[Click eStock] "Korea Carbon, Growth Stability Highlighted by Large-scale Orders... Target Price Up"

[Asia Economy Reporter Eunmo Koo] DB Financial Investment has raised the target price for Korea Carbon from 10,300 KRW to 11,000 KRW, citing stable growth prospects driven by securing LNG insulation material orders through large-scale contracts until 2022 and additional order expectations.

Korea Carbon announced on the 24th that it had signed a supply contract worth a total of 194.5 billion KRW for LNG insulation materials with Samsung Heavy Industries until the end of 2022. Hongkyun Kim, a researcher at DB Financial Investment, stated in a report on the 25th, "This LNG insulation material order from Korea Carbon is estimated to include all LNG carriers in Samsung Heavy Industries' order backlog for which insulation material suppliers had not yet been selected."

Additional large-scale LNG insulation material orders from Mozambique, Russia, Qatar, and other regions are expected to directly benefit Korea Carbon. The LNG insulation material orders newly secured by Korea Carbon this year amount to 268.8 billion KRW so far. Researcher Kim said, "As of the end of September this year, the order backlog is estimated to be around 300 billion KRW, and Samsung Heavy Industries and Hyundai Heavy Industries Group are each close to securing orders for LNG carriers for the Mozambique LNG project ordered by Total." He added, "Furthermore, additional joint construction contracts for LNG carriers with Samsung Heavy Industries and the Zvezda Shipyard in Russia are anticipated, and large-scale LNG carrier orders from the Qatar project will be sequentially recognized mainly by the 'Big 3' shipbuilders." Researcher Kim predicted, "In particular, Korea Carbon will directly benefit from orders for Mark3 type LNG carriers."

The investment opinion remains 'Buy,' and the target price has been raised to 11,000 KRW. Researcher Kim analyzed, "In the second quarter of this year, Korea Carbon showed a performance improvement effect led by LNG insulation materials, with quarterly sales exceeding 100 billion KRW. Through this large-scale order, Korea Carbon has secured LNG insulation material work until 2022, and with additional order expectations, its stable growth potential stands out even more."

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