Corporate Logo(source: hanwhaocean.com)
SK Securities stated on July 9 that Hanwha Ocean (042660) is expected to deliver second-quarter earnings that surpass market expectations, despite the negative impact of a weaker exchange rate. The brokerage maintained its ‘Buy’ rating and target price of 97,000 won.
According to analyst Han Seung-han at SK Securities, Hanwha Ocean’s consolidated revenue for the second quarter is projected to reach 3.3171 trillion won, up 30.8% year-on-year, with operating profit turning positive at 279.3 billion won—exceeding the consensus estimate of 254.3 billion won.
Han explained that this strong performance is likely due to an increased share of high-priced ship deliveries following the completion of low-margin orders, as well as improved production processes. These factors have offset the unfavorable foreign exchange impact.
While Hanwha Ocean has secured approximately 2.75 billion dollars in orders so far this year—somewhat trailing its peers—the company is reportedly engaged in negotiations for multiple container and tanker ship contracts. Han projected that large-scale orders for LNG carriers (LNGCs) from North America are expected to begin in earnest during the second half of this year or by early next year at the latest, which would support sustained earnings growth through 2028 and beyond.
In the offshore segment, Han noted that Hanwha Ocean is actively participating in several FPSO project bids and is highly likely to secure at least one FPSO order by the end of this year. Additionally, he highlighted the company’s recent win of a third U.S. Navy MRO (maintenance, repair, and overhaul) contract for the USS Charles Drew, following previous awards for the USS William Charette and USS Yukon. This makes Hanwha Ocean the only Korean shipbuilder with a track record of U.S. Navy MRO projects, raising expectations for future U.S. naval orders.
Han further stated that in the context of shipbuilding cooperation between the Korean and U.S. governments, the Trump administration is seeking to rebuild America’s shipbuilding industry centered on domestic yards. Given that Hanwha Group has already made substantial investments through its affiliates, Hanwha Ocean is well-positioned to generate profits without incurring significant additional capital expenditures. As such, it is expected to be one of the biggest beneficiaries of forthcoming U.S. shipbuilding support policies.
Regarding the U.S. government’s recent approval of Hanwha Group’s acquisition of Austal, Han commented that approval from the Australian government is also highly likely. He emphasized that based on the operational foundation of both Philadelphia Shipyard and Austal USA, Hanwha Ocean is well placed to secure steady long-term orders for both U.S. Navy vessels and commercial ships, leading to a potential re-rating of the stock.
*[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 23.502 trillion won (as of July 8, 2025, closing price).
Corporate Logo(source: hanwhaocean.com)
SK Securities stated on July 9 that Hanwha Ocean (042660) is expected to deliver second-quarter earnings that surpass market expectations, despite the negative impact of a weaker exchange rate. The brokerage maintained its ‘Buy’ rating and target price of 97,000 won.
According to analyst Han Seung-han at SK Securities, Hanwha Ocean’s consolidated revenue for the second quarter is projected to reach 3.3171 trillion won, up 30.8% year-on-year, with operating profit turning positive at 279.3 billion won—exceeding the consensus estimate of 254.3 billion won.
Han explained that this strong performance is likely due to an increased share of high-priced ship deliveries following the completion of low-margin orders, as well as improved production processes. These factors have offset the unfavorable foreign exchange impact.
While Hanwha Ocean has secured approximately 2.75 billion dollars in orders so far this year—somewhat trailing its peers—the company is reportedly engaged in negotiations for multiple container and tanker ship contracts. Han projected that large-scale orders for LNG carriers (LNGCs) from North America are expected to begin in earnest during the second half of this year or by early next year at the latest, which would support sustained earnings growth through 2028 and beyond.
In the offshore segment, Han noted that Hanwha Ocean is actively participating in several FPSO project bids and is highly likely to secure at least one FPSO order by the end of this year. Additionally, he highlighted the company’s recent win of a third U.S. Navy MRO (maintenance, repair, and overhaul) contract for the USS Charles Drew, following previous awards for the USS William Charette and USS Yukon. This makes Hanwha Ocean the only Korean shipbuilder with a track record of U.S. Navy MRO projects, raising expectations for future U.S. naval orders.
Han further stated that in the context of shipbuilding cooperation between the Korean and U.S. governments, the Trump administration is seeking to rebuild America’s shipbuilding industry centered on domestic yards. Given that Hanwha Group has already made substantial investments through its affiliates, Hanwha Ocean is well-positioned to generate profits without incurring significant additional capital expenditures. As such, it is expected to be one of the biggest beneficiaries of forthcoming U.S. shipbuilding support policies.
Regarding the U.S. government’s recent approval of Hanwha Group’s acquisition of Austal, Han commented that approval from the Australian government is also highly likely. He emphasized that based on the operational foundation of both Philadelphia Shipyard and Austal USA, Hanwha Ocean is well placed to secure steady long-term orders for both U.S. Navy vessels and commercial ships, leading to a potential re-rating of the stock.
*[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 23.502 trillion won (as of July 8, 2025, closing price).