2026 Order Targets Raised! How Far Can Shipbuilders Rise? / Will Samsung Heavy Industries' Transformation and Hanwha Ocean's Expansion Strategy Succeed? | Um Kyung-ah, Research Fellow (Full Version)

Summary

Um Kyung-ah, research fellow at ShinYoung Securities, discusses the Korean shipbuilding sector with Hwang Yu-hyun of Shinhan Investment Securities. She argues that raised 2026 order targets, offshore/defense demand, stable costs, and favorable FX support earnings and a potential break above prior highs, especially in the first half. Samsung Heavy Industries and HD Hyundai Heavy Industries are highlighted, while Hanwha Ocean and Hanwha Systems offer US naval optionality but need concrete progress. China's low-cost dominance and US naval contract risks remain key watch items.

• Korean shipbuilders raised 2026 order targets, mainly on offshore and defense.
• Earnings visibility is seen through 2027, with possible 2028 revenue growth.
• Samsung Heavy Industries is highlighted for FLNG/offshore leadership.
• HD Hyundai Heavy Industries is seen as the scale leader with a 30% higher order target.
• Hanwha Ocean and Hanwha Systems are tied to US naval expansion and Philly Shipyard, but concrete orders and margins are uncertain.
• Special ships and US naval orders are key 2026 themes, though execution risks remain.
• China remains a strong low-cost competitor, pushing Korean yards toward high-value ships and overseas production.
• The speaker expects a strong first half for shipbuilding stocks and a weaker second half.