Hanwha Engine is experiencing a strong early trading session, with shares rising over 6% amid expectations for expansion in the artificial intelligence data center (AIDC) power engine business.
According to the Korea Exchange, as of 10:04 a.m. on September 17, Hanwha Engine's stock was trading at 51,000 won, up 2,950 won (6.14%) from the previous trading day.
On this day, SK Securities projected that Hanwha Engine is likely to secure demand for power engines not only for AIDC but also for floating data centers (FDC). The company, a licensee of Everllence (formerly MAN Energy Solutions), is expected to successfully finalize a licensing production contract for the 10-megawatt (MW) four-stroke medium-speed gas engine 'MAN 35/44G.'
SK Securities anticipates that the supply of power engines to North American data centers managed by Hanwha Energy will begin in earnest from 2028. They also analyzed that the 60MW FDC recently unveiled by Hanwha Ocean at 'Gastech 2026' is likely to be equipped with the same series of four-stroke medium-speed gas engines.
Production capacity expansion is also nearing completion. Hanwha Engine has secured an annual production capacity of 900MW for four-stroke medium-speed engines. This production line can manufacture engines for both marine applications and data centers. More than half of the available slots for 2027 have already been reserved for marine engines, with some of the remaining slots potentially filled with engines for AIDC.
Given that a single data center requires a power capacity of 250-400MW, it is believed that one large project could significantly deplete the remaining production capacity. If additional expansions are made to meet global demand for data center power engines, structural growth is also expected.
Han Seung-han, a researcher at SK Securities, stated, "The momentum for land power engines has not yet been reflected in the stock price," and recommended Hanwha Engine as the top pick in the shipbuilding equipment sector, maintaining a 'buy' rating and a target price of 90,000 won.
* This article has been translated by AI.
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