[Market Focus] Daehan Shipbuilding Achieves Highest Profitability Among Global Shipbuilders... Tanker Freight Rates Surge 2.6 Times in 5 Months

On November 12, Daehan Shipbuilding, which had recorded its lowest price since listing the previous day, is rebounding. It appears that recent securities firm analyses suggesting the stock's decline has been excessive are influencing the share price. IBK Investment & Securities has maintained its target price for Daehan Shipbuilding at 100,000 won. The firm strongly recommended a "strong buy," positioning Daehan Shipbuilding as a means to capitalize on the explosive tanker market.

As of 10:16 a.m. on November 12, shares of Daehan Shipbuilding are trading at 63,000 won, up 9.19% from the previous day.

Jihoon Oh, a researcher at IBK Investment & Securities, analyzed, "The recent excessive share price decline is largely due to concerns over the lock-up expiration on February 1, 2026, for Anda H Asset's 24.89% stake."

He continued, "It is unlikely that Anda H Asset will immediately sell all its shares on February 1 next year. Through a recap in October this year, Anda H Asset fully recovered its original investment and has completed principal repayment to existing investors."

He added, "The maturity of the pledge agreement on Daehan Shipbuilding shares has been extended from July 21, 2026, to October 1, 2027, giving Anda H Asset ample time before any stake sale."

Furthermore, he emphasized, "As the second-largest shareholder of Daehan Shipbuilding, Anda H Asset is more likely to sell its stake through a block deal rather than on the open market. Contrary to market concerns, the likelihood of a large-scale stake sale and the resulting overhang risk materializing in the near term is low."

Researcher Oh also stated, "Among global shipbuilders, Daehan Shipbuilding boasts the highest profitability but is valued at the lowest. The tanker segment, its main business, is performing exceptionally well, and we expect strong orders next year."

He explained, "Daehan Shipbuilding has secured an order for two Suezmax tankers from Nordic American Tankers (NAT) and has recently signed a preliminary contract with a European shipping company for two Suezmax tankers at approximately 86 million dollars each."

He added, "The formal contract is likely to be signed early next year. While it may be difficult to buy a large shipbuilder solely for its tanker business, Daehan Shipbuilding could be an attractive option given the explosive tanker market."

He also noted, "Current offshore crude oil inventories have reached their highest level in the past decade. As structural demand for tankers increases, tanker freight rates have risen about 2.6 times since June and are continuing to climb." He further stated, "Daehan Shipbuilding specializes in Suezmax tankers and, through process internalization, currently achieves the highest profitability among global shipbuilders. With large-scale tanker orders expected next year, we anticipate Daehan Shipbuilding will be a major beneficiary."