DS Investment Securities maintained a buy recommendation on Daehan Shipbuilding (KOSPI: 439260) on the 29th while lowering its target price from the previous level to 90,000 won — sorry, to 95,000 won — implying upside of 90.8% from the current share price of 49,800 won.
DS Investment Securities maintained a buy recommendation on Daehan Shipbuilding (KOSPI: 439260) whilst trimming its target price to 95,000 won, implying upside of 90.8% against the current share price of 49,800 won.
The broker highlighted two near-term catalysts. First, Daehan has reduced its dry-dock cycle time from 4.5 weeks to 4.0 weeks, which is expected to lift annual vessel deliveries by one unit from 2028 onwards. Second, on 4th June the company received basic design approval for an 88,000-cubic-metre Very Large Gas Carrier (VLGC) from both British and Korean classification societies. VLGCs of this size command prices roughly 20–30% higher than Suezmax tankers, the vessel type that currently makes up the entirety of Daehan's order book. DS Investment Securities argued that expanding into VLGCs could serve as a valuation re-rating trigger.
Order momentum in 2026 has also been encouraging. Daehan has secured 15 vessels so far this year — all Suezmax tankers — with the most recent contract struck at $94m per ship, a record high for the company.
For 2026, DS Investment Securities forecasts revenue of 1.306 trillion won and operating profit of 368bn won, implying an operating margin of 28.2%. The stock trades at a 12-month forward price-to-earnings ratio of 6.1 times, roughly 70% of the multiple commanded by South Korea's larger shipbuilders such as HD Hyundai Heavy Industries and Samsung Heavy Industries.
The target-price reduction reflects a modest softening in projected 2027 earnings and a sector-wide compression in valuation multiples. Even so, the broker struck an optimistic tone: "Should profitability growth in the second half and VLGC order momentum become visible, there is ample room for a rerating," it said.