Container ship belonging to HMM. (Photo=HMM)

 

[Alpha Biz= Reporter Kim Minyoung] Daishin Securities raised its target price of HMM (011200) to 23,000 won on the 21st, saying it is expected to make a surprise performance in the second quarter due to the recent rise in container fares.

"The target price applied 0.9 times the price-earnings ratio (PBR) to KRW 25,263 in estimated earnings per share (BPS) in 2025," Daishin Securities said in a report. "The second-quarter operating profit is expected to be KRW 789 billion, far exceeding our previous estimate (KRW 622 billion) and market consensus (KRW 553 billion)." Daishin Securities estimates HMM's operating profit for the second quarter is up 394.3% from a year earlier.

"The surprise performance was due to a sharp rise in fares on the U.S. and European routes in the second quarter," Daishin Securities said. "Although there are uncertainties over the outlook for fares after the third quarter, it will continue to raise earnings and raise stock prices in the short term."

In fact, the Shanghai Container Index (SCFI) rose 18.2% QoQ to about 2390p, the Americas West Coast fare rose 19.7% to $4,968 and European fare rose 22.6% to $3,084.

The remaining permanent bonds of HMM reach 172 million shares in 2024 and 144 million shares in 2025. The number of shares issued will be about 1.025 billion shares when converted into stocks.

 

 

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