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Yuanta Securities Initiates Coverage on Hanwha Engine as Key North American Power Play

Producer Manufacturing · Industrial Machinery · yonhap_finance · 2026-08-24

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Yuanta Securities initiated coverage on Hanwha Engine with a 'Buy' rating, highlighting its role as the group's primary listed vehicle for North American expansion.

What Happened

Coverage Initiation: Yuanta Securities has initiated coverage on Hanwha Engine with a 'Buy' rating and a target price of 107,000 KRW. The firm highlights the company as a pivotal listed entity for the group's expansion into the North American power generation market.

Strategic Listed Platform: As the only publicly traded company under the Hanwha Energy umbrella, Hanwha Engine serves as a critical bridge between the group’s power generation value chain and the capital markets. This unique position is expected to gain prominence as the group scales its operations.

Core Business Performance: The company's core marine engine business is showing robust growth. Rising global newbuild prices and an increasing sales mix of engines for ultra-large container ships are driving significant margin improvements.

Growth Outlook: Beyond its core business, the entry into the power generation engine market for data centers provides a strong growth catalyst. Analysts expect consistent profit growth through 2028, noting that the stock has significant upside potential even without accounting for the data center business.

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