1、Korea Shipbuilding&ShippingANCHOR REPORTGlobal Markets Research19 August 2024Disruptions and US electionsKorea shipbuilding stocks rallied 53.2%between end-May and 9 Aug 2024,vs the KOSPI down 1.8%during the same period.Concerns about new orders peaking out in 2024F have eased,as containership ports

2、 face renewed shipping route disruptions.Following comments by former US president Donald Trump on 17 July that,if re-elected,he would allow the oil and gas industry to ramp up domestic production,markets believe Korea shipbuilders could be among the key beneficiaries in a Trump re-election scenario

3、.Despite the recent rally in Korea shipbuilding stocks,we still see 22.1%potential upside in 2024F.We thus change our sector view from bearish to bullish.We forecast Korea shipbuilding companies to trade within 1.5x-2.3x 12-month forward P/B(vs 1.2-1.8x in 2023)in 2024F.Downside risks include a glob

4、al recession;and a failed Trump re-election scenario.Among the stocks under our coverage,our top pick is HD Hyundai Mipo(HMD;010620 KS,Buy).Key themes and analysis in this Anchor Report:Our view and valuation changes are driven by shipment disruptions and a Trump re-election scenario.Analyzing the n

5、ew disruptions faced by containership portsImpact of prolonged disruptions in key indicators,new orders,newbuilding pricesUnderstanding Trump 1.0 and assessing possible Trump 2.0 impact.Korea IndustrialsEon Hwang-NFIK+822 3783 2318Chulwoo Park-NFIK+822 3783 2338See Appendix A-1 for analyst certifica

6、tion,important disclosures and the status of non-US analysts.Production Complete:2024-08-19 20:28 UTCEQUITY:CAPITAL GOODSKorea Shipbuilding&ShippingGlobal Markets Research19 August 2024Disruptions and US electionsDisruptions leading to second stream of new orders and newbuilding price increaseShippi