[Click eStock] Hyundai Mipo Dockyard's Orders... Improvement Starting from 2022

[Asia Economy Reporter Lee Seon-ae] Daishin Securities announced on the 24th that it maintains Hyundai Mipo Dockyard as its top pick stock in the shipbuilding sector. The investment opinion of "Buy" and the target price of 87,000 KRW were also maintained, based on the judgment that conditions will improve starting from 2022.

Hyundai Mipo Dockyard recently disclosed orders for 10 container ships and LNG-powered 2,000 TEU-class vessels. The total contract amount is 745.6 billion KRW, with a unit price of 63 million USD per ship. Among the world's 6,280 container ship fleet, feeder container ships (Feeder, typically referring to vessels under 3,000 TEU) that operate on short routes number 3,824, accounting for 61% of the total. The 1,500 to 3,000 TEU capacity ships, which are mainly ordered, number 1,431, representing 23% of the total. This year, Hyundai Mipo Dockyard also secured an order for one 2,100 TEU methanol-powered container ship, positioning itself as a leading small-to-medium shipyard with prospects for mid-to-long-term growth through expansion in the eco-friendly, high value-added ship market.

As of 2021, new orders reached 4.9 billion USD, exceeding the annual target of 3.5 billion USD by 140%. The order backlog based on sales is about 5.6 billion USD, equivalent to 2.3 years of 2020 sales volume.

Researcher Lee Dong-heon of Daishin Securities stated, "In 2021, Hyundai Mipo Dockyard secured orders for 36 PC vessels, 39 container ships, 18 LPG carriers, and 11 others, totaling 104 ships. Due to the relatively short delivery times characteristic of small-to-medium shipbuilders, sales are expected to surge from 2022 as the backlog increases. With the container ship boom, oil price recovery, and sharp rise in LNG prices, the forward markets for major ship types are all favorable. Additionally, with dock slot completions by 2023, ship prices are also rising, making Hyundai Mipo Dockyard the shipbuilder expected to achieve the fastest turnaround," he explained.

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