Shipbuilding stocks rallied across the board after Hanwha Ocean won an order worth about 1.55 trillion won ($1.1 billion) for container ships from Taiwan's Yang Ming Marine Transport. The company has secured more than 2 trillion won in orders over two days, reaffirming its order momentum, while a rebound in the KOSPI after the previous session's plunge helped spread buying across large-cap shipbuilders.
Hanwha Ocean (042660) traded at 87,900 won as of 1:46 p.m. on the 3rd, up 7.20% from the previous session, according to the Korea Exchange. Samsung Heavy Industries (010140) rose 9.33% to 21,800 won, the biggest gain among large-cap shipbuilders. HD Hyundai affiliates also advanced, with HD Korea Shipbuilding & Offshore Engineering (009540) up 5.31%, HD Hyundai Heavy Industries (329180) up 4.38% and HD Hyundai (267250) up 2.86%. Shipbuilding equipment and service stocks gained as well, including Hanwha Engine (082740) up 3.81%, HD Hyundai Marine Solution up 3.27%, HD Hyundai Marine Engine (071970) up 2.96% and STX Engine (077970) up 2.59%.
Analysts attributed the day's gains to Hanwha Ocean's large order. The company said it won a contract worth a combined 1.5527 trillion won to build six 13,650-TEU container ships powered by dual-fuel engines running on liquefied natural gas. The vessels will be built at its Geoje shipyard and delivered in phases through the second half of 2029.
The order comes just a year after Yang Ming placed an order for seven 15,880-TEU container ships in September last year. Hanwha Ocean said it is rare for a global shipping line to place consecutive large orders at the same shipyard within such a short period.
The ships will use LNG fuel tanks built with high-manganese steel developed in-house by Hanwha Ocean. The material is cheaper than nickel alloy steel or aluminum while withstanding cryogenic temperatures of minus 163 degrees Celsius. The company is aiming to meet International Maritime Organization environmental rules while keeping costs competitive.
On the 1st, Hanwha Ocean won an order for three very large gas carriers worth 477.8 billion won from an Oceania-based shipowner. That brought its total to more than 2 trillion won in contracts within two days. The container ship market is being reshaped by the replacement of aging vessels and the shift to eco-friendly fleets. The latest order confirms that work continues to flow to large Korean shipbuilders with a track record in building LNG dual-fuel vessels.
