This Is More Urgent Than The Ship… Big Tech's Urgent Request For Data Centers From K-Shipbuilding? / "Engine Stocks" Earnings Will Explode Before Shipbuilding Stocks | Eom Gyeong-a, Research Fellow

Summary

Shinyoung Securities research fellow Eom Gyeong-a discusses why Big Tech is urgently seeking Korean floating data centers, how Korean shipbuilders can supply them using existing dock and offshore technology, and which shipbuilder and engine stocks are likely to benefit. She argues HD Hyundai has the long-term integrated power advantage while Samsung Heavy Industries has a near-term first-mover edge, and that Korean big-three shipbuilders are attractive after their correction. She also sees engine makers as faster earnings growers.

• Big Tech is looking to floating data centers because US onshore data center construction faces cancellations and local opposition.
• Korean shipbuilders can build ship-shaped floating data centers using existing docks, hull-side technology, and offshore plant experience.
• Samsung Heavy Industries is cited as a near-term first mover with a concrete project targeting first half 2028 operation.
• HD Hyundai is positioned as the long-term winner because it can integrate power generation via fuel cells and HiMSEN engines.
• Engine stocks are expected to show faster earnings growth from export demand, especially from Chinese shipyards.
• Korean big-three shipbuilders are seen as attractive after the Canada submarine-related correction, with improving 2027 earnings expectations.
• Japan's LNG technology pipeline has faded, reinforcing Korea's LNG shipbuilding competitiveness.