[Click eStock] "Pan Ocean, Surprise Q2 Earnings Expected... Q3 to Be Even Better"

Daishin Securities Issues 'Buy' Investment Opinion and Sets Target Price at 5,000 Won... Closing Price on 25th at 3,770 Won

Pan Ocean

[Asia Economy Reporter Kum Boryeong] As Pan Ocean's second-quarter earnings are expected to exceed market expectations, there is an analysis that the third quarter will be even better.

According to Daishin Securities on the 26th, Pan Ocean's second-quarter earnings are estimated at 679.7 billion KRW in sales and 52.6 billion KRW in operating profit. These figures represent increases of 7.5% and 4.1% respectively compared to the previous year.

Yang Jihwan, a researcher at Daishin Securities, analyzed, "Pan Ocean's second-quarter earnings are expected to show a surprise performance exceeding previous estimates by 22.3%, due to aggressive fleet expansion before the dry bulk market sharply declined, reduced operating costs from lower oil prices than those used in contract freight rate calculations, improved profitability in the container division, and the effect of a weaker Korean won." Pan Ocean's dry bulk operating fleet is estimated to have been 145 vessels at the end of Q4 last year, 167 vessels at the end of Q1 this year, and 193 vessels at the end of Q2.

The Baltic Dry Index (BDI), which was about 520 points on the 1st, rose to 1705 points on the 24th. The market recovery effect is expected to be reflected in the third-quarter earnings, so the third-quarter results are expected to be better than those of the second quarter.

Daishin Securities gave Pan Ocean a 'Buy' investment rating and set a target price of 5,000 KRW. The target price was raised from the previous 4,500 KRW. The closing price on the 25th was 3,770 KRW.