Shinhan Asset Management said it will newly list the "SOL Shipbuilding Equipment ETF," which invests 100% in the shipbuilding equipment sector, on the Korea Exchange on the 16th.
The SOL Shipbuilding Equipment ETF is made up of corporations that represent the shipbuilding equipment value chain. The main constituents are ▲ ship engines (Hanwha Engine·HD Hyundai Marine Engine·STX Engine) ▲ AM solutions (HD Hyndai Marine Solution) ▲ cryogenic and insulation materials (Hankuk Carbon·Dongsung Finetec Co.) ▲ LNG/LPG tanks (Sejin Heavy Industries) ▲ ship blocks and port cranes (HYUNDAI HYMS) ▲ fittings, valves, and piping (SungKwang Bend·TAE KWANG CORPORATION).
The shipbuilding industry has entered a structural boom phase with increased orders for LNG carriers, eco-friendly ships, and ultra-large container ships. In a typical shipbuilding cycle, shipbuilder stocks rise first, followed by shipbuilding equipment corporations, a pattern that has repeated. During the 2005–2007 shipbuilding supercycle, equipment corporations such as engines, cryogenic materials, and fittings also saw a steep uptrend after the shipbuilders.
Kim Jeong-hyeon, who oversees ETFs at Shinhan Asset Management, said, "Since last year, expectations for order intake and earnings improvement centered on the three major shipbuilders have already been priced into shares," and added, "Starting this year, as actual ship construction gets underway in earnest, we expect to enter a phase where equipment orders translate into results."
Kim added, "The SOL Shipbuilding Equipment ETF is the only ETF in Korea that focuses 100% on the shipbuilding equipment sector, and it is a product that can efficiently capture the benefits of the second cycle in shipbuilding through core equipment corporations."