[E-Daily Reporter Hyera Lee ] On the 11th, SKSecurities lowered its target price for Hanwha Ocean ( Hanwha Ocean(042660)) from 175,000 won to 134,000 won, reflecting the company’s failure to secure the Canadian Submarine Program (CPSP) contract. The firm added that securing orders for offshore plants and global naval vessels in the second half of the year will be crucial.

Han Seung-han, an analyst at SKSecurities, stated, “The Canadian Submarine Program (CPSP) is in the past,” adding, “Now is the time to focus on future projects.”
SKSecurities projected that Hanwha Ocean would post second-quarter consolidated revenue of 3.4677 trillion won and operating profit of 516.7 billion won, in line with market expectations. Researcher Han explained, “Improved profitability in the merchant ship segment and a reduction in losses in the offshore segment are expected to drive company-wide profit growth.”
Factors contributing to the improved performance included an increase in delivery volumes due to more operating days and improved productivity, cost reductions, a higher proportion of high-margin vessel construction, and a strengthening exchange rate. The analyst noted, “As the proportion of high-margin vessels in this year’s order book for 2024–2025 expands, the trend of improved profitability is expected to continue.”
One analyst identified offshore plant orders as a key variable for Hanwha Ocean’s future stock price. The analyst noted, “To alleviate concerns about losses in the offshore division, it is necessary to secure offshore plant orders in the second half of this year, including the Venus Floating Production, Storage, and Offloading (FPSO) unit in Namibia,” adding, “If these orders are secured, concerns regarding the offshore division’s performance starting next year will also be alleviated.”
The downward revision of the target price reflects adjustments to earnings estimates and valuation following the failure to secure the Canadian CPSP contract. However, one analyst assessed that the global naval vessel order pipeline—including projects in Greece, Estonia, Saudi Arabia, Morocco, Egypt, the Philippines, and Chile—remains robust.
One analyst stated, “Since the company has proven its competitiveness in submarine construction through competition with Germany’s TKMS, future global naval vessel orders will serve as momentum for share price growth,” adding, “Given that the U.S. Department of Defense and Navy have sent Requests for Information (RFIs) to Korean shipbuilders for the construction of combat ships and medium-sized refueling vessels, the U.S. naval vessel business will also be a key driver to watch in the second half of the year.”