[Special Stock] Hanwha Ocean Falls Over 7% Following Downgrade in Investment Opinion

Hanwha Ocean is weak due to securities firms' downgrade of investment ratings amid valuation concerns.

As of 9:59 AM on the 20th, Hanwha Ocean is trading at 72,600 KRW, down 5,600 KRW (7.16%) from the previous day.

On this day, Korea Investment & Securities downgraded Hanwha Ocean's investment rating from 'Buy' to 'Neutral.' Kyungtae Kang, a researcher at Korea Investment & Securities, said, "The downgrade is due to a lack of upside potential, which is a valuation issue. An unprecedented cycle has started in the special ship sector, and the market's expectations for Hanwha Ocean regarding U.S. warship construction, which triggered this, are reasonable. However, even using various measurable methods, it is difficult to justify Hanwha Ocean's current valuation." He added, "There are limits to simply applying a valuation multiple premium without changing earnings forecasts, and it is unreasonable to postpone the application of book value per share (BPS) from the previously estimated 2027 to 2028 when the delivery slots for merchant ships in 2028 have not been fully utilized."

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