Hanwha Ocean is a shipbuilder that makes merchant vessels centered on LNG carriers together with special-purpose ships (defense), such as submarines and warships, earning money by building ships at its Okpo shipyard in Geoje. In the first quarter of 2026 it posted revenue of ₩3.2099 trillion and operating profit of ₩441.1 billion (a 13.7% operating margin), lifting operating profit 70.6% from a year earlier, and its order backlog topped ₩34 trillion, securing roughly three years of work. The key point to watch: on the plus side, high-priced LNG carriers are being delivered and margins are climbing in steps, giving strong earnings visibility, while on the other hand a miss on a large defense project or a slowdown in merchant-ship ordering could shake the growth expectations.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 226.3%).
- Revenue rose 18.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.1% higher than a year earlier.
- ROE is 20.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.1%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hanwha Aerospace 30.44% (corporate)
Controlling bloc incl. related parties 42.01%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis
- Hanwha Ocean is a shipbuilder that builds and sells ships.
- It constructs vessels at the Okpo shipyard in Geoje.
- About 83% of first-quarter 2026 revenue came from the merchant-ship segment, most of it LNG carriers.
- The remaining roughly 16% came from special-purpose ships (defense), such as submarines and warships, and offshore plants.
- In other words, this company's profit hinges heavily on how well it wins high-value LNG carrier orders at good prices and delivers them on time, and on how many defense orders it lands.
- The former Daewoo Shipbuilding & Marine Engineering took its current name when it was acquired by the Hanwha Group in 2023.
- The latest close is ₩78,600 and the market cap is ₩24.1 trillion.
- The price sits below its 20-day line (₩108,475) and below its 60-day line (₩118,467).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (an indicator that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 33.4, a neutral level.
- The one-month change is -28.7%, the three-month change is -35.0%, and it stands -47.6% below its 52-week high.
- Its relative strength versus the KOSPI is 15 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 86% of all stocks for strength.
- Over the past three months it lagged the index by 50.4%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Profitability is good.
- ROE (how much is earned in a year on equity) is a high 20.2%.
- The 2025 operating margin was 9.1% and the net margin 9.8%, and in the first quarter of 2026 the operating margin rose to 13.7%.
- Financial safety, however, bears watching.
- The debt ratio (debt against equity) is a somewhat high 226%.
- Shipbuilding tends to show a high debt ratio because builders draw on both advance payments and borrowings while a ship is under construction.
- On valuation metrics, EV/EBIT (enterprise value divided by operating profit, a debt-adjusted version of the P/E) is 31.7x and EV/EBITDA is 26.4x.
- Net debt (total borrowings minus cash) is about ₩5 trillion.
- These EV multiples look high because they are on 2025 earnings, but with profit rising fast the multiples move lower on a this-year basis.
- The FCF yield (actual cash generated relative to market cap) is about 1.9%.
- The results trace a classic recovery path: from losses to profit, then to surging profit.
- Revenue grew from ₩7.4 trillion in 2023 to ₩10.8 trillion in 2024 and ₩12.8 trillion in 2025.
- Operating profit swung from a ₩196.5 billion loss in 2023 to a ₩237.9 billion profit in 2024, then jumped to ₩1.1676 trillion in 2025.
- Net profit also rose to ₩1.2458 trillion in 2025, up 135.9% from a year earlier.
- In the first quarter of 2026 the momentum continued, with net profit of ₩500 billion (up 131.8% year over year) and operating profit of ₩441.1 billion (up 70.6%).
- The source of this strength is high-priced LNG carriers, booked earlier, being delivered in sequence and lifting margins in steps.
- The order backlog of more than ₩34 trillion is about three years of work, giving high earnings visibility.
- Reflecting this rising-profit path, this year's expected P/E on net profit is about 13x, below the 20x on last year's earnings.
- The flow read from disclosures is continued order inflow and improving profit.
- The April 27 first-quarter preliminary earnings disclosure confirmed revenue of ₩3.2099 trillion and operating profit of ₩441.1 billion.
- Several single-sale/supply contract disclosures followed in May: on May 29 it disclosed a contract to supply two LNG carriers to a shipowner in Africa for ₩756.3 billion (construction period May 2026 to May 2029).
- It also disclosed additional order contracts on May 4 and May 11.
- On May 7 it announced an investor briefing (IR).
- On the other hand, the success or failure of a large defense project is a variable that can move the share price sharply, and the recent slide appears to reflect fading expectations for a large special-purpose-ship order.
- The strengths are clear.
- An order backlog of ₩34 trillion, centered on LNG carriers, secures about three years of work.
- As high-priced orders are delivered, margins are climbing in steps.
- ROE in the 20% range supports profitability as well.
- The 20x P/E on last year's earnings looks high, but with profit rising fast it stands at about 13x on a this-year basis.
- That is below peer Samsung Heavy Industries' 34x on last year's earnings.
- There are cautions too.
- The 226% debt ratio is high, so a downturn in the industry could increase the burden.
