[Click eStock] "Cape, Benefiting from Growing Demand for Eco-Friendly Ship Engines"

Daishin Securities forecasted on the 13th that Cape, a manufacturer of cylinder liners, will become a beneficiary of the expanding demand for eco-friendly engines for ships. Cylinder liners are eco-friendly engine components that serve as a passage enclosing the reciprocating motion of the piston in ship engines. Cape's market share of cylinder liners is known to be around 30%.

Park Jang-wook, a researcher at Daishin Securities, stated in a report on the same day, "As conventional ship diesel engines are replaced by eco-friendly engines such as LNG D/F engines and methanol D/F engines, the demand for cylinder liners, which are engine parts, will increase," adding, "Performance is expected to improve due to increased sales volume and a rise in average selling price (ASP)."

Researcher Park analyzed, "Cape's operating profit on a separate basis has shown an improving trend in operating profit margin for three consecutive years, with 4.9 billion KRW in 2021, 9.7 billion KRW in 2022, and 20.8 billion KRW in 2023, alongside the rise in new ship prices."

He evaluated, "Cape Investment Securities, a subsidiary held by Cape, recorded an operating profit of 20.9 billion KRW last year and has consistently posted operating profits except for 2022 (a loss of 4.8 billion KRW). The project financing (PF) ratio relative to equity capital is only 9.7%, indicating a relatively low real estate risk."