[Edaily Reporter Kwon Oh Seok ] Shinhan Investment Securities announced on the 1st that it is maintaining its “Buy” rating on SEJIN HEAVY INDUSTRIES CO., LTD.(075580)but lowering its target price from 22,000 won to 18,500 won.

Lee Dong-heon, an analyst at Shinhan Investment Securities, stated, “The operating profit margin reached a record high of 18.8% in the first half of 2026 (1H26). Although revenue was partially deferred, operating profit surged due to an improved mix of high-margin LPG tankers,” he said. “With VLGC (Very Large Gas Carrier) freight rates hitting record highs in the first half, orders for LPG carriers continue to flow. The stock price has plummeted from its 52-week high due to a correction in the shipbuilding sector, and a 2026 P/E ratio of 9x represents an excessive discount.”
Previously, first-half revenue totaled 180.7 billion won (down 8.1% year-over-year), operating profit reached 34.0 billion won (up 27.8%), and the operating profit margin stood at 18.8% (up 5.3 percentage points). Second-quarter operating profit reached 20.4 billion won (+131.8%), with an operating profit margin of 21.8%, marking a quarterly record high. The increase in profit despite a decline in revenue was driven by the rising contribution from high-margin LPG tank sales.
The analyst stated, “As of the end of June, the shipbuilding division’s order backlog stood at 194.4 billion won, with tank orders concentrated in the second half of the year—particularly in the third quarter—and expected to total around 30 vessels annually,” adding “We project that the projects to be launched by Sejin Vietnam in the second half will be reflected in 2027 revenue, so we forecast 2026 revenue of 415.1 billion won (+3.1%) and operating profit of 82.7 billion won (+12.7%),” the analyst added.
He added, “While uncertainty regarding new orders is low since the company handles all of HD HYUNDAI Shipbuilding Group’s LPG tank outsourcing, we apply a discount because profit improvement relies more on unit prices and product mix than on volume,” noting, “Risks include a decline in shipyard orders, volatility in quarterly earnings, and initial costs in Vietnam. However, the medium- to long-term growth trend is clear.”