Hyundai Heavy Industries will benefit from increasing demand for LNG carriers, said NH Investment and Securities on March 7, raising the target price to 170,000 won (US$159.04) from 140,000 won.
As China, the second largest importer in the world, relies more on cargo, the boom of short-term transportation market will be maintained until 2020, forecast analyst Yoo Jae-hun, adjusting the estimated order for LNG carriers to 50 vessels from 40.
Since the market is in the initial phase of expansion, HHI will lead the competition with its stable financial structure and technology, and on the back of rising demand its order backlogs will be close to two year’s capacity by the end of April, according to the analyst.
The expanding orders of the world’s top shipbuilder will result in a rise in prices in the global market, and in the short term, HHI’s orders will increase sharply but due to manufacturing capacity limitations, two other Korean shipbuilders will also benefit, added Yoo.
By Hwang You-mee (firstname.lastname@example.org