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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL – Daishin Securities raised its target price for Pan Ocean from ₩5,000 to ₩6,000 on August 1, maintaining a “Buy” rating as the Baltic Dry Index (BDI) remains above 2,100 despite entering a traditionally weak season.
Analyst Yang Ji-hwan cited several drivers behind the unexpectedly strong freight index:
Increased shipping volumes from Australia and Brazil
Rising coal shipments due to higher power demand for cooling
Growth in China’s steel export volumes
“While long-term demand visibility remains uncertain, the fact that BDI levels remain high even in the off-season is noteworthy,” Yang said.
Daishin revised its H2 average BDI forecast from 1,530 to 1,800, reflecting continued market resilience.
Solid Q2 Performance
Thanks to the BDI’s surge, Pan Ocean reported strong second-quarter results:
Revenue: ₩1.29 trillion
Operating profit: ₩123 billion
(roughly in line with market consensus)
Yang noted that Pan Ocean’s LNG division delivered robust profitability supported by fleet expansion and long-term charter contracts. The dry bulk segment also improved profitability despite a smaller operating fleet, driven by favorable market conditions.
With freight rates holding strong, Daishin expects Pan Ocean to maintain earnings momentum into the second half of 2024.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