- Large projects such as defense and offshore plants make growth expectations swing widely depending on whether orders are won.
- If the merchant-ship ordering cycle slows, new-order prices and margins could be squeezed together.
- In short, the structure is strong while LNG-carrier profit flows through and defense-order momentum continues, and weaker when signs of a large-order miss or slowing merchant-ship ordering appear.
🔎 Valuation vs peers Fairly valued
Compared against Korea's three large shipbuilders, whose business substance (LNG carriers, special-purpose ships and the like) overlaps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HD Korea Shipbuilding & Offshore Engineering | 10.69x | 1.74x | 16.32% |
| Samsung Heavy Industries | 33.80x | 4.44x | 13.15% |
On last year's earnings, the 20.2x P/E and 4.07x P/B sit in the middle of the peer set, above HD Korea Shipbuilding & Offshore Engineering (11.1x) and below Samsung Heavy Industries (34.1x). But Hanwha Ocean's profit is rising fast, so a P/E on last year's earnings overstates the real multiple. Reflecting that first-quarter 2026 net profit rose 131.8% year over year, this year's expected P/E on net profit is about 13x, clearly below Samsung Heavy Industries' 34x. Given profitability (ROE 20%) and the order backlog, the current price can be seen as a fairly valued level that already prices in some of the profit growth. That said, the high debt ratio and the fact that the success or failure of large defense orders can swing the valuation sharply leave room for re-valuation in either direction depending on the industry and order flow.
Price history Close · MA20 · MA60
The latest close is ₩78,600 and the market capitalization is ₩24.1 trillion. The price sits below its 20-day moving average (₩108,475) and below its 60-day moving average (₩118,467). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 33.4, a neutral level. The one-month change is -28.7%, the three-month change is -35.0%, and the position relative to the 52-week high is -47.6%. Relative strength versus the KOSPI is 15 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 14% of all stocks. Over the past three months it lagged the index by 50.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -50.43% / 6M -59.28% / 12M -56.38%
Key metrics vs sector median
Valuation
The P/E of 19.33x is above the sector median (12.45x). The P/B of 3.90x is above the sector median (1.64x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 20.2%, above the sector average (15.0%). The operating margin is 9.1%. The debt ratio is 226.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.9B | $7.1B | $8.5B | +18.63% ↓ slower |
| Operating profit | -$130.2M | $157.7M | $773.8M | +390.84% |
| Net profit | $106.0M | $350.0M | $825.7M | +135.90% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.0B | $3.2B | $4.9B | $7.1B | $8.5B |
| Operating profit | -$1.2B | -$1.1B | -$130.2M | $157.7M | $773.8M |
| Net profit | -$1.1B | -$1.2B | $106.0M | $350.0M | $825.7M |
| Revenue CAGR | 4-yr avg 29.92% | ||||
Revenue rose 18.6% year over year (2023 ₩7.4 trillion → 2024 ₩10.8 trillion → 2025 ₩12.8 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 390.8% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 29.9%. The two-year revenue CAGR is 31.4%. In the most recent quarter (Q1 2026), revenue was 2.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 20.2% points to solid profitability.
- Revenue grew 18.6% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-27EarningsFirst-quarter 2026 preliminary earnings disclosure — revenue ₩3.2099 trillion, operating profit ₩441.1 billion (up 70.6% year over year), net profit ₩500 billion (up 131.8%). Quarterly operating margin 13.7%.Confirms improving margins as high-priced LNG carriers are delivered. A near- and medium-term positive as the rising-profit path continues and earnings visibility improves. Source
- 2026-05-29UpdateSingle-sale/supply contract — supply of two LNG carriers to a shipowner in Africa, contract value ₩756.3 billion (construction period May 2026 to May 2029).New high-value LNG carrier orders reinforce the backlog and future revenue. A positive that shores up the medium-term earnings base. Source
- 2026-05-11UpdateSingle-sale/supply contract — new ship order. Order disclosures continued on May 4, May 11 and other dates, keeping order inflow going.Contributes to maintaining an order backlog above ₩34 trillion. A medium-term positive that supports earnings visibility by securing about three years of work. Source
- 2026-05-07IRInvestor briefing (IR) announcement — the company signals a session to explain its business status, orders and earnings to the market.An official channel for the company to communicate on orders and earnings, improving access to information needed for investment judgment. Source
- 2026-05-13FilingFirst-quarter 2026 report filed — a periodic disclosure with consolidated financial statements and results by business segment.Officially confirms the merchant-ship (LNG carrier) revenue mix and margin improvement. A factor that supports the credibility of the results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Single supply/sales contract
- 2026-05-28Single supply/sales contract (amended)
- 2026-05-18Single supply/sales contract (amended)
- 2026-05-14Disclosure
- 2026-05-13PeriodicQuarterly report
- 2026-05-11Single supply/sales contract
- 2026-05-07Disclosure
- 2026-05-04Single supply/sales contract
- 2026-04-27Disclosure
- 2026-04-27EarningsFair-disclosure notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.