[E-Daily Reporter Kwon Oh Seok ] IBK Investment & Securities announced on the 15th that it is maintaining its “Buy” rating and 120,000 won target price for Hanwha Ocean(042660).

Jang Seong-ho, an analyst at IBK Investment & Securities, explained, “Collective bargaining agreements remain a variable in the long-term cost structure, and future earnings estimates and target prices may be adjusted depending on the outcome. However, the outlook for the expansion of LNG liquefaction plants—centered on the U.S.—and the resulting strong demand for LNG carrier orders remains unchanged.”
He added, “Since the company can increase the proportion of LNG carrier construction to 60–70%, we expect it to benefit significantly when demand for LNG carriers expands. In addition, military ship exports and the ‘MASGA Project’ remain potential opportunities.”
Third-quarter operating results are projected to fall short of market expectations, with revenue of 3.4314 trillion won (up 13.5% year-over-year) and operating profit of 472.6 billion won (up 63.1%)
. The main factors were an increase in lost workdays due to torrential rains on Geoje Island and labor disputes, as well as a sharp decline in the won-dollar exchange rate since August.
Analyst Jang predicted, “While the burden of fixed costs will persist in the specialty vessel and energy plant sectors, we expect the impact on company-wide operating performance to be minimal.”
He attributed the better-than-expected first-half results this year to improved production efficiency and cost control in the merchant ship segment. He noted, “Going forward, these capabilities will be key factors in safeguarding the profitability of the merchant ship segment,” adding “Since the proportion of revenue recognized from high-value orders secured starting in 2024 has already reached 75%, the positive impact from new orders will be limited by 2027. Meanwhile, the revenue share from LNG carriers is estimated to decline from around 70% in the first half of 2026 to around 40% in the second half of 2027.”
He further noted, “Nevertheless, we forecast the merchant ship segment’s operating profit margin to reach 18.3% in 2027 because we expect improvements in production efficiency and cost control to offset the shift in the vessel mix.”