HD Korea Shipbuilding & Offshore Engineering: 2Q26 OP beat on robust Samho OPM at surprising 23%; maintain OW

Research evidence excerpt

HD Korea Shipbuilding & Offshore Engineering: 2Q26 OP beat on robust Samho OPM at surprising 23%; maintain OW

J P M O R G A N Asia Pacific Equity Research

29 July 2026

HD Korea Shipbuilding & Offshore

Engineering Overweight

009540.KS, 009540 KS

2Q26 OP beat on robust Samho OPM at surprising Price (29 Jul 26):W334,000

23%; maintain OW ▼Price Target (Dec-27):W500,000 Prior (Dec-26):W580,000

KSOE’s 2Q26 sales/OP were 8%/17% above our estimates, with OPM coming in

at 18.4% (vs. JPMe 17.1%). The beat was mainly due to: 1) strong shipbuilding Korea Shipbuilding

OPM especially from Samho at a surprising 22.5%, on the back of continued mix Simon Han AC

improvements and productivity gains; and 2) Engine margin profile maintaining (82-2) 758-5711

strength from previous quarters on growing DF mix. The company continues to simon.x.han@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

witness meaningful inquiries across all segments, notably the commercial business Branch

(achieving a ~100% run-rate as of 1H26), engine business (both vessel & non- Jeongsuk Woo

vessel), as well as navy (several pipelines across ASEAN, Europe, and LATAM). (82-2) 758 5703

We fine-tune our estimates post the 2Q results, and with updates to our HHI jeongsuk.woo@jpmorgan.com

assumptions, we cut our Dec-27 PT for KSOE to W500K (from W580K) and J.P.BranchMorgan Securities (Far East) Limited, Seoul

maintain OW.

Karen Li, CFA

• 2Q26 earnings review: KSOE’s 2Q26 sales were a slight beat by 8% vs. (852)karen.yy.li@jpmorgan.com2800-8589

JPME, while OP came in 17% above our estimates with OPM at 18.4% thanks J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

to a robust OPM from the commercial segment alongside the engine business Morgan Broking (Hong Kong) Limited