Container ship belonging to HMM. (Photo=HMM)

 

[Alpha Biz= Reporter Kim Minyoung] Shinhan Investment Corp. has stated that it will maintain a 'neutral' investment rating for HMM. Although a strong performance is expected for the second and fourth quarters due to peak season effects, it remains uncertain whether this positive momentum will persist thereafter. The target price is set at 16,000 won.

On the 11th, Shinhan Investment Corp. announced that "HMM's revenue for this year is expected to reach 10.26 trillion won, a 22.1% increase from the previous year, with an operating profit of 1.6742 trillion won and an operating profit margin of 19.3%," and "the annual performance estimate for this year has been revised upward."

However, it cautioned that the current level of freight rates could collapse at any time depending on the number of ships delivered and cargo secured by large container shipping companies.

Shinhan Investment Corp. further commented, "Although a better performance in the second and fourth quarters is expected compared to the first and fourth quarters, a shortage of demand relative to supply has been observed since the second and fourth quarters of last year, when there was a high volume of ship deliveries," and "HMM is also facing the delivery of 12 ships with a capacity of 13,000 TEUs this year."

The company added, "The basis for valuing HMM's per-share value is based on the total number of shares after the conversion of all remaining convertible bonds, totaling 10 billion shares," and "while a better performance in the second and fourth quarters is expected due to the peak season effect, appropriately responding to the disappearance of seasonality is within the realm of trading. However, it is too early to discuss a sustained strong freight rate as shipping companies' utilization rates are still low."

 

 

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