Hanwha Engine and HD Hyundai Marine Engine posted record first-half orders, according to a July 21 Daol Investment & Securities report. Their Korean stock prices fell over 50% from April highs as market capital shifted toward semiconductors. The engine makers' H1 intake matched or exceeded prior full-year totals. Daol analyst Choi Kwang-sik stated engine manufacturers will sustain growth through 2028, a longer cycle than shipbuilders' 2026–2027 peak.
Hanwha Engine and HD Hyundai Marine Engine Report Record H1 Orders
Hanwha Engine's first-half orders totaled 1.4348 trillion won, approaching last year's annual figure of 1.7706 trillion won. HD Hyundai Marine Engine secured 619.9 billion won in H1 orders, surpassing last year's full-year total of 615.9 billion won. Daol Investment & Securities named the two companies its top picks within the shipbuilding sector, citing the order momentum.
The brokerage expects order volumes to accelerate in the second half as Chinese shipyards increase orders for container ships and very large crude carriers (VLCCs). HD Hyundai Marine Engine received 446.3 billion won in orders from Chinese shipyards in H1 alone.
Daol Investment & Securities Raises 2028 Revenue Forecasts
Daol revised its 2028 revenue forecast for HD Hyundai Marine Engine from 1.0449 trillion won to 1.1475 trillion won. The brokerage also raised Hanwha Engine's 2028 revenue projection from 1.8611 trillion won to 2.2232 trillion won. The upward revisions reflect the H1 order intake and anticipated Chinese shipyard demand.
Analyst Choi Kwang-sik States Engine Growth Cycle Extends to 2028–2029
Choi Kwang-sik, a Daol Investment & Securities analyst, said shipbuilders face a peak-out in 2026–2027, while engine manufacturers will peak in 2028–2029. He attributed the longer cycle to engine companies' ability to expand production capacity and convert rising orders into revenue, unlike shipbuilders constrained by dock shortages. Choi stated, "It is difficult to explain why engine stocks, which have fallen the most among shipbuilding stocks recently, are trading at these levels."
Korean Engine Stocks Close Higher on July 21 Despite 50% Decline from April
Both stocks declined more than 50% from their April highs. On July 21, Hanwha Engine closed at 44,400 won, up 4.72% from the previous session. HD Hyundai Marine Engine closed at 58,200 won, up 10.02%. Daol's target prices are 91,000 won for Hanwha Engine and 144,000 won for HD Hyundai Marine Engine, more than double current levels.
FAQ
What were Hanwha Engine's first-half orders?
Hanwha Engine's first-half orders totaled 1.4348 trillion won, according to the July 21 Daol Investment & Securities report.
Why did Daol Investment & Securities raise its 2028 revenue forecasts for the two companies?
Daol raised HD Hyundai Marine Engine's 2028 revenue forecast from 1.0449 trillion won to 1.1475 trillion won and Hanwha Engine's from 1.8611 trillion won to 2.2232 trillion won, reflecting record H1 orders and expected demand from Chinese shipyards.
