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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] DS Investment Securities has projected that Hanwha Ocean will experience an increase in new orders. They maintain a "Buy" recommendation and a target price of 42,000 won, citing a positive outlook for the company amidst rising maritime defense momentum post-Russia-Ukraine conflict.
DS Investment Securities notes that while the shipbuilding sector had been on an upward trend, stocks weakened in August due to a lack of momentum following the second quarter earnings events and the summer holiday period. Recent issues such as a weakening dollar and labor strikes have led to increased stock volatility, but DS Investment Securities considers these merely temporary adjustments, providing a buying opportunity.
They further explained that despite concerns over exchange rate impacts, Samsung Heavy Industries' stock should not be affected significantly, although it has experienced declines. Labor strikes and low participation rates are not expected to have a substantial impact on operational efficiency.
Looking ahead, DS Investment Securities anticipates that Hanwha Ocean's new orders will rise starting in September. Reports suggest that major orders are being prepared by companies like Maersk, and a significant $5 billion LNG vessel order from Qatar is expected, along with inquiries and negotiations for various other types of vessels such as FSRUs and VLCCs.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
