The Japanese animation studio 'Ghibli,' known for creating 'My Neighbor Totoro' and 'Spirited Away,' has taken over KakaoTalk profiles with images inspired by its art style. Ordering from OpenAI's ChatGPT can generate images in just one minute, sparking a global sensation and fueling the wave of artificial intelligence (AI). OpenAI CEO Sam Altman noted, 'The graphic processing units (GPUs) are melting down,' indicating concerns over server overload.
However, there are analyses suggesting that the Ghibli craze unexpectedly could provide upward momentum for shipbuilding stocks. As the number of ChatGPT users increases, electricity demand skyrockets. An increase in electricity demand is expected to significantly boost U.S. liquefied natural gas (LNG) demand as well. U.S. President Donald Trump is focusing on expanding LNG production and exports to enhance energy security alongside economic stimulus. This is done by pressuring allies like Japan and India to import U.S.-sourced LNG.
As LNG demand rises worldwide, orders for natural LNG vessels will increase, which will lead to an expansion of domestic shipbuilders' workloads. A researcher from DAISHIN SECURITIES stated, 'Korean shipbuilders, which have unique competitiveness in the high-value LNG vessel sector, are likely to benefit the most.' DAISHIN SECURITIES has suggested that, with the second Trump administration, our shipbuilding industry will face structural changes, presenting an 'increased weighting' investment opinion on the shipbuilding sector.
Currently, the U.S. is utilizing its ally, South Korea, to pressure the Chinese shipbuilding industry. This implies that significant workloads for South Korean shipbuilders are expected in the future. The U.S. plans to impose millions of dollars in fees on Chinese vessels and shipping companies operating in U.S. ports. U.S. sanctions on Chinese vessels are already showing effects. U.S. energy corporation ExxonMobil canceled orders for two liquefied natural gas bunkering vessels (LNGBVs) intended for China.
As of 2023, China accounted for 51% of the global ship delivery volume, followed by South Korea (28.3%) and Japan (15.4%). If construction is not entrusted to China, the realistic alternatives are South Korea and Japan.
Yang Hyung-mo, a researcher at DS Investment Securities, noted, 'Even if just 10-30% of orders from China are rerouted to South Korea, a massive backlog increase can be expected.' Last year, China’s new orders approached 2,000 vessels, while South Korea secured over 250 orders. Yang stated, 'Demand recovery, traditionally centered on merchant vessels, is being driven by new structural momentum, which is expected to support the long-term upward potential of stock prices.'
Thanks to this, shipbuilding stocks like HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries have surged significantly this year. Huge investment funds have also flowed into HD Hyundai Marine Engine and HD Hyundai Marine Solution, which produce ship engines.
However, it should be noted that shipbuilding stock prices have risen significantly over the past three months, and some negative indicators regarding the shipbuilding industry's conditions have been confirmed. A researcher from iM Securities, Byeon Yong-jin, stated, 'The U.S. administration's sanctions on the Chinese shipbuilding industry have increased uncertainty in the global shipbuilding sector, and a trend of decreased overall ship orders has been detected,' adding, 'It is also concerning that the ship price index has been declining for nearly six months.'