SK Securities raises the target stock price of Korea Carbon to 58,000 KRW... Shipbuilding equipment industry shows improved performance

SK Securities has raised the target stock price for Korea Carbon from 44,000 KRW to 58,000 KRW this year, expecting its performance to be outstanding. This is due to Korea Carbon’s strong performance in shipbuilding materials and the continued positive momentum in order intake expected this year.

Korea Carbon’s operating profit in Q4 last year was 38.3 billion KRW, a 120% increase compared to the same period last year. This exceeded market expectations of 33.9 billion KRW by about 13%. The growth was driven by favorable exchange rates, increased supply of secondary shielding materials to China, and narrower losses from consolidated subsidiaries. SK Securities analyst Han Seung-han stated that these growth factors are expected to continue, especially with an anticipated rise in average sales prices. Additionally, analysts believe that with ongoing large-scale orders for liquefied natural gas carriers, Korea Carbon’s performance is likely to improve further.

In light of this, SK Securities has revised its operating profit forecasts for Q1 and Q2 this year to 40.9 billion KRW and 42 billion KRW, respectively. Meanwhile, the full-year operating profit is expected to increase from 155.2 billion KRW to 171.7 billion KRW, an approximately 11% rise.

On the other hand, with increasing calls in the U.S. to approve the Ship Act, Korea Carbon’s potential entry into the U.S. market is also rising. This could serve as a factor to boost Korea Carbon’s long-term growth and profitability, with the market paying attention to the potential opportunities to enhance corporate value.

If this trend continues, Korea Carbon will be able to maintain high performance in the shipbuilding materials industry and is expected to expand its position in the global market.