[EQUITIES] ‘Hyundai Heavy to continue recovery’

[THE INVESTOR] Hyundai Heavy Industries will stay on the steady track of recovery as orders on hand decline and delivery of vessels rises, according to Hana Financial Investment on Oct. 10.

The securities firm maintained a “buy” recommendation and raised the target price to 200,000 won (US$179.99) from 166,000 won.

HHI will post 11.4 trillion won in sales and 260 billion won in operating profit in the third quarter, forecast Park Mu-hyeon, an analyst at Hana, adding that its performance will improve across the business sectors except for onshore plants.

The price index for building new container and bulk ships have slightly rebounded for the first time in 30 months, major ship owners will begin ordering again, said Park, and as the Chinese shipbuilding industry has collapsed, the orders will concentrate in South Korean shipbuilders.

By Hwang You-mee (glamazon@heraldcorp.com)