Shipbuilding Stocks: Now is the Opportunity... When Will the Stock Price Surge Signal Erupt? / 'This' You Must See to Make Big Profits in Shipbuilding Equipment Stocks | Eom Gyeong-a, Research Fellow

Summary

Eom Gyeong-a, Research Fellow at Shinyoung Securities, explains why shipbuilding stocks have underperformed record earnings and argues that sustained margins, a lengthening cycle, defense projects, and US cooperation will drive a re-rating. She advises holding large shipbuilders and ETFs while monitoring equipment stocks for later entry.

• Record Q1 2026 earnings were the best yet, but gradual margin improvement and profit-taking caused stock underperformance.
• After a ~30% correction, valuations are undemanding; sustained double-digit margins could trigger a break above prior highs.
• The shipbuilding cycle has lengthened due to structural fleet replacement needs, not short-lived shipping cycles.
• Defense projects including KDDX and nuclear-powered submarines are progressing, offering long-term order visibility for HD Hyundai Heavy Industries and Hanwha Ocean.
• US-Korea shipbuilding cooperation (MAGA project) is establishing legal and financial frameworks, widening demand for all Korean shipbuilders.
• Currently large shipbuilders are the priority; equipment stocks benefit later via trickle-down once shipbuilders re-rate.
• Shipbuilding ETFs are a recommended diversified vehicle for those who find individual stock picking difficult.