[Click eStock] "Halla IMS Set to Benefit from IMO Environmental Regulations"

On July 22, GL Research analyzed that Halla IMS is expected to benefit from the International Maritime Organization (IMO)'s environmental regulations. The firm did not provide an investment opinion or target price.

Halla IMS is a specialized shipbuilding equipment company that develops and supplies level measurement as well as integrated control and safety systems for ships. Park Changyoon, a researcher at GL Research, stated, "The IMO's ship regulations, which aim for carbon emission net-zero by 2050, are driving a surge in demand for the precision measurement and safety systems produced by Halla IMS." He added, "The strengthening of IMO environmental regulations is creating structural growth opportunities for Halla IMS."

Researcher Park continued, "Eco-friendly ships require highly accurate measurement systems for various fluids such as cargo holds and fuel tanks in order to maximize fuel efficiency. Therefore, demand for Halla IMS's cargo tank measurement system (CTMS) and level measurement systems is expected to continue expanding."

He emphasized, "When flammable or toxic gases such as LNG, methanol, or ammonia are used as fuel, any leakage can lead to explosions or casualties, making advanced gas detection and safety systems essential." He projected that demand for Halla IMS's integrated safety solutions, which are linked to its gas detectors, will continue to increase.

He also noted that the trend of ship aging is expected to drive growth in the company's new ship repair yard business. He said, "As a significant portion of the world's operating vessels are aging, regular repairs and maintenance have become essential." He added, "In addition, due to the impact of strengthened IMO environmental regulations, demand for the repair and replacement of eco-friendly equipment on existing ships is rapidly increasing."

He explained, "Halla IMS is securing new growth engines by expanding beyond its traditional shipbuilding equipment business into the ship repair yard sector." He further stated, "As of the first quarter of this year, revenue from the ship repair segment was 2.4 billion won, and annual revenue is expected to reach approximately 10 billion won."

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