1、Korea Shipbuilding&ShippingANCHOR REPORTGlobal Markets Research13 March 2025Significant upside from strong regulations Korea shipbuilding stock prices have rallied 29.6%YTD,vs the KOSPI up 6.8%.Despite a flat newbuilding price,which has a high correlation with valuation,shipbuilding stock prices ral

2、lied driven by market expectations of:1)strong US regulations on Chinese shipyards;and 2)potential opportunities for Korea shipbuilders in US naval vessels newbuilding/maintenance business.We forecast Korea shipbuilding companies 2025F peak 12MF P/B to range from 2.04x to 5.93x(currently:2.61x).In o

3、ur view,the upside potential coming from the US regulation is larger than the implied downside,as we think the US views Chinas growing dominance in the global maritime industry as a threat to its national security.Among the stocks under our coverage,our top pick is Samsung Heavy Industries(010140 KS

4、,Buy).HD Hyundai Heavy Industries(329180 KS,Buy)might move up in our pecking order if strong US regulation is confirmed after March 2025.Key themes and analysis in this Anchor Report:Valuation analysis based on US regulations scenarios US regulations on Chinese shipyards and their impact to Korea sh

5、ipping companies Understanding strong LNG new orders backed by solid US supply 2025F newbuilding price and Korea market share forecastsResearch AnalystsKorea IndustrialsEon Hwang-NFIK+822 3783 2318Heesoo Min-NFIK+822 3783 2333See Appendix A-1 for analyst certification,important disclosures and the s

6、tatus of non-US analysts.Production Complete:2025-03-24 06:33 UTCEQUITY:CAPITAL GOODSKorea Shipbuilding&ShippingGlobal Markets Research13 March 2025Significant upside from strong regulations USTR regulations on Chinese shipyards to bring strong upside potential Upside potential from US regulation la