Korea Investment Securities stated on the 15th that the potential for earnings improvement in 2027 and valuation attractiveness are becoming increasingly prominent for Hanwha Engine, assigning an investment rating of 'Buy' and a target price of 114,000 won. Based on the previous day's closing price, this target price represents an upside potential of approximately 111.5% over the current stock price.

In its report, Korea Investment Securities assessed that based on the secured order backlog, Hanwha Engine will be able to operate at nearly 100% of its production capacity following its facility expansion. Accordingly, the firm analyzed that stable production and earnings growth are possible without relying on separate demand forecasts. In particular, with the order backlog in the medium-speed engine segment reaching 167 units and a high likelihood of additional orders in the second half of the year, the securities firm projected that this will be positively reflected in future earnings outlooks.

The brokerage firm expects that as Hanwha Engine's earnings growth trend continues, the market's 2027 earnings estimates will also gradually be revised upward. Therefore, it evaluated that the current stock price level is situated in an attractive valuation range, taking into account future profit increases.

Korea Investment Securities stated, "The secured order backlog alone is sufficient to fill most of the production capacity after the expansion," adding, "A phase in which earnings support the stock price is likely to continue."

The market believes that the increase in engine demand, driven by a robust shipbuilding and offshore industry as well as growing demand for eco-friendly vessels, will serve as a medium- to long-term growth driver for Hanwha Engine.

[※ This article was written with the assistance of AI and is not intended to solicit investment. Investment decisions and responsibilities lie solely with the investor.]