Meritz Securities announced on June 22 that it has raised its target price for HD Hyundai Marine Solutions to 300,000 won, reflecting the growth potential of the company's eco-friendly solutions business. The firm assessed that the remodeling of floating data centers (FDC) and the potential entry into the engine maintenance, repair, and overhaul (MRO) market would drive long-term performance.
Analyst Bae Gi-yeon projected that HD Hyundai Marine Solutions' revenue from eco-friendly solutions will reach 893.4 billion won by 2028, marking a 418.5% increase compared to 2025. Previously, the forecast included revenue growth from floating storage regasification units (FSRU) starting in 2027, but it has now been adjusted to reflect expected FDC remodeling revenue beginning in 2028.
Bae noted that the shorter lead time from order to delivery for remodeling projects compared to new ship construction suggests that if HD Hyundai Group secures FDC contracts, the capabilities of HD Hyundai Marine Solutions in remodeling will likely be utilized.
Furthermore, Bae anticipates that if HD Hyundai Heavy Industries supplies engines for data centers, HD Hyundai Marine Solutions will see MRO revenue from these engines emerge within one to two years. He stated, "While significant related revenue is expected to begin in 2029 and is not reflected in the target price calculation, the expansion of engine orders by HD Hyundai Heavy Industries could serve as a momentum for HD Hyundai Marine Solutions' stock and a factor for valuation reassessment."
* This article has been translated by AI.
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