On the 20th, SK Securities downgraded its investment opinion on Hanwha Ocean from 'Buy' to 'Neutral,' stating that while order expectations are expanding, it will take time for them to materialize. The target price was raised from 34,000 KRW to 43,000 KRW.
Han Seunghan, a researcher at SK Securities, explained, "Since the acquisition by Hanwha Group, order expectations have increased in the merchant ship, offshore plant, and defense sectors, but these expectations alone are somewhat insufficient to explain the current stock price level."
SK Securities forecasted Hanwha Ocean's Q2 performance to show sales of 2.034 trillion KRW, a 71.8% increase compared to the same period last year, and an operating loss of 25 billion KRW, indicating continued losses. The researcher stated, "It is estimated that the reduction in fixed costs per sales unit due to increased construction volume and the beginning of revenue recognition from some liquefied natural gas carriers (LNGCs) have contributed. Accordingly, the deficit is expected to decrease compared to Q1 this year, but significant profit improvement effects will appear from the second half."
They expressed that it will take time for order expectations to materialize. The researcher said, "Hanwha Ocean's order achievement rate compared to this year's target is the lowest among the three major domestic shipbuilders, but this is due to a selective order strategy focused on profitability. Starting with the escort ship order on the 14th, there is sufficient expectation for special ship orders; however, since there are no visible developments yet regarding multiple special ship projects, including the Canadian submarine replacement project, it will take time for these expectations to materialize."
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