HD Hyundai, Samsung, Hanwha Ocean: Who Will Laugh in 2026? | Eom Kyung-ah, Shin Young Securities Research Fellow

Summary

Eom Kyung-ah, a research fellow at Shin Young Securities, discusses the 2026 outlook for Korean shipbuilders after visiting major yards. She remains positive on the long shipbuilding cycle, favors the HD Hyundai group with HD Korea Shipbuilding & Offshore Engineering as top pick, and sees Samsung Heavy Industries' valuation gap narrowing. The discussion covers capacity expansion, overseas production, shipyard automation, and defense partnerships.

• Shipbuilding cycle is considered unusually long, with earnings improvement beginning in 2025 and capacity expansion planned for 2027 onward.
• Eom favors the HD Hyundai group; HD Korea Shipbuilding & Offshore Engineering is her top pick and HD Hyundai Heavy Industries is the leader.
• Samsung Heavy Industries is seen as undervalued because it consistently met guidance and may achieve 2026 order and earnings targets while US defense partnerships develop.
• Korean shipbuilders are restarting idle docks and pursuing overseas capacity expansion in India, Southeast Asia, and via Chinese outsourcing.
• Shipyard automation and welding/painting robots are expected to spread, though full automation remains limited by custom vessel orders.
• Hanwha Ocean is mentioned mainly in the context of defense progress rather than as a standalone recommendation.
• The guest suggests the first quarter is an accumulation period and notes foreign investors have been steady buyers of shipbuilding shares.