Corporate Logo(source: hanwhaocean.com)
Hanwha Ocean (042660) is projected to surpass market expectations for operating profit in the second quarter, driven by solid performance in its defense and offshore segments.
In a report released on July 10, Kang Kyung-tae, an analyst at Korea Investment & Securities Co.,Ltd, estimated that Hanwha Ocean’s consolidated revenue for the second quarter would reach 3.2282 trillion won, with operating profit forecast at 275.1 billion won—beating market consensus by 8.8%.
While the commercial ship division's operating margin is expected to decline slightly due to foreign exchange effects, this is anticipated to be offset by robust results from the defense and offshore businesses.
Looking ahead to the second half, major order inflows are expected in the offshore segment. Hanwha Ocean recently announced investment plans for a floating dock and a 6,500-ton floating crane, which are seen as strategic moves linked to potential offshore plant construction projects. “We have revised our offshore earnings estimates upward, assuming a fourth-quarter order for a floating production facility worth 2 billion dollars,” Kang stated. “In addition, the company is involved in multiple active discussions for projects such as wind turbine installation vessels (WTIVs) and floating production facilities (FPs), indicating significant upside potential in offshore performance.”
The target price for the stock was maintained at 114,000 won. Kang assessed the company’s fair enterprise value at 35.5 trillion won and noted that recent share price corrections have not yet reflected the potential value of Hanwha Ocean’s expansion into the U.S. market.
“As discussions on shipbuilding cooperation with the United States progress in the second half and key legislative proposals introduced earlier this year become more concrete, the company is likely to recover its undervalued potential at a faster pace,” Kang concluded.
*[KOSPI]Hanwha Ocean(042660) is a comprehensive shipbuilding and marine specialized company that constructs various types of vessels such as LNG carriers, tankers, container ships, and LPG carriers, as well as special-purpose vessels including submarines, destroyers, rescue vessels, and patrol boats. Market capitalization is 23.684 trillion won(as of July 9, 2025, closing price).
Corporate Logo(source: hanwhaocean.com)
Hanwha Ocean (042660) is projected to surpass market expectations for operating profit in the second quarter, driven by solid performance in its defense and offshore segments.
In a report released on July 10, Kang Kyung-tae, an analyst at Korea Investment & Securities Co.,Ltd, estimated that Hanwha Ocean’s consolidated revenue for the second quarter would reach 3.2282 trillion won, with operating profit forecast at 275.1 billion won—beating market consensus by 8.8%.
While the commercial ship division's operating margin is expected to decline slightly due to foreign exchange effects, this is anticipated to be offset by robust results from the defense and offshore businesses.
Looking ahead to the second half, major order inflows are expected in the offshore segment. Hanwha Ocean recently announced investment plans for a floating dock and a 6,500-ton floating crane, which are seen as strategic moves linked to potential offshore plant construction projects. “We have revised our offshore earnings estimates upward, assuming a fourth-quarter order for a floating production facility worth 2 billion dollars,” Kang stated. “In addition, the company is involved in multiple active discussions for projects such as wind turbine installation vessels (WTIVs) and floating production facilities (FPs), indicating significant upside potential in offshore performance.”
The target price for the stock was maintained at 114,000 won. Kang assessed the company’s fair enterprise value at 35.5 trillion won and noted that recent share price corrections have not yet reflected the potential value of Hanwha Ocean’s expansion into the U.S. market.
“As discussions on shipbuilding cooperation with the United States progress in the second half and key legislative proposals introduced earlier this year become more concrete, the company is likely to recover its undervalued potential at a faster pace,” Kang concluded.
*[KOSPI]Hanwha Ocean(042660) is a comprehensive shipbuilding and marine specialized company that constructs various types of vessels such as LNG carriers, tankers, container ships, and LPG carriers, as well as special-purpose vessels including submarines, destroyers, rescue vessels, and patrol boats. Market capitalization is 23.684 trillion won(as of July 9, 2025, closing price).