[Click eStock] "Hanwha Ocean Anticipated to Secure U.S. Navy MUSV Contract"

Target Price Set at 175,000 Won

On April 14, SK Securities maintained its "Buy" investment rating and target price of 175,000 won for Hanwha Ocean.

Seunghan Han, a researcher at SK Securities, stated, "We believe that Hanwha Ocean was able to secure the concept design contract for the next-generation logistics support vessel of the U.S. Navy as a result of Hanwha Group's contribution to the rebuilding of the U.S. shipbuilding industry through the acquisition of the Philly Shipyard." He added, "We expect share price momentum not only from the construction phase of this project in the future but also from potential orders for the U.S. Navy's MUSV (Medium Unmanned Surface Vessel) program."

Han predicted that Hanwha Ocean would post sales of 3.2032 trillion won and operating profit of 350.1 billion won in the first quarter. He explained that while favorable exchange rates and increased shipbuilding prices have had a positive effect, the removal of a one-off reversal effect from order changes (C/O) in the offshore segment in the previous quarter has led to a return to ordinary losses starting this quarter, which negatively impacts the results.

He noted that if the offshore division fails to secure orders within this year, quarterly losses are expected to continue until the first half of next year. In the case of the Canadian submarine project, which is the market's most anticipated, the preferred bidder is scheduled to be selected within the second quarter. He further emphasized, "With orders for the Thai frigate and Estonia OPV projects also expected within the year, we see this as a preemptive buying opportunity."

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