 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] Seoul, April 24, 2025 — Korea Investment & Securities has maintained its "Buy" rating on Pan Ocean (KRX: 028670) but revised its target price downward from KRW 5,600 to KRW 5,200, citing growing uncertainties in the shipping sector due to recent U.S. tariff hikes. Pan Ocean shares closed at KRW 3,320 on the previous trading day.
“The recent tariff increase by the U.S. has intensified market concerns about the global shipping outlook,” said analyst Ko Woon Choi. “The Baltic Dry Index (BDI) has fallen more than 20% over the past month, driven by worries that the U.S.-China trade tensions will delay China’s economic recovery.”
Choi pointed out that transportation stocks are being broadly classified as potential victims of the new tariffs. “Seasonal weaknesses in freight rates during the spring, typically a low-demand period, are also amplifying investor anxiety beyond reasonable levels,” she added.
Still, there remains upside potential. Choi believes that stimulus measures from China could trigger a sectoral revaluation. “China may ramp up stimulus efforts to offset trade-related losses, and the BDI, which had been falling for five straight weeks, has recently stabilized. Even a seasonal rebound could provide a significant re-rating opportunity for Pan Ocean,” she noted.
Korea Investment estimates Pan Ocean’s Q1 consolidated revenue at KRW 1.2 trillion and operating profit at KRW 104.2 billion, up 22% and 6% year-on-year, respectively—figures in line with market expectations.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
