Hana Securities said on the 24th that it lowered its earnings estimates for HMM as container freight rates fell faster than expected while the trend of rising expense remained. It maintained a neutral investment opinion but cut its target price to 21,000 won from 24,000 won.
Ahn Do-hyeon, a researcher at Hana Securities, said, "This year's operating profit is expected to be 1.262 trillion won and next year's 600 billion won," but noted, "HMM's cash and cash equivalents stand at 12 trillion won, indicating a time of plenty, and depending on how the company uses its cash holdings, there is room for its corporate value to be reassessed."
Hana Securities forecast HMM's third-quarter revenue at 2.522 trillion won, down 29% from a year earlier, and operating profit at 283 billion won, down 81% over the same period. Researcher Ahn analyzed, "As supply chain disruptions caused by reciprocal tariff eased, profitability improved compared with the second quarter."
Ahn said the imposition of port entry fees at U.S. ports on Chinese-owned and -operated vessels that began on the 14th could be an opportunity. "In a phase where carriers' profitability is weakening, hefty entry fees are a significant burden," Ahn said, adding, "If additional expenses related to entry fees are levied going forward, it could be a positive factor for HMM, which has a relatively low share of Chinese vessels."