Shipbuilding target prices lowered after setback in Canadian submarine bid3]
NH Investment & Securities lowered the target prices of HD Hyundai, Samsung Heavy Industries, and Hanwha Ocean after reflecting the failure to win the Canadian submarine project. It said that macro variables such as rising interest rates were also viewed as negative factors.
![Shipbuilding target prices lowered after setback in Canadian submarine bid3(/blog-images/gen-5f0146c3-21ac-41b5-bea5-48e6e045db36.jpg)
NH Investment & Securities on 7 month 10 day lowered the target prices of HD Hyundai, Samsung Heavy Industries, and Hanwha Ocean after reflecting the failure to win the Canadian submarine project. The size of the target-price cuts was as much as 28%.
The report said that the failure to win the contract increased uncertainty over the companies' expectations for short-term growth. It also pointed out that macroeconomic variables such as rising interest rates are a negative factor for the shipbuilding industry's re-rating.
The brokerage specifically noted that the results of the Canadian project were more negative than expected. It judged that adjustments are needed to the companies' order outlook and earnings estimates.
The 3shipbuilder’s target price adjustment was announced separately from any change in the investment opinion. The reasons for the adjustment also included global ship demand and changes in the interest-rate environment, in addition to the Canadian business.
This notice 7was issued in connection with the situation related to the Canadian submarine project announced earlier this month. The securities firm said it will monitor whether order wins resume in the future and trends in macro variables.
Detailed figures in the investor disclosure and the size of target price changes by company can be found in the securities firm’s report.
Sources: 매일경제 증권
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