[Click eStock] "KSP, Expecting Increase in Ship Engine Parts Orders"

On the 25th, Hana Securities analyzed that KSP is expected to improve its performance due to increased orders from its upstream customer, a ship engine manufacturer, and rising engine prices.

Jung Joohyun, a researcher at Hana Securities, stated, "The order backlog for engine parts from KSP, a key component supplier, increased from 10 billion KRW in 2020 to 59.1 billion KRW last year," adding, "the effects of the expansion of Plant 1 and Plant 3 will begin to fully materialize from the second half of this year."

He continued, "production capacity will be expanded by about twice compared to last year," adding, "it will be possible to secure additional delayed orders from engine manufacturers."

Researcher Jo noted, "A key point to watch this year is customer diversification," predicting, "With the merger and acquisition of ship engine companies Hanwha Engine and STX Heavy Industries, the engine parts supply chain will be reorganized." He also emphasized, "KSP's sales proportion to Hanwha Engine and STX Heavy Industries was relatively low," and added, "we expect an increase in market share due to the reorganization of the customers' supply chains."