[Click e-Stock] "Pan Ocean, Target Price Raised on Portfolio Diversification"

Hana Securities announced on the 12th that it is maintaining its Buy investment rating on Pan Ocean and raising its target price to 6,400 won.

Ahn Dohyun, an analyst at Hana Securities, commented, "Pan Ocean's share price remains undervalued when considering its long-term growth drivers from portfolio expansion into very large crude carriers (VLCCs), tankers, and other segments," adding, "We present this year's full-year operating profit outlook at 562 billion won, up 14% year-on-year."

He went on to say, "Recently, demand for Capesize bulk carriers has been increasing due to the ton-mile effect, which measures logistics demand by taking into account not only the volume of cargo but also the transport distance, and this has been driving the rise in indices. The tanker market has also turned around thanks to the boom in VLCCs and changes in product export routes," and added, "Liquefied natural gas (LNG) carriers are also expected to see profit growth this year after stabilization efforts."

The analyst explained, "With the recent removal of the shadow fleet in the VLCC market and the normalization of the Venezuelan crude oil market, demand for VLCCs is increasing, and investments such as SK Shipping's acquisition of 10 VLCCs are positive from the perspective of portfolio diversification," adding, "Fourth-quarter sales last year met expectations at 1.4763 trillion won, down 12% year-on-year, while operating profit rose 19% to 130.4 billion won."

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