- Hanwha Ocean Co Ltd reported a significant increase in operating profit for the fourth quarter.
- The operating profit stood at 169.0 billion won, a stark improvement from a 48.8 billion won loss in the previous year.
- This profit also surpassed the market estimate of 103.11 billion won.
- Net income reached 576.4 billion won, up from 286.0 billion won year-over-year, and well above the estimated 70.51 billion won.
- Sales rose by 46% year-over-year to 3.25 trillion won, exceeding the forecast of 2.91 trillion won.
- Following the positive earnings report, Hanwha Ocean’s shares increased by 3.5% to 53,300 won, with 4.74 million shares changing hands.
- Analyst ratings for Hanwha Ocean indicate 14 buy ratings, 5 hold ratings, and no sell ratings.
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Hanwha Ocean on Smartkarma
On Smartkarma, independent analysts Sanghyun Park and Douglas Kim have provided contrasting views on Hanwha Ocean. Park’s analysis titled “Flagging the Hanwha Ocean CB Conversion Risk (20% of Shares Out)” leans bearish, highlighting the risk associated with nearly 20% of the company’s shares potentially being converted. Park suggests that without clear signals from KEXIM regarding the conversion, aggressive actions could be risky for investors considering a short play on Hanwha Ocean.
In contrast, Douglas Kim‘s report “Trump Catalyst – Korean Shipbuilding Sector” takes a bullish stance on Hanwha Ocean, viewing the Korean shipbuilding sector, including Hanwha Ocean, as a significant beneficiary of Trump’s presidency. Kim points out the potential for increased outsourcing of naval fleet construction by the US Navy to Korean companies like Hanwha Ocean. These differing perspectives provide investors with valuable insights into the potential risks and opportunities associated with investing in Hanwha Ocean.
A look at Hanwha Ocean Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the long-term outlook for Hanwha Ocean, Smartkarma’s Smart Scores shed light on various aspects of the company. Hanwha Ocean scores high in Momentum, indicating strong market performance and investor interest. This suggests a positive trajectory for the company’s future growth potential. Additionally, with a high score in Growth, Hanwha Ocean appears to be positioned well for expanding its business and increasing its market share in the long run.
On the other hand, Hanwha Ocean receives lower scores in Value and Dividend, implying that the company may not be currently perceived as undervalued or as a high dividend-paying stock. However, with a moderate score in Resilience, Hanwha Ocean shows some ability to withstand market challenges. Overall, the company’s focus on shipbuilding and offshore services, including a wide range of vessel manufacturing, may contribute to its growth and resilience in the industry.
### Hanwha Ocean Co., Ltd. operates as a shipbuilding and offshore company. The Company provides floating structure construction, steel wire drying, commercial vessels, specialty vessels, gas carrier, tanker, containership, ro ro, bulk carrier, submarine, warship, auxiliaries, cruise ships, and ferries manufacturing services. Hanwha Ocean also offers onshore plants services. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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