[Featured Stock] 'LNG Boom' Taekwang Hits New High on Earnings Improvement Outlook

Taekwang is showing strong performance in the early trading session. This appears to have boosted investor sentiment following securities analysts' forecasts of future earnings growth driven by positive developments in the LNG (liquefied natural gas) industry.

As of 9:14 AM on the 27th, Taekwang was trading at 25,200 KRW, up 10.28% (2,350 KRW) from the previous close, hitting a 52-week high.

The strong stock price is interpreted to be based on securities analysts' projections of Taekwang's sales growth. Kyeongjae Wi, a researcher at Hana Securities, explained, "The primary factor driving growth in the domestic shipbuilding value chain remains LNG," adding, "With LNG terminals expected to increase significantly between 2028 and 2030, Taekwang is also expanding its LNG business, and overall corporate earnings growth is expected to continue." Currently, Taekwang's order backlog is estimated at approximately 154 billion KRW (with an estimated LNG proportion of about 60%). Considering the lag time of about 5 to 6 months for order backlogs to be reflected in earnings, Wi predicts that the first half of 2025 earnings could improve compared to the past.

In the fourth quarter of last year, Taekwang reported consolidated sales of 66.2 billion KRW, down 7.3% year-on-year, and operating profit of 9.7 billion KRW, up 28.8%, falling short of market expectations. Researcher Wi noted, "The subsidiary's quarterly performance did not meet expectations, and one-time costs related to year-end bonuses appear to have impacted the consolidated results," adding, "This year, with new orders expected to reach around 300 billion KRW, annual sales on a separate basis are anticipated to reach the high 200 billion KRW range."