1. NPS Reduces Hanwha Engine Stake by 1.04%: What Happened?
The NPS reduced its Hanwha Engine shareholding by 1.04% on September 1, 2025, citing ‘simple additional acquisition/disposal.’ Although the change is for general investment purposes, the NPS’s investment decisions have a significant impact on the market, requiring investors’ attention.
2. Reasons for Divestment and Impact on Stock Price
This decision by the NPS can be interpreted in various ways, including profit-taking, portfolio adjustments, or a cautious outlook on future prospects. In the short term, it could act as selling pressure, potentially leading to a stock price decline. However, considering Hanwha Engine’s fundamentals and the market environment, the long-term impact is expected to be limited.
Positive Factors: Solid Fundamentals
- Strong Performance: Achieved sales of KRW 1.2022 trillion (+40.71%) and operating profit of KRW 71.5 billion (turned to profit) in 2024.
- Growth of the Eco-friendly Ship Market: Increasing demand for eco-friendly engines (accounting for 87.8% of Hanwha Engine’s sales) due to strengthening IMO environmental regulations.
- Solid Order Backlog: Secured an order backlog of KRW 33.563 trillion.
Risk Factors: External Environment Variables
- Possibility of Further NPS Divestment: Further selling by the NPS could negatively affect the stock price.
- Macroeconomic Uncertainty: Global economic slowdown, exchange rate volatility, and a downturn in the shipping market are risk factors.
3. Investment Strategy: Short-term vs. Long-term
Short-term Investors: Should be wary of the possibility of a stock price decline due to the NPS selling its shares. A strategy to prepare for short-term volatility expansion is necessary.
Long-term Investors: Considering the improving fundamentals and the growth prospects of the eco-friendly ship market, the long-term investment outlook is positive. However, continuous monitoring of macroeconomic risk factors is essential.