[Market Focus] Strong Q1 Results and Lee Jaemyung's "Relocation to Busan"... HMM Surges Over 9%

Shares of HMM, which posted strong results in the first quarter of this year, are surging. Investment sentiment is also being boosted by Democratic Party presidential candidate Lee Jaemyung's announcement that he will push for HMM's relocation to Busan.

As of 9:16 a.m. on May 15, HMM was trading at 22,700 won, up 1,900 won (9.13%) from the previous trading day. Earlier in the session, the stock traded as high as 23,000 won, up 10.58%.

In the first quarter, HMM reported revenue of 2.8547 trillion won, up 22.5% from the same period last year, and operating profit of 613.9 billion won, up 50.8%, both exceeding market expectations. The main drivers of these results include increased cargo volume, freight rates that outperformed the market, and favorable foreign exchange effects.

On this day, Mirae Asset Securities raised its target price for HMM to 29,000 won and maintained its "buy" rating, stating, "Reflecting strong performance and solid fundamentals, we are raising our earnings estimates for this year and next year."

Ryu Jehyeon, a research analyst at Mirae Asset Securities, commented, "Despite uncertainties in cargo volume due to tariffs, expectations for a rebound in freight rates are likely to revive. The stock remains undervalued due to its low valuation. The timing of the company's planned buyback, worth up to 2 trillion won, is also approaching."

Meanwhile, candidate Lee Jaemyung said during a campaign in Busan the previous day, "In order to prepare for the opening of the Arctic route, shipping companies need to come in. HMM is said to be the largest shipping company in Korea. I will make sure that HMM relocates to Busan."