[THE INVESTOR] Hyundai Heavy Industries’ stock price continues to rise on the back of rosy earnings outlook and ongoing restructuring efforts, industry sources said on Oct. 11.

Stocks of HHI were trading at 154,000 won (US$138) on the Seoul bourse as of 9:30 a.m., up 1.65 percent from the previous session’s close, and also marking a 52-week high.

The shipyard started at 85,500 won on Jan. 4 but has almost doubled so far this year.

“Next year, demand for new ships is expected to rise and an industry-wide recovery is likely to improve its corporate value,” said Yoo Jae-hoon, an analyst at NH Investment & Securities. The analyst raised the 12-month target price to 180,000 won from 150,000 won.

Yoo said the shipbuilder’s third-quarter operating income is estimated at 164 billion won, shy of market estimate, but its fourth-quarter earnings may improve.

Other analysts also raised their target prices for HHI citing better than expected earnings and an expected recovery in the global shipbuilding sector.



“In a short haul, demand for LNG carriers and oil tankers may rise, and next year, demand for new ships will continue,” said Jeon Jae-chun, an analyst at Daishin Securities.

Early this month, HHI bagged a deal to build two oil tankers, whose terms of the deal were not disclosed.

(theinvestor@heraldcorp.com)