"After Dumping Samsung Electronics, Foreigners Go on a 10-Day Buying Spree" – This Stock Tops Foreigners’ Net Buying List, with Target Prices Raised Across the Board

According to The Financial News, as the Korea Composite Stock Price Index (KOSPI) continues its strong run at the start of the year, Hanwha Ocean has emerged as the stock that has attracted the largest amount of foreign investor funds. With foreign buying concentrated in the stock and its share price surging in a short period, securities firms have also been steadily raising their target prices for Hanwha Ocean this month.

According to the Korea Exchange (KRX) on the 19th, from the 2nd to the 16th of this month, foreign investors recorded net purchases of 1,509.9 billion won in the KOSPI market. Over the same period, institutions also joined the buying trend with net purchases of 1,030.6 billion won, while individual investors posted net sales of 4,262.8 billion won. This has created a typical start-of-year flow pattern in which foreigners and institutions drive the index higher while retail investors lock in profits.
By individual stock, Hanwha Ocean recorded the largest net buying by foreigners over the period, with net purchases reaching 945.4 billion won. It was followed by Doosan Enerbility, Celltrion, Hanwha Aerospace, and HD Hyundai Heavy Industries. A notable feature is that foreign capital has been concentrated in sectors such as shipbuilding, defense, and energy, where mid- to long-term industry visibility is considered high.
The foreign buying spree has been clearly reflected in the share price trend. Hanwha Ocean’s share price climbed from 114,700 won on January 2 to 147,000 won on the 16th, a gain of nearly 28% in about two weeks. This performance far outpaced the KOSPI’s 14.87% rise over the same period, underscoring the extent to which foreign funds have been funneled into specific stocks during the early-year rally.

Along with the share price rally, analysts’ views in the securities industry have also been moving up quickly. Just this month, four securities firms, including Daishin Securities and Hanwha Investment & Securities, have successively raised their target prices for Hanwha Ocean. Their targets now range from 159,000 won to as high as 180,000 won.
The upward revisions to target prices are being attributed to a recovery in shipbuilding industry conditions and the growth potential of the defense and special ship segments. Analysts note that the pace of earnings improvement is accelerating as the proportion of high-priced vessels in the order book increases, while expectations for stronger defense demand, particularly from the United States, are driving a valuation re-rating. In particular, the potential linkage with the US shipbuilding and naval vessel market is emerging as a key mid- to long-term growth story.
Bae Sung-jo, an analyst at Hanwha Investment & Securities, explained, "We believe that the key driver of the current re-rating in the shipbuilding sector is the intensifying US–China hegemonic rivalry, and we expect that detailed measures, including legislation related to Make American Shipbuilding Great Again (MASGA) and Korea–US Shipbuilding Cooperation, will gradually come into clearer view this year." He added, "Hanwha Group is reportedly in discussions with the Federal Government of the United States to expand production facilities and storage sites at Philly Shipyard, and is also said to be considering acquiring other shipyards in the United States."

koreanbae@fnnews.com Bae Han-geul Reporter