[Click e-Stock] "Hanwha Ocean, High-Profit Commercial Ship Sales Recognition"

On April 29, Daishin Securities raised its target price for Hanwha Ocean from 90,000 won to 100,000 won, stating that the company's profitability is expected to improve further in the second half of this year.

In the first quarter of this year, Hanwha Ocean posted consolidated sales of 3.1431 trillion won and operating profit of 258.6 billion won. These figures represent increases of 37.6% and 388.5%, respectively, compared to the same period last year.

Lee Jini, a researcher at Daishin Securities, stated, "Operating profit increased by 53% compared to the previous quarter," explaining that "this was due to a reduced proportion of low-priced container ship orders being recognized as sales, as well as an increased share of high value-added vessels such as LNG carriers." She added, "The proportion of the first batch of Qatar vessels, which have relatively lower margins, is expected to account for about 19-20% of annual sales. The second batch is expected to be reflected from the second half of the year, so profitability should gradually improve as the year progresses."

Lee also noted, "With expansion investments, commercial ship production capacity can be increased from the current 36-40 vessels to 40-44.5 vessels," predicting that "construction efficiency will be significantly improved." She further analyzed, "The Korea Development Bank will sell its 19.5% stake. Although a short-term stock price adjustment is inevitable, the performance-driven growth momentum of the shipbuilding industry remains intact."