Korean Brokerages Downgrade Shipbuilders and Automakers on Q2 Misses; Samsung Heavy Industries Seen Most Stable for H2 2026

According to Financial News on July 27, major Korean brokerages downgraded target prices for three companies following Q2 earnings disappointments. Shinhan Investment downgraded Samsung Heavy Industries (010140) to 32,000 won from 37,000 won, citing one-time wage ruling costs that depressed Q2 operating profit. However, the brokerage maintained a Buy rating, noting the company's dominant competitiveness in floating liquefied natural gas production vessels and strong order backlog, having already secured 72% of its annual order target by July.

DS Investment cut its target for Hyundai Rotem (064350) to 236,000 won from 270,000 won, citing margin pressure from lower-profit domestic contracts and the conclusion of Poland's K2 tank contract phase one. Samsung Securities downgraded Kia Motors (000270) to 210,000 won from 240,000 won, attributing Q2 profit shortfalls to expanded electric vehicle sales incentives in Europe. Both brokerages maintained Buy ratings, expecting recovery in H2 2026 as Hyundai Rotem ramps up K2 phase two production and Kia expands higher-margin hybrid vehicle sales.