April 19, 2024

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[THE INVESTOR] Hyundai Heavy Industries has been slow in the second quarter but its backlog order amount will increase this year, said Shinhan Investment on July 24, maintaining a “buy” recommendation and raising the target price to 135,000 won (US$118.98) from 130,000 won. 

It has incurred 175.7 billion won operating loss in the second quarter but eliminating the one-off factors, its operating profit is estimated to be 24.3 billion won. It will turn to red this year with 271.4 billion won operating loss while revenue will decline 15.1 percent from last year to 13.2 trillion won, said analyst Hwang Eo-yeon.

As orders will regain for its flagship vessels gas carriers and containers this year, backlog order amount will hike 24.8 percent to US$30.8 billion. The expanding amount will secure its prospective earnings whilst financial stability from preemptive restructuring will also add appeal, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)