Hanwha Engine Co., Ltd.’s cumulative orders this year reach ₩2.7973 trillion, up 127%

[Financial News] iM Securities said on the 9th that Hanwha Engine Co., Ltd.’s cumulative orders this year had reached 2.7973 trillion won, exceeding 127% of the 2025 figure and 170% of the 2024 figure. Its order backlog stands at 5.6501 trillion won, equivalent to 3.6 years of revenue at this year’s level. iM Securities maintained its “Buy” rating on the company but lowered its target price from 101,000 won to 69,000 won.
iM Securities researcher Byun Yong-jin said, “The engines currently being ordered from Hanwha Engine Co., Ltd. are mainly scheduled for delivery in 2028. The relevant vessels are scheduled for delivery in 2029, and 106 of the 131 vessels for which China secured orders this year are scheduled for delivery in 2029 or later, so engine orders for those vessels are still being placed.”
iM Securities forecast fourth-quarter revenue of 442.5 billion won, operating profit of 65.4 billion won and an operating margin of 14.8% for Hanwha Engine Co., Ltd. This is partly because deliveries of engines for container ships, which command good unit prices and margins, are increasing. Also, unlike in the third quarter, operating days are expected to increase, making the effect of manufacturing overhead allocation an incremental contributor to earnings.
Researcher Byun said, “The SEAM division, which has continued to post losses since the acquisition as PPA amortization is still being reflected, is also expected to turn profitable due to fourth-quarter seasonality.” He added, “From the second quarter of 2027 onward, deliveries of engines for large container ships, currently at around four, are expected to increase to at least 10, lifting the top line again.”
Hanwha Engine Co., Ltd.’s share of sales to China is rising, from 22.3% in the second quarter to 23.8% in the third. China’s share of the order backlog increased from 46% to 48% over the same period, while the share of container ships rose from 58% to 60%.
[email protected] Kang Gu-gwi Reporter