Stronger won lifts Korean Air outlook, pressures Hanwha
The U.K.’s aviation system has stabilized significantly after an air-traffic-control outage earlier in the week grounded hundreds of flights, according to aviation analytics firm Cirium. Of the 3,028 flight arrivals scheduled at U.K. airports on Thursday, 54 were canceled or not operating; 47 of the 3,033 scheduled departures were affected — figures Cirium described as slightly higher than on a normal day.
The Cirium figures appeared in a Wall Street Journal market-talk roundup that also collected separate analyst notes on Korean Air Lines, Hanwha Ocean, and Malaysian construction firms linked to the planned Johor Bahru-Singapore rapid transit system.
In a note, Mirae Asset Securities analyst Jay JH Ryu forecast that Korean Air’s third-quarter operating profit would rebound sharply, projecting 488.7 billion won — a 210.2% increase from the year-earlier quarter. Ryu cited strong peak-season passenger demand and improving cargo performance as primary drivers, with international passenger traffic and yields expected to rise 8.3% and 9.1%, respectively. A stronger won should also help lower fuel, lease, and interest expenses, Ryu said. The expected December merger with Asiana Airlines will generate synergies from the fourth quarter, supporting Korean Air’s earnings, the analyst wrote. Mirae maintained its buy rating and raised its target price to 37,000 won from 33,000 won. Shares were down 1.7% at 29,300 won.
Nomura analyst Eon Hwang cut his operating-profit forecasts for South Korean shipbuilder Hanwha Ocean by 9.3% for 2026, 13.5% for 2027, and 11.5% for 2028, citing the won’s appreciation against the dollar. Hwang expects Hanwha’s new shipbuilding contracts to rise about 47% to $14.7 billion this year, with a decline in new containership orders likely offset by an increase in new LNG vessel orders. Meaningful new orders from the U.S. Navy are unlikely, given congressional opposition to constructing naval ships overseas, Hwang said. Nomura cut its target price for Hanwha to 56,000 won from 63,000 won and maintained a reduce rating on the stock. Shares were last 3.8% lower at 84,800 won.
Maybank IB analyst Yin Shao Yang said the Johor Bahru-Singapore rapid transit system link will likely drive another construction boom in the Malaysian city, with its planned opening in late 2026 or early 2027 set to transform Bukit Chagar into a major transport hub. In a note, Yang said nearby developments valued at more than 11 billion ringgit could benefit from stronger pedestrian traffic, cross-border commuting, retail spending, and property demand. Sunway Construction is likely a key beneficiary, with a possible 1.0 billion ringgit contract from an MRT Corp joint venture potentially adding about 60 million ringgit to net profit. A proposed 10 billion ringgit Johor elevated transit network could further boost construction across Greater Johor Bahru when completed in 2030–2031, Yang added. Maybank maintained a positive rating on Malaysia’s construction sector.
The market-talk roundup was published Thursday exclusively on Dow Jones Newswires.