 98.3 billion won, reflecting steady growth."
Choi highlighted that the post-Panamax container newbuilding prices surged by 30% between 2023 and 2024, emphasizing that engine prices tend to move in tandem with newbuilding prices, often rising even more during boom periods. He noted, "The high-priced orders secured in 2024 will account for 26% of sales in 2026 and reach 100% by 2027."
Regarding Hanwha Engine's 80.2 billion won facility investment, Choi explained that it aims to expand high-pressure, large-engine production capacity for mega container ships. He also pointed out that Hanwha Engine secured 640 billion won in orders from China in 2024, and has already reached 900 billion won in Chinese orders this year.
Choi further noted, "In 2024, China's private shipbuilders secured orders for 192 large container vessels, ensuring a strong order backlog. The engine industry is currently experiencing a supercycle on par with 2005-2007."
*[KOSPI]Hanwha Engine(082740) is a comprehensive engine production specialist, currently engaging in ship engine manufacturing, parts sales, diesel power generation, and environmental pollution prevention facilities(SCR, selective catalytic reduction) as its main businesses. Its market capitalization is 2.0403 trillion won(as of March 7, 2025, closing price).
Corporate Logo(source: hanwha-engine.com)
Daol Investment & Securities maintained its "BUY" rating on Hanwha Engine(082740) on the 10th, citing that the engine industry is experiencing a supercycle similar to 2005-2007. The firm raised its target price from 20,000 won to 37,000 won, an 85% increase. The stock closed at 24,450 won in the previous session.
Choi Kwang-sik, an analyst at Daol Investment & Securities stated, "In 2024, Hanwha Engine is producing high-priced engines secured in 2022, resulting in an operating margin of 6%. This year, the proportion of exceptionally high-priced orders is expected to rise to 23%, leading to projected revenue of 1.3 trillion won and an operating profit of 98.3 billion won, reflecting steady growth."
Choi highlighted that the post-Panamax container newbuilding prices surged by 30% between 2023 and 2024, emphasizing that engine prices tend to move in tandem with newbuilding prices, often rising even more during boom periods. He noted, "The high-priced orders secured in 2024 will account for 26% of sales in 2026 and reach 100% by 2027."
Regarding Hanwha Engine's 80.2 billion won facility investment, Choi explained that it aims to expand high-pressure, large-engine production capacity for mega container ships. He also pointed out that Hanwha Engine secured 640 billion won in orders from China in 2024, and has already reached 900 billion won in Chinese orders this year.
Choi further noted, "In 2024, China's private shipbuilders secured orders for 192 large container vessels, ensuring a strong order backlog. The engine industry is currently experiencing a supercycle on par with 2005-2007."
*[KOSPI]Hanwha Engine(082740) is a comprehensive engine production specialist, currently engaging in ship engine manufacturing, parts sales, diesel power generation, and environmental pollution prevention facilities(SCR, selective catalytic reduction) as its main businesses. Its market capitalization is 2.0403 trillion won(as of March 7, 2025, closing price).