Friday, July 8, 2011

Hanjin kickstarts recovery

Long-waited new order for South Korea's Hanjin Heavy industries & Construction has been achieved and this is expected to boost once depressed order.

Researcher Park Min, Korea Investment & Securities, forecasted that Hanjin will recover from this second half of the year when newbuilding work officially begins.

He also emphasized that new order will be continued focusing on containership, LNG carrier and specialized ship with its advantage of more room in yard slots.

Choi Won-Kyung, researcher from Kiwoom Securities, prospected that Hanjin's new order will move into high gear after 3rd quarter, saying "It has resumed to win order for containership and other handy ship are also expected to make contracts. More importantly, it is possible that owners who want to have early delivery will look for Hanjin, which has the edge in early delivery with low newbuilding orderbook."

Also, an analyst Seo Jung-duk from Meritz Securities noted that it is likely for Hanjin to achieve this year's KRW 3trn ($2.8bn) goal with the help of containership market boom which is its main area.

Also, he mentioned, "in case of 2nd quarter, loss will continue with the effect of long strike, however, in terms of annual net profit, it is possible to have a small profit. And in 2012, when Youngdo shipyard will have been normalized and affiliated yard in Subic, Philippines, will have increased sales, Hanjin will be able to reach KRW 115bn of net profit.

Published : July 8, 2011

Source: Asiasis

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