[Featured Stock] Ilseung, LNG Battle Erupts as Russia Shuts Off Gas... Surge in Inquiries About LNG Regasification Facilities

[Asia Economy Reporter Hyungsoo Park] Ilseung is showing strong performance. The expectation of benefits from the increase in LNG ship orders by domestic shipbuilders appears to be influencing the stock price.

As of 3 PM on the 23rd, Ilseung is trading at 5,200 KRW, up 19.68% from the previous day.

According to Clarkson Research, a UK-based shipbuilding and shipping market specialist, global ship orders in July reached 2.1 million CGT (70 vessels). South Korea maintained its top position with 1.16 million CGT (19 vessels, 55%).

Researcher Dan FS from FS Research explained, "The biggest contributor to Korea's number one ranking in orders was undoubtedly LNG carriers," adding, "Ilseung focuses primarily on the shipbuilding LNG division, including LNG regasification facilities and outfitting materials."

He continued, "In fact, Ilseung's demand for LNG regasification facilities is steadily increasing," emphasizing, "They are participating in bids for newly launched global projects."

Furthermore, he noted, "The environmental maintenance business's waste treatment equipment has recently achieved a domestic market share of 91% and a global market share of 26% over the past three years, demonstrating competitiveness," and analyzed, "Since the IMO (International Maritime Organization) has set targets to reduce ship carbon emissions by 40% by 2030 and 50% by 2050 compared to 2008 levels, demand for environmental equipment will continue."

This year's expected performance, based on guidance, projects sales of 70 billion KRW, an increase of 66.8% compared to last year. It is estimated that in 2024, sales will reach 200 billion KRW and operating profit 30 billion KRW. If the volume of LNG regasification facilities increases, it is expected to record up to 100 billion KRW in performance from this alone.

Following Russia's suspension of gas supply to Europe via the Nord Stream 1 pipeline, natural gas prices in Europe surged by 20%, showing a sharp rise. Europe is expected to accelerate the adoption of renewable energy to reduce dependence on Russia.

Due to issues related to global gas supply and demand, related stocks such as liquefied petroleum gas (LPG), steel pipes, city gas, shipbuilding equipment, and liquefied natural gas (LNG) are attracting attention.

FS Research expects that Ilseung will soon secure multiple orders amid ongoing inquiries about LNG regasification facilities from Europe and various companies.