SK Securities noted on the 22nd that Hanwha Engine is expected to achieve the largest order volume in its history this year, forecasting that both short-term, medium-term, and long-term growth are all possible. It maintained a buy investment opinion and a target price of 32,000 won. The closing price of Hanwha Engine on the previous trading day was 24,400 won.
SK Securities estimated that Hanwha Engine will record sales of 318.2 billion won and operating profit of 22.3 billion won in the first quarter of this year (January to March). These figures represent increases of 8.5% and 14.8%, respectively, compared to the same period last year. Operating profit slightly exceeds the market estimate of 20.7 billion won.
Han Seung-hwan, a researcher at SK Securities, said, "Hanwha Engine is likely to achieve the highest level of order volume this year" and explained, "The new order amount in the first quarter (1.0587 trillion won) already accounts for 64% of last year's annual order volume (1.649 trillion won)."
A researcher believes that Hanwha Engine's order performance will continue to grow. He said, "It appears that engine orders for Korean shipyards have not even started yet" and added, "Engine orders for North American liquefied natural gas carriers, which will begin in earnest from the second half of the year, will continue from next year."
Additionally, he stated, "Following short-term growth due to the engine supply shortage in China, medium-term growth can continue due to expanded demand for environmentally friendly replacements as part of the International Maritime Organization (IMO)'s mid-term measures for reducing greenhouse gases from ships," and he added, "Long-term growth is also expected due to the aging fleet replacement cycle."