South Korea's Hyundai Mipo Dockyard is expected to improve profitability with aggressive sales.
Researcher Kim Hong-Kyun from Dongbu Securities said, "Hyundai Mipo's revenue and operating margin for Q2 dropped 3.5% and 3% point each from the same period 2010. Lower profit is due to rise in thick plate price."
Hyundai Mipo, however, has kept the largest market share in medium-sized ships and successfully entered in high-value special ship market, such as CON-RO ships, cable-laying vessel, etc,
Kim added, "Hyundai Mipo is likely to win orders for offshore support vessels, worth over $100m per ship, in the second half of 2011. OSVs and medium-size boxships would together drive future growth."
Also, he forecast, "Newbuilding orders slowed down to $1.3bn up to now for the yard, however, Hyundai Mipo would surely achieve annual target of $3.3bn by adding up orders in H2."
Researcher Huh Sung-Deok, Hi Investment & Securities, said, "Decrease in net profit would continue during Q3 and Q4, as more low-priced ships start to roll out of the yard. However, Hyundai Mipo would keep over 9% of operating margin on IFRS stand-alone basis, by maximizing cost reduction and operating efficiency."
Huh predicted, "Shifting its strategy, Hyundai Mipo is expected to concentrate on orders for product carriers, RO-RO ships, small and medium-sized containerships segment during H2."
Published : August 18, 2011
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