LS Securities cuts target for Hanwha Ocean stock on profit outlook

Published on 10/14/2026 at 03:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

LS Securities cut its target from KRW 120,000 to KRW 90,000 on October 14, 2026. Hanwha Ocean stock retains Buy with 34.10 percent upside.

Earnings estimates shape valuation

LS Securities reduced its Hanwha Ocean target from KRW 120,000 to KRW 90,000 on October 14, 2026.
Third-quarter revenue was estimated at KRW 3.69 trillion, with operating profit of KRW 504.6 billion.
Hanwha Ocean had a KRW 20.6 trillion market capitalization on October 14, 2026.

Hanwha Ocean, KR7042660001, Illustration mit AI erstellt.

Hanwha Ocean (ISIN KR7042660001) faced a sharp analyst target reduction on October 14, 2026, as Seoul Economic Daily reported that LS Securities cut its target from KRW 120,000 to KRW 90,000 while retaining a Buy rating. The brokerage linked the change to weaker third-quarter earnings expectations and softer momentum around the U.S. shipbuilding revitalization project.

Three dated business milestones

On September 3, 2026, Hanwha Ocean secured a KRW 1.5527 trillion contract for six LNG dual-fuel container ships, according to Seoul Economic Daily. On September 28, 2026, the company added two LNG carrier orders worth KRW 680 billion, as Yonhap News Agency reported. On October 14, 2026, LS Securities lowered its target to KRW 90,000 from KRW 120,000.

What changed in the earnings view?

LS Securities estimated third-quarter revenue at KRW 3.69 trillion, up 21.90 percent from a year earlier, while operating profit was projected at KRW 504.6 billion, up 74.10 percent. The estimate was 10.00 percent below the KRW 563.3 billion consensus figure cited in the same report, making the profit gap more important than the headline growth rate.

The brokerage attributed the pressure to fewer working days, a sharp fall in the won-dollar exchange rate and fixed costs in naval vessels. It also estimated commercial-vessel operating profit at KRW 2.21 trillion for 2026, keeping the product mix and delivery schedule central to the investment case.

Quarterly growth meets valuation pressure

Hanwha Ocean reported second-quarter 2026 revenue of KRW 5.44 trillion, up 65.20 percent year over year, and operating profit of KRW 736 billion, according to ATS View. Net income reached KRW 693 billion in the same quarter, while the operating margin was 13.50 percent.

The contrast is clear: second-quarter operating profit was KRW 736 billion, but the brokerage expects KRW 504.6 billion for the third quarter. That sequential decline explains why the target cut arrived despite strong year-over-year growth and a large order pipeline.

Market value and trading context

Hanwha Ocean traded at KRW 67,200 on the Korea Exchange on October 14, 2026 at 10:30 a.m. KST. Its market capitalization was KRW 20.6 trillion, while the 52-week range stood at KRW 65,700 to KRW 154,800.

The valuation debate now rests on execution rather than order volume alone. Ship deliveries, exchange-rate sensitivity and progress on U.S. shipbuilding policy are the measurable factors separating the KRW 90,000 target from the latest KRW 67,200 market price.