Corporate Logo(source: hanwhaocean.com)
DS Investment & Securities announced on May 7 that it has significantly raised its earnings forecasts for Hanwha Ocean (042660), lifting the target price from 100,000 won to 120,000 won. The firm maintained its “Buy” investment rating.
The operating profit estimate for 2025 was revised up from 70.8 billion won to 115 billion won, while the forecast for 2026 was increased from 103.8 billion won to 160.1 billion won.
Analyst Yang Hyung-mo attributed the company’s stronger-than-expected first-quarter results to improved productivity, stating, “Hanwha Ocean has entered a definitive upward earnings cycle.”
He noted that “low-price orders from 2022 accounted for nearly 80% of deliveries in the first quarter, but that share is expected to drop to 42% by the fourth quarter. As the volume of shipbuilding shifts toward higher-priced orders from 2024, with a relatively smaller portion from mid-priced 2023 contracts, earnings are likely to improve significantly in the fourth quarter.”
On the company’s offshore business, Yang commented on the Floating Liquefied Natural Gas (FLNG) segment, saying, “The leading competitor in this near-monopolistic space has limited capacity to take new orders. As the only other shipbuilder with a proven FLNG construction track record, Hanwha Ocean is well positioned to secure new contracts and re-enter the market.”
He also pointed to the reemergence of the Floating Production Storage and Offloading (FPSO) market, stating, “The sector is reopening, and due to ongoing U.S.–China tensions, some buyers may be compelled to place orders with a Korean shipbuilder like Hanwha Ocean.”
*[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 24.176 trillion (as of May 2, 2025, closing price).
Corporate Logo(source: hanwhaocean.com)
DS Investment & Securities announced on May 7 that it has significantly raised its earnings forecasts for Hanwha Ocean (042660), lifting the target price from 100,000 won to 120,000 won. The firm maintained its “Buy” investment rating.
The operating profit estimate for 2025 was revised up from 70.8 billion won to 115 billion won, while the forecast for 2026 was increased from 103.8 billion won to 160.1 billion won.
Analyst Yang Hyung-mo attributed the company’s stronger-than-expected first-quarter results to improved productivity, stating, “Hanwha Ocean has entered a definitive upward earnings cycle.”
He noted that “low-price orders from 2022 accounted for nearly 80% of deliveries in the first quarter, but that share is expected to drop to 42% by the fourth quarter. As the volume of shipbuilding shifts toward higher-priced orders from 2024, with a relatively smaller portion from mid-priced 2023 contracts, earnings are likely to improve significantly in the fourth quarter.”
On the company’s offshore business, Yang commented on the Floating Liquefied Natural Gas (FLNG) segment, saying, “The leading competitor in this near-monopolistic space has limited capacity to take new orders. As the only other shipbuilder with a proven FLNG construction track record, Hanwha Ocean is well positioned to secure new contracts and re-enter the market.”
He also pointed to the reemergence of the Floating Production Storage and Offloading (FPSO) market, stating, “The sector is reopening, and due to ongoing U.S.–China tensions, some buyers may be compelled to place orders with a Korean shipbuilder like Hanwha Ocean.”
*[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 24.176 trillion (as of May 2, 2025, closing price).