KB Securities said new orders have continued for Daehan Shipbuilding since the start of the year, maintained its "Buy" rating, and raised the target price to 110,000 won from 85,000 won. As of the prior trading day, Daehan Shipbuilding's closing price was 90,300 won.
Jung Dong-ik, a KB Securities analyst, said, "This year, the company has won orders for a total of eight Suezmax tankers, pushing orders through the 23rd of this month above 1 trillion won," and noted, "Given annual production capacity of 10 to 11 vessels, it has already secured about 70% to 80% of a year's workload."
Jung said that while Daehan Shipbuilding's debt ratio reached 374% at the end of 2023, it fell to 41.3% by the end of last year thanks to improved earnings and proceeds from a paid-in capital increase raised during the listing on the Korea Exchange's main board.
He said, "It has escaped concerns over a weak financial structure that once stigmatized small and midsize shipbuilders and secured high financial stability, creating room for research and development (R&D) and investments."
Last year Daehan Shipbuilding posted revenue of 1.2281 trillion won and operating profit of 294.1 billion won. Those figures rose 14.2% and 86%, respectively, from a year earlier.