Yuanta Securities reaffirmed its buy recommendation on Hanwha Ocean (KRX: 042660) on July 6th, keeping its target price at ₩179,000. Based on the share price of ₩106,900 as of July 3rd, that implies upside of 67%.
The brokerage estimates Hanwha Ocean's second-quarter revenue at ₩3.63 trillion, with operating profit of ₩586 billion. Both figures benefit from a 7% rise in working days compared with the previous quarter, as well as a higher proportion of revenue being recognised from orders booked at elevated prices in 2022. The operating margin is forecast to reach 16.1%, an improvement of 2.4 percentage points quarter-on-quarter.
A weaker Korean won has also boosted the outlook. Currency effects are estimated to have added ₩78 billion to revenue and ₩27 billion to operating profit relative to the prior quarter.
For July, Yuanta identifies the Canada Patrol Submarine Project (CPSP) as the pivotal catalyst for the share price. The programme was launched in 2023 and, if Hanwha Ocean secures the contract, analysts project average annual operating profit of ₩500 billion between 2032 and 2043, followed by maintenance, repair and operations (MRO) income averaging more than ₩300 billion a year from 2044 onwards. Applying a price-to-earnings multiple of 20 times yields an implied business value of approximately ₩8 trillion.
The principal rival is Germany's ThyssenKrupp Marine Systems (TKMS), which was placed on the project's shortlist in August 2025 and has since deepened its partnerships with Canadian firms. Hanwha Ocean, for its part, has been steadily expanding its own network of local Canadian partners since November 2023, backed by the broader Hanwha Group.
Yuanta argues that even if TKMS wins the contract and the share price falls in the near term, the current valuation does not yet incorporate any CPSP upside, making a dip a potential buying opportunity. Beyond the Canadian submarine project, the brokerage notes that expected second-half updates on the MASGA programme and a continued improvement in underlying earnings are likewise not yet priced in.
For the full year 2026, Yuanta forecasts revenue of ₩13.97 trillion and operating profit of ₩2.18 trillion — an 87% increase in operating profit compared with the prior year.