On the 16th, SK Securities analyzed that Hanwha Ocean has a clear potential for stock price increase as it can expect a substantial order for North American LNG carriers starting in the second half of the year. It then raised its target price from 57,000 won to 97,000 won while maintaining an investment opinion of 'buy.' The closing price of Hanwha Ocean on the previous trading day was 79,400 won.
SK Securities estimated that Hanwha Ocean's consolidated revenue for the first quarter of this year would increase by 35.1% compared to the previous year, reaching 3.0848 trillion won, and that its operating profit would surge by 277.8% year-on-year to 200 billion won. Despite an inevitable decline in revenue due to a lower number of working days compared to the previous quarter, operating profit is expected to significantly exceed market expectations (145.9 billion won) due to the absorption of low-cost ships, an increase in the proportion of high-priced vessels, and the sustained benefits from favorable steel prices and exchange rates.
SK Securities emphasized that the upward potential for stock prices remains open. Han Seung-han, a researcher at SK Securities, noted, "The possibility of securing LNG orders for the Rio Grande liquefied natural gas (LNG) project in the United States by NextDecade, invested in together with the group, is high, and the normalization of operations through the absorption of low-cost vessels and an increased proportion of high-priced orders is expected to demonstrate gradual performance improvements."
Hanwha Ocean is also advantageous for obtaining contracts for U.S. vessels because it does not violate the 'Burns-Tollefson Amendment,' which prohibits the construction of vessels by foreign shipyards through U.S. shipyards. One researcher stated, "There are also high expectations for securing many global vessel projects aside from the U.S. vessel market, including Poland's ORKA and the Canada Submarine Acquisition Program (CPSP)."
He added, "Due to U.S. sanctions on China's shipbuilding industry and the anticipated implementation of a high-intensity carbon tax system by the International Maritime Organization (IMO), a prolonged cycle is expected to continue."