Corporate Logo(source: hanwhaocean.com)
NH Investment & Securities has raised its target price for Hanwha Ocean (042660) by 13.6% to 125,000 won, citing stronger-than-expected profitability in its commercial shipbuilding segment. The brokerage maintained its "Buy" rating on the stock.
Jeong Yeon-seung, an analyst at NH Investment & Securities, stated on July 30, “The second-quarter results reflect higher-than-anticipated profitability from previously secured commercial ship orders.” He added that operating profit estimates for 2025 through 2027 have been revised upward by 27%, 21%, and 10%, respectively.
Hanwha Ocean reported second-quarter revenue of 3.29 trillion won, up 29.9% from the same period last year. Operating profit came in at 371.7 billion won, marking a return to the black.
Jeong explained, “Most low-margin vessels have already been delivered, and with the current foreign exchange rate higher than at the time of order placement, profitability—particularly in LNG carriers—has improved.” He noted that while exchange rate volatility remains a risk, stabilized input costs, including steel prices, along with improved productivity and a higher proportion of high-margin vessels, are expected to support solid third-quarter earnings.
He further noted, “Shipbuilding is likely to be used as a strategic leverage point in the ongoing tariff negotiations between the United States and South Korea. Hanwha Group has already secured a degree of U.S. assets through proactive investment.” He concluded that following the outcome of the tariff negotiations, the company has strong potential to expand its commercial and naval shipbuilding businesses, which could support further upside in its valuation.
*[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 29.721 trillion won(as of July 29, 2025, closing price).
Corporate Logo(source: hanwhaocean.com)
NH Investment & Securities has raised its target price for Hanwha Ocean (042660) by 13.6% to 125,000 won, citing stronger-than-expected profitability in its commercial shipbuilding segment. The brokerage maintained its "Buy" rating on the stock.
Jeong Yeon-seung, an analyst at NH Investment & Securities, stated on July 30, “The second-quarter results reflect higher-than-anticipated profitability from previously secured commercial ship orders.” He added that operating profit estimates for 2025 through 2027 have been revised upward by 27%, 21%, and 10%, respectively.
Hanwha Ocean reported second-quarter revenue of 3.29 trillion won, up 29.9% from the same period last year. Operating profit came in at 371.7 billion won, marking a return to the black.
Jeong explained, “Most low-margin vessels have already been delivered, and with the current foreign exchange rate higher than at the time of order placement, profitability—particularly in LNG carriers—has improved.” He noted that while exchange rate volatility remains a risk, stabilized input costs, including steel prices, along with improved productivity and a higher proportion of high-margin vessels, are expected to support solid third-quarter earnings.
He further noted, “Shipbuilding is likely to be used as a strategic leverage point in the ongoing tariff negotiations between the United States and South Korea. Hanwha Group has already secured a degree of U.S. assets through proactive investment.” He concluded that following the outcome of the tariff negotiations, the company has strong potential to expand its commercial and naval shipbuilding businesses, which could support further upside in its valuation.
*[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 29.721 trillion won(as of July 29, 2025, closing price).