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Daehan Shipbuilding Surges 3.41% During Trading... KB Securities: "Revaluation Expected with VLGC and Defense MRO Entry"

Daehan Shipbuilding is joining the upward trend among shipbuilding stocks, showing strength with a 3% gain during trading, driven by expectations of a solid ord

Wooil Shim
Staff Reporter
5 min read
Daehan Shipbuilding Surges 3.41% During Trading... KB Securities: "Revaluation Expected with VLGC and Defense MRO Entry"
CBC News

Daehan Shipbuilding is joining the upward trend among shipbuilding stocks, showing strength with a 3% gain during trading, driven by expectations of a solid ordering environment and the expansion of high-value new businesses.

As of the trading session on the 29th, Daehan Shipbuilding was trading at 51,500 won, up 1,700 won (3.41%) from the previous trading day, approaching the 52,000-won level as strong buying interest flowed in.

Currently, the overall shipbuilding industry is experiencing favorable conditions driven by global demand for eco-friendly vessel replacement and strong newbuilding prices. In particular, continued orders centered on crude oil tankers are heightening expectations for improved earnings at domestic shipbuilders.

Amid these conditions, KB Securities released an analysis report on Daehan Shipbuilding on the 24th, positively evaluating the company's ability to secure stable profitability based on a repeat production system for its main vessel type, Suezmax-class tankers.

KB Securities highlighted earnings growth through production efficiency along with two key growth drivers. First, the company is expanding its business scope by securing design certification for Very Large Gas Carriers (VLGC). Second, it identified the potential entry into the U.S. naval vessel maintenance, repair, and overhaul (MRO) market as a medium- to long-term growth driver. The firm projected that diversifying its portfolio from its existing merchant ship-focused business into the defense and special vessel sectors would further enhance corporate value.

The market believes that if the transition to eco-friendly vessels and the recovery in global shipping conditions continue, Daehan Shipbuilding's order competitiveness and profitability will strengthen further. However, exchange rates, steel plate prices, and the pace of new orders are cited as key variables that could impact future performance.

Experts advised that investors should comprehensively consider not only short-term stock price movements but also new order achievements, progress in the MRO business, and the expansion of high-value-added vessel types.

[This article was written with the assistance of AI. This article does not constitute investment advice, and the final decision and responsibility for investments lie with the investor.]

Wooil Shim
Staff Reporter

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