Brokerage : Daishin Securities
Analyst : Jini Lee
Investment Rating : BUY (Maintained)
Target Price : KRW 139,000 (Maintained)
Core Momentum : Surging merchant vessel profitability driven by a higher share of high-margin LNGC vintage recognition and favorable FX effects, coupled with emerging execution synergies with Philly Shipyard for US naval auxiliary programs
📊 1. [Valuation & Key Financial Metrics]
- Rating & Target Price: BUY Maintained, 6-Month Target Price of KRW 139,000 (Current Price: KRW 88,800 as of July 27, 2026)
- 2Q26 Earnings Summary: Revenue reached KRW 5.44 trillion (+65.2% YoY, +69.6% QoQ), Operating Profit came in at KRW 736.1 billion (+101.7% YoY, OPM 13.5%), and Net Profit attributable to controlling interests stood at KRW 469.0 billion (+216.3% YoY), beating the market consensus operating profit of KRW 534.0 billion.
- Key Forecast Financials (2026F → 2027F → 2028F):
- Revenue: KRW 15.96 trillion → KRW 15.92 trillion → KRW 16.85 trillion
- Operating Profit: KRW 2.37 trillion → KRW 2.48 trillion → KRW 2.73 trillion
- Net Profit (Controlling): KRW 1.58 trillion → KRW 1.65 trillion → KRW 2.16 trillion
- EPS: KRW 5,201 → KRW 5,368 → KRW 7,032
- PER: 17.3x → 16.7x → 12.8x
- PBR: 3.5x → 2.9x → 2.4x
- ROE: 23.0% → 19.4% → 20.8%
🚀 2. [Market Opportunities & Business Outlook]
- Merchant Vessel Profitability Surge: The merchant ship division recorded revenue of KRW 3.24 trillion and operating profit of KRW 735.6 billion (OPM 22.7%) in 2Q26. The proportion of high-price LNGC orders secured since 2024 rose to 45–50% of recognized sales, while a KRW 37 QoQ rise in the average KRW/USD exchange rate yielded positive conversion gains. Profit growth in 2027–2028 may moderate slightly due to the accelerated recognition of these high-margin vintages.
- Offshore and Special Ship Operations: Early project recognition and cost reductions in the offshore division bolstered overall quarterly results. In naval shipbuilding, following the Canadian CPSP outcome, idle capacity will be repurposed, with plans to integrate domestic surface ship and submarine capacity around KDDX opportunities.
- US Defense & Naval Support Partnerships: For the recently awarded special ship project (two MRV missile tracking vessels), Hanwha Ocean will handle design and production, while Philly Shipyard will manage construction under US regulations. Upcoming US naval auxiliary vessel projects are anticipated to follow a similar cooperative structure (‘Hanwha Ocean design/production + Philly construction’) prior to potential regulatory changes.
📝 Editor’s Comment (Perspective)
The analyst views Hanwha Ocean as a company demonstrating strong merchant vessel profitability through the expanded revenue recognition of high-margin LNGC vintages and favorable FX movements, while actively building out an operational footprint in the US naval auxiliary and special ship market via its partnership with Philly Shipyard. This perspective focuses on the earnings strength generated by the high-value vessel mix alongside medium-to-long-term defense opportunities in North America.
To evaluate whether this investment thesis continues to materialize, key verification points include whether merchant vessel operating margins remain robust as post-2024 LNGC vintages are delivered, the confirmation of new domestic and export naval contracts such as KDDX, and the conversion of US naval auxiliary pipeline opportunities into definitive project awards alongside Philly Shipyard. These factors can be monitored through future quarterly earnings releases, official IR materials, regulatory filings, and periodic financial reports.
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