Hanwha Ocean Shares Hit Record High on Strong Earnings

Hanwha Ocean shares (042660.KS) ended the day 13.43% higher, having hit a new high at ₩114,900 by the middle of the KRX trading day. This marks a new all-time high close to go with the intra-day high, driven by strong Q2 earnings, new orders, and strategic U.S. initiatives.

The stock's momentum follows a week of impressive gains, climbing 27.61% from around ₩88,000. Year-to-date, shares are up a staggering 197%, reflecting market confidence in Hanwha Ocean's turnaround and future prospects.

Technically, the stock is trading significantly above its short and long-term moving averages, signaling a strong breakout.

Hanwha Ocean's robust second-quarter results fueled the rally. Operating profit reached ₩371.7 billion ($267.5 million), a 43.6% increase from the previous quarter and a dramatic reversal from the ₩10 billion loss reported a year prior. Revenues also saw a healthy 4.8% quarter-over-quarter increase to ₩3.3 trillion, boosted by stronger commercial and offshore sales.

Adding to the positive sentiment, U.S. President Donald Trump's proposal of a 15% tariff on South Korean exports has indirectly benefited Hanwha Ocean. Vice Chairman Kim Dong-kwan of Hanwha Group joined other South Korean business leaders, including Hyundai Motor Group Chairman Euisun Chung and Samsung Electronics Chairman Jay Y. Lee, in Washington to lobby for a trade deal.

Hanwha Group's Philly Shipyard in Philadelphia, acquired last year, is expected to play a crucial role in revitalizing U.S. shipbuilding efforts. This positions Hanwha Ocean strategically to capitalize on potential U.S. defense and shipbuilding contracts.

The company also secured new orders worth ₩353.6 billion, further bolstering its growth trajectory. In addition, Hanwha Ocean has launched initiatives to enhance its global competitiveness, particularly against the growing threat from Chinese shipbuilders.

The company's reliance on LNG carrier sales, while currently profitable, exposes it to fluctuations in global energy demand and pricing. Furthermore, the ambitious green technology initiatives, while promising, are still in their early stages and face significant technological and regulatory hurdles. The valuation, with a high forward P/E ratio, leaves little room for error and suggests that much of the future growth is already priced in.

Hanwha Ocean's recent success is partly attributed to its focus on high-margin liquefied natural gas (LNG) carriers. Sales for the second quarter reached ₩3.29 trillion, marking a 30% year-on-year increase, driven by increased production of these specialized vessels.

Looking ahead, Hanwha Ocean is also investing in pioneering green technologies, including the development of the WindHive 15-H3 floating offshore wind turbine platform and ammonia-to-power systems. These initiatives position the company to capitalize on the global energy transition and align with decarbonization goals.