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[Alpha Biz=(Chicago) Reporter Kim Jisun] Hana Securities predicted on the 13th that the collapse of its parent company Harim Group's acquisition of HMM will have a positive effect on Pan Ocean.
However, the company maintained its investment opinion "buy" and target stock price of 6,800 won, evaluating that its fourth-quarter earnings fell short of expectations due to its disappointing operating strategy despite rising fares.
"Fan Ocean's stock price volatility has increased over the past two months due to growing concerns over a massive capital increase in Pan Ocean as its parent company Harim Group was selected as the preferred bidder to acquire HMM through a consortium," Hana Securities said.
"With the final breakdown of the acquisition negotiations last week, the stock price has recovered to its original level as concerns over capital increase have been resolved," Hana Securities said. "The future direction of stock prices is expected to be determined by business performance based on business conditions, and we expect a favorable business environment due to the recovery of China's steel demand and the acceleration of abandoned ships in the second half of the year."
Hana Securities continued to maintain its investment opinion "buy" and target stock price of KRW 6,800, saying, "The current stock price is 0.5 times the price-to-book ratio (PBR) and the valuation burden is limited to the bottom of the band."
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
