Hana Securities noted on the 18th that despite a 2.1 trillion won stock buyback for HMM, a subsequent decline in the stock price is inevitable. However, they also presented the outlook that if an additional shareholder return policy using remaining asset is introduced, there might be potential for a rise in the stock price. The target stock price remains at 24,000 won, and the investment opinion is kept at 'neutral.'
HMM announced on the 14th its plan for a stock buyback and cancellation of up to 81.8 million shares (8% of total issued shares). The public offering buyback price is set at 26,200 won, which is 19% higher than the closing price on that day. The total expected acquisition amount is 2.1422 trillion won. If the number of shares participating in the public buyback exceeds the number of shares intended to be acquired, it will proceed in proportion based on the shares held.
While the stock buyback and cancellation are expected to have a positive impact on HMM's stock price, the future stock price outlook is somewhat bleak. As the container shipping market enters a recession, a decrease in profits is anticipated. Since there are not many factors to drive the stock price up in the short term, the stock price is expected to fluctuate between 23,000 won and 25,000 won before the public buyback cutoff date.
However, the potential for a rise in stock price appears to be significant depending on the intended use of abundant cash assets. After this stock buyback, HMM's remaining cash assets are at the level of 12.4 trillion won.
Ahn Do-hyun, an analyst at Hana Securities, said, "Even considering HMM's long-term investment plan for 2030, liquidity is sufficient," adding, "If further shareholder return policies become visible in the future, an upward adjustment of the target stock price could also be possible."