KB Securities announced on June 19 that it expects HD Hyundai Heavy Industries to enter a phase of significant earnings growth, raising its target price from 800,000 won to 900,000 won while maintaining a "buy" rating.
In a report released that day, analyst Jeong Dong-ik stated, "HD Hyundai Heavy Industries recently disclosed that it has signed a contract to supply engine generators worth 627.1 billion won to the United States."
Jeong noted, "The contract is reportedly for use in power supply for data centers, and there has been a significant increase in similar inquiries, raising expectations for additional contracts in the future."
He added, "The expansion of business opportunities based on the profitable 'powerful engine' is expected to play a positive role in both long-term earnings and valuation."
Furthermore, he mentioned, "Although market expectations have risen significantly due to the earnings surprise in the first quarter, we anticipate solid results that will meet these expectations. Factors such as the continued rise in dry bulk carrier prices, improvements in product mix, enhanced productivity from the introduction of Palantir solutions, and rising exchange rates are expected to contribute to strong second-quarter results."
Additionally, he reported, "New orders in the shipbuilding and marine sectors exceeded $10 billion in the first half of this year. By April, the company had secured $9.26 billion in orders for nine LNG carriers, nine LPG carriers, 22 container ships, and 25 PC ships. With additional orders announced since May, the total is estimated to surpass $10.5 billion."
He concluded, "Considering the annual new order target for this sector is set at $17.75 billion, the current achievement rate stands at a healthy 59.2%."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.