Korea’s shipbuilding history, Joseon Dynasty, can be entered now

The shipbuilding industry, which had been struggling to secure a new job until the third quarter due to the spread of the novel coronavirus infection (Corona 19), has been winning orders from last month. Thanks to this, the stock price also gained momentum.

However, the outlook for the future share price is mixed. While there are opinions that the weighting of the shipbuilding industry should be increased based on the fact that there are still orders to be ordered, there are concerns that it may be a low-priced order to fill the lack of recent rush orders.

According to the Korea Exchange on the 23rd, Korea Shipbuilding & Marine Engineering closed the transaction at 100,000 won the previous day. Compared to the closing price in October, it was up 39.68%. During the same period, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering rose by 39.41% and 22.24%, respectively.

This is the influence of the recent Joseon Big 3 successively delivering orders.

On that day, Samsung Heavy Industries also announced that it has won orders for four liquefied natural gas (LNG) carriers for a total of 815 billion won from ship owners in Africa. Samsung Heavy Industries received orders for eight LNG carriers only for three days from the 21st. Since last month, Samsung Heavy Industries has won orders for 3 Suez Max (the largest size that can pass through the Suez Canal) class oil tankers, 10 LNG carriers, ship blocks and equipment. 65% filled.

Korea Offshore & Shipbuilding is also rapidly increasing its order backlog by securing about $3 billion worth of new jobs this month alone. Korea Offshore & Shipbuilding, which set a goal of achieving $11 billion in orders this year, has achieved 86% (about $9.5 billion) so far.

Daewoo Shipbuilding & Marine Engineering’s order performance is relatively low this month. On the 3rd, it only won orders for 3 ultra-large oil tankers (VLCC). Daewoo Shipbuilding & Marine Engineering has won $4.2 billion worth of work this year. It is 58% of the order target of $7.2 billion this year, the least among the big three in shipbuilding. However, six container ships from Hapag Lloyd, Germany, and 10 ultra-large oil tankers that promote LNG dual fuel are on standby as projects that may lead to future orders by signing a letter of intent (LOI).

Expectations for additional orders from other shipbuilders as well as Daewoo Shipbuilding & Marine Engineering are high. First of all, it is expected that Korea Shipbuilding & Marine Engineering and Samsung Heavy Industries will separately win orders for LNG carriers to be used for the Mozambique gas field project.

However, despite the year-end orders from the shipbuilding industry, it is difficult to avoid a decline in order performance compared to last year, and there are concerns that low-priced orders may be possible.

Dong-ik Chung, a researcher at KB Securities, said, “Even considering the increase in new orders in the fourth quarter, new orders from major shipbuilders are only 62.5~77.1% of last year’s annual order volume.” It is a proof that a low-cost order has been placed due to insufficient balance.”

On the other hand, there is an analysis that the proportion of the shipbuilding industry should be increased as shipbuilding companies continue to receive orders and ship prices will rise after filling the order backlog. Lee Dong-heon, a researcher at Daishin Securities, said, “(Major shipbuilders) will continue to increase orders in the first half of next year.”

[한경우 매경닷컴 기자 [email protected]]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]