[Click eStock] "HD Hyundai Marine Engine, Secures More Than Two Years of Backlog Amid Surging Orders"

DS Investment & Securities forecasted on the 26th that HD Hyundai Marine Engine (formerly STX Heavy Industries) will see its performance grow significantly due to an increase in operating rates, as it holds more than two years' worth of orders. They set a target price of 25,000 KRW, which is 18% higher than the current stock price, and issued a new 'Buy' recommendation.

The world’s first methanol-powered ultra-large container ship 'Ane Maersk,' built by HD Hyundai Heavy Industries.

HD Hyundai Marine Engine primarily produces ship engines such as diesel engines, LNG gas engines (dual fuel), and LPG gas engines (dual fuel). They also manufacture ship engine parts like 2-ST crankshafts and turbochargers. The crankshaft is a key component that operates the ship engine by utilizing thermal energy generated in the engine combustion chamber. The turbocharger uses the power of a turbine driven by engine exhaust gas to push the mixed gas into the engine cylinders, increasing engine output and torque. The sales composition is approximately 78% ship engines and 22% engine parts.

Yang Hyung-mo, a researcher at DS Investment & Securities, stated, "HD Hyundai Marine Engine announced five orders since September," analyzing that "the total volume exceeds 240 billion KRW, including 27.2 billion KRW from K Shipbuilding, 21.1 billion KRW from Xiamen, China, 112.1 billion KRW from Jiangsu New Yangzi, 28.7 billion KRW from Nantong CIMC, and 84.7 billion KRW from Xiamen."

Researcher Yang added, "Currently, the operating rate of ship engines is below 60%, so increasing the operating rate through additional orders will boost sales," and predicted, "If ship orders increase next year, orders will rise significantly." He also noted, "As of the end of the third quarter, the order backlog stands at 664.6 billion KRW, already securing more than two years' worth of work."