[Click eStock] "Hanwha Ocean, Upward Momentum After Russia-Ukraine War Ends... Target Price Maintained"

Completion of Shipbuilding Schedule Adjustment... New Orders Expected from September
Marine Defense Momentum Highlighted Due to Possible End of Russia-Ukraine War
Stock Price Decline Seen as Buying Opportunity

DS Investment & Securities analyzed on the 27th that Hanwha Ocean will highlight an upward momentum after the end of the Russia-Ukraine war. They maintained a 'Buy' investment rating and a target price of 42,000 KRW. Hanwha Ocean's closing price on the previous trading day was 32,700 KRW.

Researcher Yang Hyung-mo of DS Investment & Securities stated, "While the shipbuilding sector's stock prices had been on an upward trend, they showed weakness throughout August. The main reasons were a lack of momentum such as an order gap caused by shipowners' summer vacations after the Q2 earnings announcement." He added, "Additionally, recent dollar weakness causing exchange rate issues and various noises such as labor union strikes at shipbuilding companies increased stock price volatility. However, this decline is only a temporary period adjustment, and the price drop is rather a buying opportunity."

The shipbuilding industry is expected to see an increase in new orders starting in September. According to foreign media, large-scale series orders are being prepared, and given the characteristic that orders are usually placed within 12 months after foreign media reports, orders are expected between September and October. Furthermore, inquiries and negotiations are underway for various vessels including Qatar's $5 billion QC-Max class LNG carriers, FSRUs, and VLACs, which also act as positive signals. This suggests that the period adjustment in the shipbuilding sector is coming to an end.

Additionally, recent positive reports indicate that Ukraine launched a surprise attack on Kursk Oblast, Russian mainland, breaking through the border defense line. Researcher Yang said, "However, many analyses suggest that such attacks will be difficult to sustain due to the arrival of the muddy season 'Rasputitsa' at the end of October, uncertainties surrounding the U.S. presidential election in November, and the difficulties of winter offensives." He added, "Accordingly, the end of the Russia-Ukraine war is approaching, and after the war ends, the U.S. strategic focus is likely to shift to China's naval power, highlighting momentum in maritime defense, which will be a positive benefit for shipbuilding companies."

This content was produced with the assistance of AI translation services.