[Special Stock] Increase in Chinese Ship Orders... STX Engine Hits Record High

STX Engine hit an intraday record high. This is interpreted as a buying spree for STX Engine, which supplies ship equipment to Chinese shipyards, as orders for ships at Chinese shipyards have increased.

As of 2:07 PM on the 12th, STX Engine is trading at 25,650 KRW, up 2,650 KRW (11.52%) from the previous trading day. On the same day, it rose to 26,500 KRW, setting a 52-week high.

The Chinese shipbuilding industry secured 71% of the ships ordered worldwide last year. According to Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, Hengrui Heavy Industries ranked 4th in order volume last year, and STX Engine supplies ship engines to Hengrui Heavy Industries.

It is also positive news that the government decided to invest 260 billion KRW, a 40% increase from last year, to strengthen the competitiveness of the shipbuilding industry. The government plans to pursue 17 new projects, including ammonia-powered ships, electric propulsion ships, eco-friendly equipment such as wind-assisted propulsion devices, collaborative robot development, and collaboration platform development.

Another factor behind the stock price increase is that the K9 self-propelled howitzer engine developed by STX Engine passed Egypt's durability test. Hanwha Aerospace announced on the 12th that the 1,000-horsepower domestic diesel engine of the K9 self-propelled howitzer successfully completed Egypt's durability test. Accordingly, the 2 trillion KRW K9 self-propelled howitzer package project, signed between Hanwha Aerospace and the Egyptian government in 2022, is expected to proceed in earnest.