Pan Ocean Posts Strong Q2 Performance Unaffected by COVID-19 Pandemic

[Asia Economy Reporter Park Ji-hwan] Samsung Securities maintained a 'Buy' investment rating on Pan Ocean on the 17th, stating that despite the impact of the COVID-19 pandemic this year, the company achieved strong performance. The target price was raised by 9.76% from the previous 4,100 KRW to 4,500 KRW.

Kim Young-ho, a researcher at Samsung Securities, evaluated, "Pan Ocean's second-quarter sales recorded 683.4 billion KRW, an 8.1% increase compared to the previous year," and added, "Operating profit also achieved an earnings surprise by recording 64.3 billion KRW, a 27.3% increase, significantly exceeding market expectations."

This year’s operating profit estimates were also revised upward by 8.2%.

He stated, "Since the beginning of the year, the fleet expansion has continued, so performance improvement is expected in the second half," and predicted, "The delivery of four vessels under long-term cargo transport contracts is scheduled in the second half, which will enhance profit visibility."

Researcher Kim analyzed, "Although concerns about a decrease in cargo volume due to COVID-19 remain, the resumption of scrapping after the pandemic eases and expectations for raw material demand recovery due to economic stimulus measures in various countries are also valid."