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Hanhwa Ocean |
[Alpha Biz= Reporter Kim Sangjin] Meritz Securities announced on the 30th that Hanwha Ocean's Q3 performance is at "earnings shock" levels, prompting a reduction in the target price from 40,000 KRW to 38,000 KRW. The investment rating of 'Buy' remains unchanged.
Analyst Baek Gi-yeon noted that the Q3 operating profit fell 56.1% short of consensus expectations, impacted by one-time factors such as a decrease in exchange rates and rising outsourcing costs, resulting in the earnings shock.
Earlier, Hanwha Ocean reported Q3 revenue of 2.7031 trillion KRW and an operating profit of 25.6 billion KRW. While revenue increased by 41% compared to the same period last year, operating profit decreased by 65.5%.
The company explained that the decline in operating profit compared to the previous year was due to a high base effect, as it won an arbitration case regarding advance payments for two drillships in Q3 of last year, resulting in a reversal of inventory asset valuation. However, revenue grew as the share of LNG carriers increased and the plant division began to generate significant profits.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
