[Featured Stock] HD Hanguk Joseon Haeyang Hits 52-Week High... Order Volume, Ship Prices, and Trump 'Triple Factors' Highlighted

Achieving Weekly Shipbuilding Targets Already in July
Shipbuilding Industry Benefits from 'Supercycle'
Expecting Korean Shipbuilding to Gain from Trump Election Windfall

HD Hyundai Heavy Industries recorded a 52-week high. This is interpreted as a combined effect of a clear improvement in profitability, having already achieved this year's order target, a boom in the shipbuilding industry, and the reflexive benefits from the Trump factor.

As of 9:34 a.m. on the 22nd, HD Hyundai Heavy Industries is trading at 185,800 KRW, up 6.72% (11,700 KRW) from the previous close. The stock reached an intraday high of 186,600 KRW. This surpasses the previous 52-week high of 184,000 KRW recorded on the 17th.

Kang Kyung-tae, a researcher at Korea Investment & Securities, said, "As we enter the latter half of July, HD Hyundai Heavy Industries has already exceeded its 2024 order target," adding, "When comparing the cumulative performance of July over the past three years, the results are as good as those in 2022, showing no significant difference." The consolidated sales for the second quarter are expected to increase by 11.5% year-on-year to 6.0784 trillion KRW, and operating profit is projected to rise by 258.1% to 255.2 billion KRW. The target price was also raised by 30%, from 200,000 KRW to 260,000 KRW.

The shipbuilding industry, which had been frozen for about 10 years, is now being described as entering a "super cycle" this year. This is due to the order boom, soaring container freight rates, and the increased likelihood of Donald Trump, the Republican presidential candidate, winning the U.S. presidency. According to Clarkson, a British shipbuilding and shipping market analysis firm, the Clarkson Newbuilding Price Index stood at 187.23 points as of last month, close to the peak of 191.6 points in September 2008, which was the largest boom period since the 2000s. The Newbuilding Price Index is based on the global shipbuilding prices in 1998, indexed at 100, so 187 points means prices are 87% higher compared to that time.

Moreover, if Trump is elected U.S. president, it is expected that he will take measures to curb the Chinese shipbuilding industry, allowing the Korean shipbuilding industry to gain reflexive benefits. Han Seung-han, a researcher at SK Securities, said, "If Trump is elected, the expansion of LNG exports will likely increase the chances of final investment decisions for global LNG liquefaction terminal projects with a high North American share," adding, "These projects are very likely to be ordered by the three major Korean shipbuilders rather than China."