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Behind the Numbers: HAT-SAN — 5 Critical Details Hidden in the Financial Statements
HAT-SAN Shipbuilding (HATSN) has been one of the most talked-about companies on Borsa Istanbul since its IPO in 2023. At first glance, strong revenue figures, major projects, and a rising share price paint a highly positive picture. However, financial reports are like icebergs—what’s visible on the surface is often just a small portion of the massive structure hidden below. The real story lies in the footnotes, ratios, and interconnections among the figures.
This article aims to dissect HAT-SAN’s financial results for the first nine months of 2025 and uncover five critical details that might not be immediately apparent but hold vital clues about the company’s financial health and future potential. Let’s dive deep and discover the truth behind the numbers.
1. Why Did Profit Halve While Revenue Stayed Nearly the Same?
One of the most fundamental ways to understand a company’s financial health is to examine the relationship between revenue and profitability. HAT-SAN’s latest financials show a striking divergence in this regard.
In the first nine months of 2025, the company’s revenue decreased by only 1.6% compared to the same period last year—essentially flat. This suggests that the company has managed to maintain its sales volume.
However, profitability tells a completely different story. Gross profit plunged 52.06%, dropping from TL 620 million to TL 297 million, while profit from continuing operations fell 67.55%, from TL 792 million to TL 257 million.
The main culprit: a 9.95% increase in the cost of sales. In short, HAT-SAN had to spend much more to generate nearly the same level of revenue. Rising cost pressure eroded profit margins, sending an important warning signal to investors about the company’s operational efficiency and pricing power. As a result, HAT-SAN’s gross profit margin shrank from 18.63% to 9.08% in just one year—cut by more than half.
2. Massive P/E Ratio: Is the Market Ignoring Poor Results?
The Price-to-Earnings (P/E) ratio reflects how “expensive” a stock is relative to its earnings. HAT-SAN’s change in this ratio is particularly striking from a fundamental analysis perspective.
According to the financial statements, the company’s P/E ratio skyrocketed from 5.61 to 103.27 year-over-year. Such a drastic increase, despite collapsing profitability, seems paradoxical at first glance.
The most plausible explanation: the market is overlooking the current weak earnings and pricing in strong future profitability expectations. This enormous jump in the P/E ratio indicates that investors are betting on future performance rather than present results. However, if those expectations are not met, the stock price could face significant downside risk.
Interestingly, despite this fundamental weakness, technical indicators tell a different story. As the Finnet report puts it:
“Short-term indicators are mostly in buy territory. Medium-term indicators have also started to give clear buy signals recently.”
3. A Major Balance Sheet Shift: Cash Out, Fixed Assets In
HAT-SAN’s balance sheet clearly indicates that the company is undergoing a strategic transformation. The structural shift in its assets over the past year is compelling evidence.
The company’s current assets (cash, inventories, short-term receivables, etc.) fell 28.87%, while non-current assets (facilities, machinery, etc.) increased by 53.22%.
This shows that the company has converted its liquid assets into long-term production capacity through heavy investment. Indeed, both the activity report and the cash flow statement confirm TL 1,022,461,032 invested in tangible fixed assets during the period.
As a natural consequence, liquidity decreased, with the current ratio dropping from 2.09 to 1.67. Still, this move signals a strategic focus on future production and revenue growth potential. In essence, HAT-SAN is sacrificing today’s liquidity and profitability for tomorrow’s growth—a classic investment cycle play.
4. Almost Entirely Export-Oriented: Exposed to Global Winds
An examination of HAT-SAN’s revenue composition reveals that the company’s success is almost entirely dependent on international markets.
Out of TL 3.274 billion in gross sales for the first nine months of 2025, TL 3.127 billion (95.52%) came from exports.
While this high export share provides a strong advantage in terms of foreign currency income, there are concerns beneath the surface. A 34.16% decline in domestic sales and a surprising foreign exchange exposure lurking within the balance sheet indicate that the company remains highly vulnerable to global economic fluctuations.
5. Overlooked Risks: Negative FX Position and Antitrust Investigation
Within the depths of HAT-SAN’s financial and activity reports lie two risk factors that could have meaningful implications for its future.
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FX Risk:
Despite its high export ratio, the balance sheet shows the opposite of what one might expect: a net foreign currency liability position of TL 1,504,851,455 as of September 30, 2025. This means HAT-SAN’s foreign currency debts far exceed its FX assets. Thus, while a weaker Turkish lira might boost export revenues in TL terms, it could also inflate debt burdens and further pressure profitability. -
Legal Risk:
According to the activity report, Turkey’s Competition Authority has launched an investigation into 33 shipyard companies, including HAT-SAN. Although no penalties have been issued yet, this poses a layer of uncertainty and potential legal risk that investors should closely monitor.
Conclusion
HAT-SAN Shipbuilding is navigating a critical transformation period—where profitability is under significant pressure but major capacity-expanding investments are being made. While its strong export potential and growing asset base are positives, the company also faces several important risks: soaring valuation multiples, rising cost pressures, a negative FX position, and ongoing legal scrutiny.
The key question for investors is:
Can HAT-SAN’s bold investment strategy manage these mounting risks and steer the company toward calmer, more prosperous waters?