There are signs of recovery of shipbuilding industry in Korea after the second half of this year.
Choi Won-Kyung, a researcher of Kiwoom Securities, has said, "It is expected that there will be final decision makings for investment in offshore projects worth around $35bn~$40bn including $10bn not firmed up as original schedule. Also, orders for offshore projects are anticipated to expand from the current drilling equipments to production equipments."
Choi expected that since the offshore market condition seems to be firm enough, the increasing orders for environmentally friendly vessels will play an important role in recovery of condition in commercial ship market. He added that he would predict the opinion level for investment in shipbuilding industry to be raised from 'Neutral' to 'Overweight'.
Furthermore, he chose Daewoo Shipbuilding & Marine Engineering and Hyundai Mipo Dockyard as the most recommended shipbuilders and in terms of Daewoo, it is said to have reach a record of the world's largest orderbook with the superb performance in 2012 and is expected to achieve the highest turnover with strong competitiveness in obtaining offshore orders for this year.
He also mentioned about Hyundai Mipo that since product carrier market is prospected to improve first among other merchant ship segments, the shipyard would have the strongest new order momentum among other commercial ship building yards.