[Click e-Stock] Yuanta Doubles Target Price for Daehan Shipbuilding to 156,000 Won

On March 4, Yuanta Securities selected Daehan Shipbuilding as a key beneficiary of the global oil tanker boom and significantly raised its target price to 156,000 won.

Yongmin Kim, a researcher at Yuanta Securities, stated in a report released on this day that, "Daehan Shipbuilding, which secured orders for eight Suezmax oil tankers (SCC) this year, is essentially a pure SCC shipyard and stands as the sole beneficiary."

Accordingly, Kim raised the target price to 156,000 won, double the previous target of 78,000 won. He also noted that, compared to the previous day's closing price of 96,000 won, there is more than 60% upside potential. The investment rating was also raised to 'Buy.' He explained, "SCC newbuilding prices are set to increase, and with the continued rise in operating margins over the mid-to-long term, both earnings forecasts and valuation multiples have been revised upward."

Specifically, Kim pointed out that there are currently no domestic tanker companies that can be considered direct beneficiaries of the global oil tanker boom, highlighting that Daehan Shipbuilding "can benefit from the accelerated CAPEX cycle of shipping companies resulting from sustained high SCC charter rates, which will positively impact upstream industries."

He further stated, "Even if sanctions on shadow fleets related to Russia, Venezuela, and Iran are lifted, it will take more than a year for legitimate fleet integration through the re-enrollment of P&I insurance. Given this, the high charter rate trend for oil tankers is expected to persist throughout the year." Kim also forecasted that newbuilding prices for SCC vessels scheduled for delivery in 2029-2030 would continue to rise. He added, "For the vessels currently under negotiation, the contract price for existing royalty customers will be around USD 88 million, but the contract price for those signed later this year is expected to exceed USD 90 million."

Regarding overhang risk, he viewed it as a potential opportunity for bargain buying in the future. Kim explained, "The main reason for the previous 'Hold' rating was the overhang risk associated with the 25% stake held by the second-largest shareholder, Anda Asset Management. While it will still take at least a year to resolve the overhang through block deals, considering the typical three-month lock-up period after sale, up to three block deals could occur this year, providing opportunities for bargain purchases amid the ongoing improvement in newbuilding prices."

Regarding the suspension of operations at the Internal Plant 1, announced the previous day, Kim commented, "It will take about two weeks to identify the cause and complete safety measures following the suspension of work due to the occurrence of a serious industrial accident." He added, "If necessary, limited negative impact on earnings is expected as operations can be shifted to Plant 2."

This content was produced with the assistance of AI translation services.