[Click e-Stock] "Hanwha Engine: Fourth Quarter Outlook Surpasses Third... Target Price Raised"

On October 1, Daol Investment & Securities analyzed that Hanwha Engine is expected to see a greater improvement in its fourth-quarter performance compared to the third quarter. The firm maintained its 'Buy' investment rating and raised the target price to 66,000 won.

Daol Investment & Securities forecast that in the third quarter of this year, Hanwha Engine's sales and operating profit would reach 305.3 billion won and 25.6 billion won, respectively, representing increases of 3% and 68% year-on-year. Analyst Choi Kwangsik explained, "There is a burden on sales and fixed costs due to the delivery of as many as 35 units carried over from the previous quarter," adding, "Profitability remains largely unchanged, as there has been no significant change in the engine mix from orders placed in 2022 and 2023."

However, he projected that operating profit in the fourth quarter would reach 39.8 billion won, a 119% increase compared to the same period last year. He stated, "This is because the mix effect from the expanded delivery of high-value engines ordered in 2023 and 2024 will begin in earnest. Next year, profitability and profit growth will be driven solely by engines ordered during this period."

In the first half of this year, Hanwha Engine's order amount reached 1.62 trillion won, nearly matching last year's annual order record of 1.64 trillion won. Analyst Choi commented, "Strong orders for container ship engines are expected toward the end of the year," and added, "As Chinese shipbuilders are increasing their container ship orders, this will benefit Hanwha Engine and the engine division of HD Hyundai Heavy Industries."

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