[Click eStock] Daishin "HMM, 2Q Surprise Earnings Exceed Estimates by 40%"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 6th that it maintains a buy rating and a target price of 60,000 KRW for shipping company HMM, expecting a surprise performance in the second quarter of this year that exceeds market forecasts by 40%, due to the continued rise in container freight rates and supply chain disruptions.

HMM's sales in the second quarter of this year are expected to increase by 118.6% year-on-year to 3 trillion KRW, and operating profit is projected to soar by 934.6% to 1.44 trillion KRW. Due to convertible bond stock conversion, a derivative product valuation loss of 894 billion KRW will be reflected, and capital surplus from stock issuance is expected to increase by 2.35 trillion KRW along with a 300 billion KRW increase in capital stock, while liabilities are expected to decrease by 2.65 trillion KRW.

Yang Ji-hwan, a researcher at Daishin Securities, said, "Due to port congestion and service disruptions by shipping companies, it is becoming increasingly difficult for cargo owners to secure space, making it highly likely that container freight rates will continue to rise and supply chain disruptions will persist," adding, "the second quarter performance is expected to be a surprise result exceeding market consensus by about 40%."

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