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HMM |
[Alpha Biz= Reporter Kim Minyoung] On the 12th, Hana Securities lowered its target price for HMM, a shipping company, from 18,000 to 16,000 Korean won, citing concerns over a potential future slowdown in cargo volume growth. The previous day's closing price was 17,980 Korean won.
Hana Securities noted, "Excluding the Hong Kong dispute, the average container capacity growth rate from 2023 to 2025 is expected to be 7%, surpassing the growth rate of cargo volume. Current cargo volume growth is partly due to stockpiling demand for safety stocks, potentially pulling forward future demand."
They also mentioned, "Starting from February next year, there will be a significant restructuring in the shipping industry alliances, and as a result, the container capacity of the alliance HMM belongs to is expected to decrease by about 40%, with one of the largest members, Hapag-Lloyd, exiting the alliance. MSC's initiation of independent operations may also trigger freight rate competition."
Regarding the recent increase in the Shanghai Containerized Freight Index (SCFI), the full impact is not expected to be fully reflected in HMM's second-quarter performance, as Assistant Researcher Ahn pointed out.
Ahn explained, "The SCFI increase has steepened since May, but considering that freight rates are determined at the time of booking, freight rates to North America and Europe were likely set before May, and thus may not be fully reflected in the second-quarter results."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
