Initiate coverage of the shipbuilding sector with Overweight
We initiate coverage of the shipbuilding sector with Overweight. Our investment points are: 1) reviving momentum for
offshore production facilities; 2) the prospect of a gradual recovery in commercial ship new orders; and 3) the likelihood
of the resumption in LNG carrier new orders as early as 2H18.
Samsung Heavy Industries is engaged in shipbuilding and offshore, machinery and steel structure, and engineering and construction. Co.'s shipbuilding division is engaged in building and repairing ships, including oil carriage ships and passenger ships. Co.'s heavy industry division is engaged in the manufacture of diesel engines for vehicles, construction machinery, excavators, diesel lifts, rolling stocks, engines, air compressors, generators, heavy electric equipment and aircraft components.
Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc.
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