Daol Investment & Securities forecasted on the 27th that Sejin Heavy Industries, a shipbuilding equipment company, will see a significant improvement in its performance in the second half of the year. It is analyzed that sales and profits will increase as equipment deliveries are in full swing from the second half.
Choi Kwang-sik, a researcher at Daol Investment & Securities, said, "Sejin Heavy Industries recorded sluggish performance in the second quarter due to delayed deliveries," adding, "The delivery of tanks, the main equipment, is expected to be in full swing in the second half."
Sejin Heavy Industries recorded sales of 80.8 billion KRW in the second quarter, down 33% compared to the same period last year. On the other hand, the operating profit margin rose by 4.9 percentage points to 9.8% during the same period.
Researcher Choi explained, "With the operating profit margin in the first half at 7.3%, lower than last year's 8.7%, Sejin Heavy Industries continues to maintain its annual target of double-digit operating profit margin," adding, "This indicates guidance that profit margins will also rise along with increased sales in the second half."
He predicted, "Tank deliveries, which were almost nonexistent in the first half, will be in full swing from the second half," and added, "Deck houses for Hanwha Ocean are expected to be delivered as early as November, and the subsidiary Dongban Ship Machinery's piping business boom and the fruits of automation investment will improve consolidated performance."
He continued, "LPG (liquefied natural gas) tank deliveries are expected to expand to 21 units last year, 9 units this year, 19 units in 2025, and 42 units in 2026," noting, "Especially, tank deliveries are concentrated in the second half of this year."
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