Korea Stock Market Insights

Tag: 013810

  • Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean for Naval Steering Gear: A Catalyst for Growth?



    Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean for Naval Steering Gear: A Catalyst for Growth? 대표 차트 이미지






    Speco Wins KRW 4.6 Billion Contract with Hanwha Ocean for Naval Steering Gear

    Speco has secured a contract worth KRW 4.6 billion with Hanwha Ocean to supply steering gear and other components for naval vessels. The contract period spans from September 11, 2025, to December 31, 2029, totaling 4 years and 3 months. This represents approximately 14.3% of Speco’s 2024 revenue, suggesting a substantial contribution to revenue growth.

    Contract Significance: Boosting Marine Machinery Business and Profitability

    This contract is projected to positively impact Speco’s marine machinery business. The nature of the defense and offshore plant business typically commands high margins, potentially leading to improved profitability. Additionally, supplying components for naval vessels strengthens Speco’s position in the military and specialized ship markets, contributing to future growth momentum.

    Key Investment Highlights

    • Accelerated growth in marine machinery: Increased orders are anticipated based on advanced technologies like stabilized steering gear.
    • Stable revenue stream: The 4-year and 3-month contract duration provides a stable revenue base.
    • Improved profitability potential: Supplying military components offers higher margins, contributing to overall profitability improvement.

    Risk Factors and Investment Considerations

    Volatility in the construction market and sluggish performance in the wind power business remain risk factors. Furthermore, diversification efforts are necessary to reduce reliance on specific customers. Investors should consider these factors comprehensively when making investment decisions.



    FAQ

    What is the contract value between Speco and Hanwha Ocean?

    KRW 4.6 Billion.

    How will this contract impact Speco?

    It is expected to boost Speco’s marine machinery business, contribute to stable revenue, and improve profitability.

    What are Speco’s main business segments?

    Construction machinery, marine machinery, and wind power.









    Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean for Naval Steering Gear: A Catalyst for Growth? 관련 이미지
    Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean for Naval Steering Gear: A Catalyst for Growth? 관련 이미지




  • Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean: A Boost for Defense Business



    Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean: A Boost for Defense Business 대표 차트 이미지






    Speco’s KRW 4.6 Billion Deal with Hanwha Ocean: What Happened?

    On September 11, 2025, Speco announced a significant contract with Hanwha Ocean for the supply of steering gear and other components for naval vessels. This long-term contract, valued at KRW 4.6 billion, spans from September 11, 2025, to December 31, 2030 (5 years and 3 months). This represents 16.97% of Speco’s 2024 consolidated revenue, indicating a substantial contribution to the company’s revenue growth.

    Why is this contract significant?

    • Stable Revenue Stream: The long-term contract ensures predictable revenue flow for the next 5 years and 3 months, strengthening Speco’s business planning.
    • Expected Profitability Improvement: Supplying high-value-added products like steering gear and other components is projected to positively impact Speco’s profitability.
    • Enhanced Defense Business Competitiveness: The contract with Hanwha Ocean, a leading domestic defense company, validates Speco’s technical capabilities and credibility.
    • Business Diversification: This deal will drive growth in Speco’s deck machinery business segment, contributing to a more diversified and stable business portfolio.

    What does this mean for investors?

    This contract is a positive sign for Speco’s mid-to-long-term growth. Investors should pay close attention to the growth potential within the defense sector. However, continuous monitoring of external factors like raw material prices and exchange rate fluctuations is also crucial.

    Key Points to Watch:

    • Securing additional defense contracts
    • Revenue and profitability improvement in the deck machinery business
    • Fluctuations in raw material prices and exchange rates

    FAQ



    What is the value of the contract?

    KRW 4.6 billion.

    Who is the counterparty to the contract?

    Hanwha Ocean.

    What is the duration of the contract?

    5 years and 3 months, from September 11, 2025, to December 31, 2030.

    What is the impact of this contract on Speco?

    It’s expected to have a positive impact, including stable revenue, improved profitability, enhanced competitiveness in the defense business, and business diversification.









    Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean: A Boost for Defense Business 관련 이미지
    Speco Secures KRW 4.6 Billion Contract with Hanwha Ocean: A Boost for Defense Business 관련 이미지




  • Speco (013810) H1 2025 Earnings Analysis: Turnaround Potential and Investment Strategy

    1. What Happened at Speco?

    Speco recorded revenue of KRW 15.245 billion in H1 2025, marking an impressive 54% year-on-year increase. The recovery of the construction equipment sector and strengthened sales in the Middle East and Southeast Asia drove this growth.

    2. Why These Results?

    The main drivers behind the revenue growth are the normalization of the construction equipment market and increasing demand for eco-friendly equipment. Securing a stable revenue base, such as the supply contract for ship stabilizers and steering gears, also contributed positively.

    3. So, What’s Next for Speco?

    Speco demonstrated turnaround potential by not only increasing revenue but also significantly narrowing its operating loss. The stable performance of the construction machinery and marine machinery businesses, along with the growth potential of new eco-friendly energy businesses, are positive signs. However, improving profitability, which remains in the red, is the top priority. The sluggish performance of the Mexican wind power business, intensifying competition in the construction machinery market, and volatility in exchange rates and raw material markets require continuous monitoring.

    4. What Should Investors Do?

    While Speco shows positive momentum, investment decisions should be made cautiously. It’s advisable to closely monitor the trend of profitability improvement and the resolution of macroeconomic uncertainties, considering a dollar-cost averaging strategy. Active investment can be considered upon confirmation of a return to profitability and sustained earnings improvement.

    What was Speco’s revenue in H1 2025?

    Speco’s revenue in H1 2025 was KRW 15.245 billion, a 54% increase year-on-year.

    What are Speco’s main businesses?

    Speco’s main businesses are construction machinery, marine machinery, wind power generation, and recycled asphalt plants.

    What should investors be aware of when considering Speco?

    While Speco has growth potential, improving profitability and managing market risks are key challenges. Investors should consider these factors.