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Photo = HMM |
[Alpha Biz= Paul Lee] SEOUL, South Korea – October 24, 2025 – Hana Securities cut its target price for HMM from ₩24,000 to ₩21,000, maintaining a ‘Neutral’ investment rating, citing faster-than-expected declines in container freight rates and persistent cost pressures.
Analyst Do-hyun Ahn said, “We expect HMM’s Q3 revenue to fall 29% year-on-year to ₩2.52 trillion, and operating profit to drop 81% to ₩283 billion due to lower freight rates.” The average Shanghai Containerized Freight Index (SCFI) for the quarter fell 52% to 1,481 points, reflecting increased global vessel supply.
Ahn added that the bulk shipping division is likely to post a 37% year-on-year rise in revenue to ₩436 billion on strong market conditions. “Although supply chain disruptions from reciprocal tariffs eased in Q3, cost pressure remains high. Profitability should, however, improve compared with Q2,” he said.
Hana Securities forecasts HMM’s 2024 operating profit at ₩1.26 trillion, falling to ₩600 billion in 2025. Despite the downcycle, HMM’s cash holdings of ₩12 trillion remain at record levels, and the company has recently placed major new shipbuilding orders.
Ahn concluded, “With ongoing fleet portfolio restructuring, HMM’s earnings stability could improve in the medium term.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
