[Featured Stock] 'Honghae Risk' Prolonged... Heung-A Shipping Up 100% This Year

Heung-A Shipping is experiencing a strong surge. It has risen 100% since the beginning of this month. As geopolitical risks surrounding the Red Sea continue for a prolonged period, the stock price has been hitting new 52-week highs day after day.

As of 10:36 AM on the 17th, Heung-A Shipping is trading at 5,060 KRW, up 19.86% (840 KRW) from the previous day. The stock reached a high of 5,300 KRW early in the session and is fluctuating around 5,000 KRW. This is the highest price in the past 52 weeks. Heung-A Shipping, which closed at 2,485 KRW in 2023, has risen 103% this month. Among KOSPI stocks, it ranks second in monthly gains after IHQ (200.14%).

Recently, the United States has conducted airstrikes on the strongholds of the Shiite armed group 'Houthi' in Yemen. This is expected to negatively impact navigation through the Red Sea, a major trade route, and increase logistics costs, creating a favorable environment for shipping stocks. Another shipping company, Korea Marine Transport, is trading at 3,050 KRW, up 27.88% (665 KRW). Korea Marine Transport has also reached a 52-week high.

Heung-A Shipping has been operating in the shipping industry for over 60 years since its founding in 1961. In 1976, it became the first shipping company to be listed on the Korea Stock Exchange. Its main business is maritime transportation services, transporting cargo using ships. In 2022, it recorded sales of 177.9 billion KRW and an operating profit of 29.7 billion KRW. It is expected to have posted sales of 214 billion KRW and operating profit of 35.7 billion KRW in 2023.

The stock price of Heung-A Shipping reached an all-time high of 7,400 KRW on September 27, 2021, and has since traded within a range of 1,000 KRW to 4,000 KRW for the past three years. On the 12th, it surpassed 4,000 KRW for the first time since October 2021.