Korea Investment & Securities noted that concerns about the shipping market have increased due to the impact of the tariff increase in the United States on Pan Ocean. It maintained a 'buy' investment opinion and adjusted the target stock price from 5,600 won to 5,200 won. The previous day's closing price for Pan Ocean was 3,320 won.
Choi Woo, a researcher at Korea Investment & Securities, said, "The uncertainty regarding the shipping market has increased due to the tariff increase in the United States," and explained, "Concerns that China's economic recovery will be delayed due to U.S.-China conflicts have caused the bulk carrier freight index (BDI) to drop more than 20% over the past month."
He further analyzed, "The transportation sector is being evaluated as a victim of the tariff increase due to its external image," and added, "The general seasonal off-peak until spring, which leads to sluggish cargo rates, is also a factor that excessively heightens concerns."
However, there still appears to be room for reassessment through China's economic stimulus measures, according to Choi. He stated, "China could expand its economic stimulus measures to recover from the damages of the trade disputes," adding, "The BDI, which had dropped for five consecutive weeks, has seen its decline halted since last week. Even a seasonal rebound would present a significant opportunity for reassessment for Pan Ocean."
Korea Investment & Securities estimates that Pan Ocean will post consolidated sales of 1.2 trillion won and an operating profit of 104.2 billion won in the first quarter of this year. These figures represent increases of 22% and 6%, respectively, compared to the same period last year and are expected to align with market outlooks.