Key points from this report:
· On April 10, the U.S. president stated that the country might consider purchasing advanced ships from trusted allies known for their strong shipbuilding capabilities.
· Year-to-date, South Korea (SK) shipbuilders have outperformed KOSPI by ~21%.
· 2024 marked the most active newbuild market since 2007:
o Decarbonization: Fleets replaced with more eco-friendly vessels.
o Increased natural gas demand boosted orders for high-margin LNG/LPG carriers.
· SK shipbuilders turned profitable in 2024:
o Prices for newbuilds increased due to limited shipyard capacity.
· SK dominates the high-end, eco-friendly segment (70%+ market share).
· The U.S. government seeks to revive its shipbuilding industry with SK’s cooperation.
o Tariffs on China-built ships that dock at U.S. ports to increase orders for SK.
· Included are annotated Datagraphs® for all the major SK shipbuilders: HH3.KR, OSM.KR, HUE.KR, SMH.KR, and HMO.KR.
