Hanwha Ocean Stock Doubles: Top Performer of the Year with U.S. Collaboration Boost

# Surge in Defense and Consumer Stock Prices, While Battery Makers Face Downgrades SEOUL—Shares of South Korean defense and consumer goods companies are experiencing significant target price hikes, highlighted by Hanwha Ocean and Samyang Foods. Conversely, electric vehicle (EV) battery makers are facing notable downgrades, reflecting investor caution over sector-related challenges. ## Hanwha Ocean Drives Target Price Increases Hanwha Ocean has seen its target price more than double from the end of 2023, leading the pack of domestically listed companies with the highest upward revisions. According to financial data provider FnGuide, as of April 29, Hanwha Ocean's average target price surged by 102.92%, climbing from 39,333 won to 79,813 won. Shares closed at 78,900 won on May 2. The company's exceptional first-quarter performance, with an operating profit of 258.6 billion won—far exceeding market expectations of 186.3 billion won—has fueled investor optimism. Enhanced collaboration with the United States in shipbuilding also bolstered the forecast. NH Investment & Securities analyst Jung Yeon-seung, who set the highest target price of 110,000 won for Hanwha Ocean, stated, "Enhanced profitability in the commercial ship division and increased capital expenditures support robust growth in the marine and shipbuilding sectors. We increased our operating income estimates for 2025 through 2027 by 39%, 32%, and 25%, respectively, resulting in a higher target price." Despite an 11.65% decline in Hanwha Ocean's share price over three trading sessions following Korea Development Bank's decision to divest part of its stake, foreign investors remained optimistic. The state-owned bank revealed on April 29 that it sold 13 million shares via block trade at 81,650 won per share (a 12.3% stake). Foreign investors net-purchased 692.5 billion won worth of Hanwha Ocean shares in after-hours trading, reversing a net sell of 235 billion won during regular trading. This substantial foreign inflow underscores growing international confidence in Hanwha Ocean, reflecting 551.4 billion won of foreign net purchases that day. ## Defense Stocks See Upward Revisions Defense stocks have also experienced multiple target price hikes. Hanwha Aerospace saw an 82.52% increase, from 461,500 won to 842,333 won, ranking third in gains. Hyundai Rotem and Hanwha Systems followed with rises of 69% and 49.26%, respectively. Jang Nam-hyun, an analyst at Korea Investment & Securities, linked the upgrades to export growth. "Korean defense firms are likely to achieve profit margins comparable to European counterparts, boosted by substantial overseas order backlogs," he explained. ## Consumer Goods and Food Companies Reap Gains, Led by Samyang Foods Consumer goods and food sectors have also performed admirably. Samyang Foods, known for its spicy "fire noodle" products, saw its target price climb by 36.76% to 1.11 million won. E-Mart achieved a similar increase, with a 36.8% target price jump, while entertainment giants YG Entertainment and SM Entertainment posted double-digit growth of 40.29% and 29.01%, respectively. ## EV Battery Makers Struggle With Downgrades In stark contrast, EV battery manufacturers faced significant target price downgrades. Samsung SDI led the declines with a 43.13% drop, from 454,418 won to 258,410 won. Other major downgrades included Posco Future M (-37.39%), LG Chem (-30.35%), and L&F (-32.23%). Hana Securities analyst Kim Hyun-soo highlighted the sector's cautious outlook: "The EV battery market must address key risks, including declining European market share and uncertainties related to the U.S. Inflation Reduction Act (IRA). Consequently, the overall investment sentiment for the sector remains 'neutral.'" --- ### Top 10 Target Price Increases as of April 29 | Company Name | Avg. Target Price (Year-End 2023 to April 2025) | Change (%) | |-----------------|-------------------------------------------------|------------| | Hanwha Ocean | 39,333 won → 79,813 won | 102.92 | | HD Hyundai Heavy Industries | 254,400 won → 484,294 won | 90.37 | | Hanwha Aerospace| 461,500 won → 842,333 won | 82.52 | | Dong Sung Finetec| 19,000 won → 33,667 won | 77.19 | | Hyundai Rotem | 79,781 won → 134,833 won | 69.00 | ### Top 10 Target Price Declines as of April 29 | Company Name | Avg. Target Price (Year-End 2023 to April 2025) | Change (%) | |-----------------|-------------------------------------------------|------------| | Samsung SDI | 454,418 won → 258,410 won | -43.13 | | Posco Future M | 266,882 won → 167,100 won | -37.39 | | LG Chem | 470,000 won → 327,368 won | -30.35 | | L&F | 160,667 won → 108,882 won | -32.23 | | WCP | 22,500 won → 14,667 won | -34.81 | Source: FnGuide