[Asia Economy Reporter Lim Jeong-su] Ilseung, a subsidiary of Sejin Heavy Industries that recently went public through a SPAC (Special Purpose Acquisition Company) merger, is expected to see a significant improvement in its performance when the shipbuilding supercycle fully kicks in around next year.
Choi Jong-kyung, a small-cap researcher at Heungkuk Securities, forecasted on the 20th that Ilseung will achieve its best-ever performance next year as the recent boom in shipbuilding orders is reflected in its results.
Ilseung is an eco-friendly equipment specialist company in the shipbuilding and offshore sectors, primarily engaged in environmental equipment and shipbuilding/LNG businesses. Its environmental products include manure treatment devices, evaporative tidal devices, fuel oil purifiers, scrubbers, and industrial boilers. In the shipbuilding/LNG sector, it produces regasification equipment, outfitting materials, and also manufactures waste heat recovery boilers.
Notably, Ilseung’s manure treatment devices hold an 80% market share (MS) domestically and over 20% globally. While these devices were mainly supplied to general merchant ships such as container ships, recently, its customer base has diversified to include ferries, cruise ships, offshore plants, and land-based resorts.
In the case of scrubbers, they are installed on the parent company Sejin Heavy Industries’ equipment and supplied as a package to Hyundai Heavy Industries. Sejin Heavy Industries exclusively supplies shipbuilding equipment to the Hyundai Heavy Industries Group. Ilseung also exclusively supplies newly built ships recently constructed.
Ilseung’s sales in the LNG regasification equipment sector are also expected to gradually increase. Ilseung has been expanding its regasification equipment supply from existing power generation vessels to land-based power plants and FSRU (Floating Storage Regasification Unit) vessels, resulting in a recent rise in orders. On the 7th, it signed a contract worth 12 billion KRW to supply land-based LNG regasification equipment.
Researcher Choi said, "It takes about one year for shipbuilding orders to be reflected as performance in financial statements. Although this year’s results may be somewhat sluggish due to the impact of COVID-19 last year, based on order performance, Ilseung is expected to achieve its highest-ever results next year."
Meanwhile, Ilseung entered the KOSDAQ market in May through a merger with Mirae Asset Daewoo SPAC 4.
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