[Market Focus] Hanwha Engine Rises 4% on Securities Firms' Target Price Upgrades

On January 19, Hanwha Engine showed strong performance in early trading. This comes as securities firms simultaneously raised their target prices.

As of 9:31 a.m. on this day, Hanwha Engine was trading at 55,600 won, up 2,600 won (4.91%) from the previous trading day.

It is interpreted that investors are flocking to Hanwha Engine after securities firms raised their annual earnings estimates and target prices for the company.

Korea Investment & Securities maintained its buy rating on Hanwha Engine in a report released on this day and raised its target price by 13% from the previous level to 61,000 won.

Kang Kyungtae, a researcher at Korea Investment & Securities, explained, "Hanwha Engine will deliver 120 low-speed engines in 2026. Despite a decrease in the number of deliveries compared to 2025, revenue from low-speed engines in 2026 will increase by 12.7%. This is a result of the rise in average selling price (ASP)."

On January 16, Bae Giyeon, a researcher at Meritz Securities, raised the target price to 59,000 won, citing the following reasons: first, short lead-time and speculative orders from non-affiliated companies confirmed for 2025 have exceeded the existing engine price increase rate; second, the product mix improvement effect caused by CAPA expansion has been confirmed through the construction schedules of front-end clients; and third, the acquisition of SEAM has secured an additional stable source of profit.