Hanwha Ocean Misses Q3 Profit Estimates, Prompting Brokerages to Cut Price Targets
Hanwha Ocean fell short of market expectations amid headwinds including fewer working days and a decline in the won-dollar exchange rate. While its commercial shipbuilding business demonstrated solid underlying profitability, losses in the naval and special-purpose vessels segment and a gap in new o
Hanwha Ocean fell short of market expectations in Q3 amid fewer working days and exchange rate challenges. While commercial shipbuilding remained profitable, naval and special-purpose vessels saw losses. Brokerages cut price targets, citing limited near-term improvements. SK Securities, Kiwoom Securities, Mirae Asset Securities, NH Investment Securities, Hana Securities, Daol Investment Securities, and LS Securities all lowered their targets.
Performance varied by segment, with commercial shipbuilding maintaining strong margins and energy plant segment turning profitable. Concerns over Chinese capacity expansion and lower exchange-rate forecasts weighed on the outlook. Brokerages maintained Buy ratings but lowered earnings estimates. The fourth quarter remains challenging due to one-off expenses and a shifting vessel mix.
However, overseas naval orders and the South Korea-U.S. shipbuilding cooperation initiative offer potential catalysts for recovery.
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