Nomura: Korean Shipbuilding Stock Valuations May Decline in Second Half

MaticHoleFiller · 2026-03-24T02:58:09+00:00

Nomura analyst Eon Hwang stated that South Korean shipbuilding stocks' high valuations will correct in the second half of the year, primarily due to declining newship prices and easing Middle East tensions. HD Hyundai Heavy Industries' rating was downgraded to "reduce," with a target price lowered to 350,000 won. Related stock prices have also declined.

MaticHoleFiller

2026-03-24 02:58:09

Abstract generation in progress

Nomura’s Eon Hwang stated that the overvaluation of South Korean shipbuilding stocks may correct in the second half of the year. In a report, the analyst wrote that, with shipping disruptions in the Suez Canal and the Strait of Hormuz, expectations of winning more defense contracts and rising freight rates might support valuations in the first half of this year. However, falling new ship prices and easing tensions in the Middle East have led Nomura to adopt a cautious outlook for the second half. Nomura downgraded HD Hyundai Heavy Industries from “Neutral” to “Reduce” and significantly lowered the target price by 33% to 350,000 KRW. Its indirectly controlled company, HD Korea Shipbuilding & Offshore Engineering, also downgraded from “Buy” to “Neutral,” with the target price cut by 33% to 410,000 KRW. HD Hyundai Heavy Industries’ stock fell 0.7% to 563,000 KRW; HD Korea Shipbuilding & Offshore Engineering’s stock declined 1.6% to 407,000 KRW.

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