Rising oil prices, coupled with the strong value of the local currency against the U.S. dollar, are taking a toll on the economy, casting a pall over a number of exporters.
However, Hyundai Heavy Industries Group (HHIG), which consists of Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries, has emerged as a big winner in the latest shipbuilding boom.
HHIG is confident about surpassing its yearly sales target of 20.44 trillion won after posting 15.2 trillion won in sales during the first nine months of the year, up 24 percent from a year earlier.
As of the end of October, HHIG secured $28.8 billion worth of contracts from shipbuilding to plant businesses _ $16.2 billion by Hyundai Heavy Industries, $5.8 billion by Hyundai Mipo Dockyard and $6.8 billion by Hyundai Samho.
Hyundai Heavy Industries’ net profit in the third quarter rose 106 percent from a year ago to 434.7 billion won.
What is impressive is that the affiliates achieved double-digit growth in their operating margins in the quarter _ 13 percent in Hyundai Heavy, 12.9 percent in Hyundai Mipo and 13.1 percent in Hyundai Samho,’’ an HHIG spokesperson said Tuesday.
Industry analysts say worries over excessive supply, the rapid growth of Chinese shipbuilders and soaring oil prices still remain as risk factors impeding the expansionary plans of South Korean shipbuilders, but strong fundamentals in the industry are fueling a brighter outlook for the world’s largest shipbuilding group.
It is a good time to buy shipbuilding stocks, including HHIG group shares, as more orders will push the shipbuilders to perform better in 2008,’’ said Cho Yong-june, an analyst from Shinyoung Securities.
HHIG is moving up the value chain to larger container ships, as larger and complex vessels spawn higher profits and a rise in the group’s stock prices. Shares of Hyundai Heavy Industries have more than tripled this year.
More than half of the orders received by Hyundai Heavy and Hyundai Mipo were container ships, indicating that China Fears’ will not threaten the group’s brisk move,’’ a spokesman said.
Moreover, HHIG is diversifying its business portfolios, shifting from shipbuilding to alternative energy and plant business and from North America and Africa to Middle Eastern countries.
We are increasing investment in solar energy with cash we have earned from shipbuilding and plant businesses,’’ the spokesman said.
However, Hyundai Heavy Industries Group (HHIG), which consists of Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries, has emerged as a big winner in the latest shipbuilding boom.
HHIG is confident about surpassing its yearly sales target of 20.44 trillion won after posting 15.2 trillion won in sales during the first nine months of the year, up 24 percent from a year earlier.
As of the end of October, HHIG secured $28.8 billion worth of contracts from shipbuilding to plant businesses _ $16.2 billion by Hyundai Heavy Industries, $5.8 billion by Hyundai Mipo Dockyard and $6.8 billion by Hyundai Samho.
Hyundai Heavy Industries’ net profit in the third quarter rose 106 percent from a year ago to 434.7 billion won.
What is impressive is that the affiliates achieved double-digit growth in their operating margins in the quarter _ 13 percent in Hyundai Heavy, 12.9 percent in Hyundai Mipo and 13.1 percent in Hyundai Samho,’’ an HHIG spokesperson said Tuesday.
Industry analysts say worries over excessive supply, the rapid growth of Chinese shipbuilders and soaring oil prices still remain as risk factors impeding the expansionary plans of South Korean shipbuilders, but strong fundamentals in the industry are fueling a brighter outlook for the world’s largest shipbuilding group.
It is a good time to buy shipbuilding stocks, including HHIG group shares, as more orders will push the shipbuilders to perform better in 2008,’’ said Cho Yong-june, an analyst from Shinyoung Securities.
HHIG is moving up the value chain to larger container ships, as larger and complex vessels spawn higher profits and a rise in the group’s stock prices. Shares of Hyundai Heavy Industries have more than tripled this year.
More than half of the orders received by Hyundai Heavy and Hyundai Mipo were container ships, indicating that China Fears’ will not threaten the group’s brisk move,’’ a spokesman said.
Moreover, HHIG is diversifying its business portfolios, shifting from shipbuilding to alternative energy and plant business and from North America and Africa to Middle Eastern countries.
We are increasing investment in solar energy with cash we have earned from shipbuilding and plant businesses,’’ the spokesman said.