HSD Engine Maintains Stable Growth in Sales Performance

[Asia Economy Reporter Koh Hyung-kwang] Hana Financial Investment maintained the target price of 4,500 KRW on the 18th, expecting HSD Engine's operating performance to show stable growth as Korean shipyards are smoothly building ships and ship orders are also showing solid performance.

Researcher Park Moo-hyun of Hana Financial Investment diagnosed, "With the increase in offshore oil cargo volume and the rise in tanker freight rates, tanker shipping companies are seeing increased profits and improved cash flow, which enhances their capacity to place orders for tanker ships."

Researcher Park said, "Recently, Samsung Heavy Industries ordered two LNG-powered VL tankers, and Hyundai Mipo Dockyard secured orders for five methanol carriers using methanol as fuel from Japanese shipowners," emphasizing, "It is important to note that rather than just an increase in tanker ship orders, orders for ships equipped with LNG and methanol propulsion technologies continue."

He added, "Lower oil prices and changes in ship fuel increase the demand for dual-fuel propulsion engines, which further enhances HSD Engine's growth potential," and predicted, "Shipyards' shipbuilding volume is also steadily increasing, so HSD Engine's operating performance in the first quarter of this year is expected to reach around 7 billion KRW, exceeding initial expectations."

Researcher Park explained, "Since February 18, international oil prices have fallen by 61.6%, but the stock prices of overseas tanker shipping companies have risen," stating, "Historically, lower oil prices increase offshore oil cargo volume."

This content was produced with the assistance of AI translation services.