[Market Focus] Hanwha Engine Rises on Expectations of Record-High Orders This Year

Hanwha Engine is on an upward trend. This appears to be influenced by securities firms' analyses predicting record-high orders and earnings growth for the company this year.

As of 10:07 a.m. on the 22nd, Hanwha Engine was trading at 25,050 won, up 650 won (2.66%) from the previous trading day.

On this day, Han Seunghan, a researcher at SK Securities, stated, "Hanwha Engine's first-quarter revenue was 318.2 billion won, up 8.5% year-on-year, and operating profit was 22.3 billion won, an increase of 14.8%." He added, "Operating profit slightly exceeded the market consensus of 20.7 billion won."

In the first quarter alone, the company achieved new orders worth approximately 1.0587 trillion won, already reaching about 64% of last year's annual order volume of 1.649 trillion won. Han explained, "Considering the final delivery schedule for this year's engine contracts, it is estimated that over 90% of the orders are from Chinese shipyards," and pointed out, "This means that orders for engines from Korean shipyards have not even started yet this year."

He said, "There is a very high possibility that the company will achieve a record-high order volume this year," and added, "Engine orders for North American LNG carriers, which will begin in earnest in the second half of the year, are expected to continue into next year. Maintaining a high level of order performance and backlog is possible."

He further commented, "Following short-term growth driven by engine supply shortages in China, the company can achieve mid-term growth due to expanding eco-friendly replacement demand in response to the International Maritime Organization (IMO)'s mid-term measures for ship greenhouse gas reduction." He added, "Long-term growth can also be expected as the aging fleet replacement cycle progresses."