[Click eStock] "HMM, Shareholder Return Expectations... Target Price Up"

Daishin Securities has raised the target price for HMM from 20,000 won to 22,000 won, reflecting expectations of large-scale shareholder returns amid uncertainties in the shipping industry.

Researchers Yang Ji-hwan and Lee Ji-ni of Daishin Securities stated in a report on the 3rd, "The container and bulk shipping market conditions in 2025 are expected to continue facing downward pressure on freight rates due to supply pressures," but added, "Since the company has planned shareholder returns (dividends + share buybacks and cancellations) worth 2.5 trillion won within one year, it has entered a short-term buyable range." Earlier, HMM announced such shareholder return plans through a corporate value enhancement plan on January 22.

Daishin Securities estimates HMM's net profit for 2024 at approximately 3.7 trillion won. The researchers noted, "The dividend for 2024 is estimated to be about 800 billion to 900 billion won, with a dividend per share (DPS) around 1,000 won," adding, "In this case, the scale of share buybacks and cancellations is likely to exceed 1.6 trillion won." They further commented, "January and February are traditionally periods when freight rates for both container and dry bulk shipping decline, so if freight rates and stock prices adjust accordingly, short-term investment opportunities may arise."