Considering that commercial ship market is expected to be improved next year, shipyards' stakes are attractive enough in a long-term investment.
Analyst Choi Kwang-Sik of LIG Investment & Securities said "Shipbuilders' share prices are standing at around the lowest-ever Price Book-value Ratio (PBR), however, the market is to make an upturn next year."
He added "In a long-term aspect, these share prices have full of opportunity."
Choi said that there are still growing concerns over commercial ship segment, however, boxship newbuilding market is highly likely to turnaround. Historically, many shipowners have placed new orders in the same year or the next year when profits are satisfactory, he explained.
He added "Particularly, boxship liners started to reduce losses from this first quarter and turned around to see the black in Q2. In the third quarter, their net profit will increase significantly."
He said, "The trend is similar to 2002 and 2010, when shipowners overcame weak earnings."