[Click eStock] "Dong Sung Fine Tec, Order Backlog Increased by 50% in One Year"

Hana Financial Investment Report

[Asia Economy Reporter Minji Lee] Hana Financial Investment maintained its buy rating and target price of 17,000 KRW for Dong Sung Fine Tec on the 3rd. With the order backlog reaching an all-time high, both operating performance growth and financial structure improvement are expected.

As of the first quarter of this year, Dong Sung Fine Tec's order backlog stood at 782.7 billion KRW, a 47% increase compared to a year ago. Considering that Dong Sung Fine Tec's sales performance over the past few years has been around 350 billion KRW, the current order backlog corresponds to about two years' worth of orders.

Park Muhyun, a researcher at Hana Financial Investment, explained, "Domestic shipyards' LNG ship order performance continues daily, and since Korean shipyards have virtually secured all global orders, Dong Sung Fine Tec's order backlog is naturally increasing."

Currently, the global LNG ship order backlog for vessels over 170K tons is 124 ships. Since 2014, the global LNG ship order backlog has been around 120 to 140 ships. This year, LNG ship orders by Korean shipyards, including Qatar LNG, are expected to significantly exceed the annual 50 ships shown over the past four years. Researcher Park said, "LNG ship order performance is expected to increase compared to last year, and Dong Sung Fine Tec's order backlog will further increase toward the second half of the year."

Supported by the favorable market conditions for LNG ship orders, Dong Sung Fine Tec's net borrowings have decreased, and cash flow has improved. At the end of the first quarter, net borrowings were around 24.5 billion KRW, significantly down from 83 billion KRW a year ago.

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