[Market Focus] "Daehan Shipbuilding Stands Out as Beneficiary of Rising Ship Prices... Up Over 6%"

"Newbuilding Prices Expected to Reach Record Highs in Q2"
"Recalling the Case of Russia's Nord Stream"

The share price of Daehan Shipbuilding is on the rise, as expectations grow for improved performance amid uncertainties in energy supply and demand.

As of 9:40 a.m. on March 31, Daehan Shipbuilding was trading at 86,500 won, up 5,200 won (6.40%) from the previous trading day.

Yuanta Securities maintained its "Buy" rating and target price of 156,000 won for Daehan Shipbuilding on this day. The company was evaluated as a key beneficiary whose earnings improvement will be confirmed with a time lag, given the increasing uncertainties in energy supply and demand.

Kim Yongmin, a researcher at Yuanta Securities, stated, "With the market conditions for Suezmax crude oil carriers (SCC), we expect a full-fledged increase in newbuilding prices starting in the second quarter. Although freight rates surged following tensions between the United States and Iran, this has not yet been reflected in the newbuilding price index." Considering the usual one-to-three-month lead time for orders, he projected that newbuilding prices will rise further in the second quarter and surpass USD 90 million.

In the past, when Russia suspended Nord Stream supplies, there was also a time lag where freight rates and secondhand ship prices rose first, followed by newbuilding prices. Kim noted, "Unlike project-based LNG carriers, SCCs, which are highly dependent on the spot market, are likely to see newbuilding price increases reflected more quickly."

Daehan Shipbuilding's first-quarter revenue is estimated at 277 billion won, with operating profit expected to reach 71 billion won. Compared to the same period last year, this represents a 10% decrease in revenue and a 2.1% increase in operating profit. Although revenue declined partly due to disruptions in operations in March, the company anticipates that the share of high-priced orders will increase in the second half of the year, boosting its operating margin.

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