US MASGA benefits: The real contract "explodes" at this time / HD Hyundai, Hanwha Ocean, Samsung Heavy Industries - this is how they will be this year (Shipbuilding stocks) Eom Gyeong-a, Research Fellow

Summary

Research Fellow Eom Gyeong-a discusses the US-Korea MASGA shipbuilding partnership and its positive implications for Korean shipbuilders. She highlights HD Hyundai's capacity expansion, Samsung Heavy's FLNG leadership, and Hanwha Ocean's LNG carrier strength. She also notes that ship equipment suppliers like Oriental Precision and Sejin Heavy will benefit from increased production spillover.

• MASGA partnership progressing with MRO contracts and potential newbuilds, though concrete projects are expected later in 2026.
• HD Hyundai Heavy Industries has the largest dock capacity and a revenue target of 24 trillion won for 2026, with room to grow further.
• Samsung Heavy Industries leads in FLNG with four projects planned for 2026 and a strong LNG carrier track record.
• Hanwha Ocean is a top-two global LNG carrier builder alongside Samsung Heavy, benefiting from replacement demand.
• Ship equipment suppliers Oriental Precision and Sejin Heavy are seeing revival as major yards expand and outsource.
• Shipping companies' strong finances make them less sensitive to interest rate changes, supporting continued ordering.
• Global ton-mile demand has structurally increased due to longer routes from geopolitical disruptions.
• The global economy appears to be adapting to high interest rates, with shipping activity remaining robust.