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Photo = Hanwha Ocean |
[Alpha Biz= Kim Sangjin] Korea Investment & Securities said on Friday that it is focusing on the "sharp earnings growth rate" of Hanwha Ocean and raised its target price from 57,000 KRW to 63,000 KRW, a 10.5% increase.
Earlier, Hanwha Ocean reported that its fourth-quarter consolidated revenue reached 3.2532 trillion KRW, with operating profit of 169 billion KRW. This was 9.1% and 46.7% higher than the consensus (market expectations), respectively.
Korea Investment & Securities stated, "Both the size and profitability across all sectors have improved compared to the previous quarter and the same period last year." The firm noted, "A positive development is that the production system for merchant vessels has stabilized, eliminating the production stabilization costs and penalties that had to be managed every quarter."
The firm also highlighted that the contribution of the special vessel sector's performance is increasing, with newbuilding revenue and maintenance, repair, and overhaul (MRO) revenue being key sources of income.
Korea Investment & Securities added, "100% of newbuilding revenue generated through 2027 will come from domestic orders from the Defense Acquisition Program Administration," and "MRO revenue will begin to materialize starting in 2025."
The firm concluded by stating, "The target price was calculated by applying a target P/B ratio of 3.13 times to the 2027 BPS (book value per share) estimate of 20,160 KRW."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
