MERITZ Securities noted on the 19th that SK oceanplant is expected to benefit from domestic policy and expand its order intake, along with entering the U.S. maintenance, repair, and operations (MRO) market. They maintained a 'buy' investment rating and raised the target price from 19,000 won to 22,000 won. The closing price of SK oceanplant on the previous trading day was 19,700 won.
Mun Kyung-won, a researcher at MERITZ Securities, said, "SK oceanplant has begun bidding for non-combat naval MRO projects this year and plans to secure more than one order," adding, "They aim to apply for the Maintenance Support and Repair Agreement (MSRA) within this year and obtain it by next year, targeting to secure 4 to 5 vessels annually."
He added, "This could lead to additional sales of several hundred billion won," noting, "We are also planning to collaborate with various defense firms, and the recently announced cooperation with Hanwha Ocean is representative."
SK oceanplant is reported to have delivered over 30 vessels to the Navy and Coast Guard since 2017 and to have repaired and modified around 30 vessels annually, including liquefied natural gas (LNG) carriers and container ships.
Additionally, the domestic offshore wind power industry is currently in a phase where it can expect both policy benefits and order momentum simultaneously, according to researcher Mun.
He stated, "The sales progression speed in both the offshore wind power and special vessel institutional sectors is faster than expected," and added, "Offshore wind power sales will begin to rise significantly starting from this year's fourth quarter (October to December) when the sales of massage offshore wind power are recognized."
He also mentioned that the orders for the Korean massage and Taiwan's Wei Lan Hai offshore wind power sectors until the third quarter (July to September) could serve as a catalyst for the stock price increase.