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Container ship belonging to HMM. (Photo=HMM) |
[Alpha Biz= Reporter Kim Minyoung] Daishin Securities on the 25th lowered its target stock price to 17,000 won, down 19 percent from the previous year, saying fares will fall as supply pressure deepens toward the second half of the year. Investment opinions also maintained 'Market Platform' (Marketperform, Market Return).
Daishin Securities explained that the reason for the drop in its target stock price was that it lowered its earnings estimate as its first-quarter earnings were estimated to be below initial expectations.
Daishin Securities expects its operating profit to reach KRW 569.1 billion in the first quarter of this year, below market estimates. This is an increase of 85.4% compared to the same period last year.
"The Shanghai Container Fare Index (SCFI) hit 2,021 points in the first quarter of this year. The HMM does not appear to have fully benefited from the rise in spot fares as about 20 to 25 percent of European supplies and 50 to 55 percent of the Americas are subject to contract fares," Daishin Securities said.
Daishin Securities said, "In the second half of the year, freight rates are expected to stabilize downward as supply pressure intensifies."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
