Yuanta Securities Korea on the 4th said Daehan Shipbuilding is an indirect beneficiary of the global tanker boom and raised its investment rating to "buy" from "neutral (HOLD)," setting a target price of 156,000 won, up 100% from before. Daehan Shipbuilding's previous closing price was 96,000 won.
Daehan Shipbuilding is considered an indirect beneficiary of the global tanker boom. With rates high for Suezmax tankers (SCC), large crude carriers that can transit the Suez Canal, the company can benefit from shipowners' capital expenditures (CAPEX).
Kim Yong-min, an analyst at Yuanta Securities Korea, said, "The lack of a domestic stock that directly benefits from the global tanker boom highlights the investment appeal of Daehan Shipbuilding," adding, "As a shipyard effectively specialized in SCCs, having booked eight SCCs this year, it is a unique beneficiary."
On the outlook for high tanker rates, Daehan Shipbuilding's earnings are expected to grow through 2030.
Kim explained, "Even if sanctions on the shadow fleet tied to Russia, Venezuela and Iran are lifted, the high-rate trend for tankers will persist throughout the year, considering it will take more than a year to rejoin a lawful fleet by re-enrolling in protection and indemnity (P&I) insurance."
He added, "Accordingly, the ship new building price for SCC delivery slots (ship production space) in 2029–2030 at Daehan Shipbuilding will continue to rise."