NH Securities: "For Shipbuilding, LNG Carrier Prices Matter More Than War Benefits"
Caution Needed Against Excessive Hopes for Middle East War Benefits
On March 18, NH Investment & Securities analyzed that, for the shipbuilding sector, the prices of liquefied natural gas (LNG) carriers and the results of naval vessel orders are more important for stock prices than the short-term benefits from the war between the United States and Iran.
Yeonseung Jung, a researcher at NH Investment & Securities, released a report titled "Reassessing the Impact of the US, Israel-Iran War" on this day, stating, "In the case of shipbuilders, stock prices have remained relatively robust even during the recent downturn, driven by expectations of accelerated LNG project development due to rising international oil prices and the suspension of Qatar's LNG exports."
However, Jung pointed out, "There are expectations that the sector's overall valuation could further expand as LNG projects grow," but also cautioned, "It is necessary to be wary of excessive valuation premiums, given that the LNG projects currently underway had already been under discussion prior to the war."
He emphasized, "The anticipated increase in global LNG carrier orders has already been reflected in domestic shipbuilders' stock prices since the second half of 2025. Therefore, going forward, it is not just the simple receipt of LNG carrier orders that matters, but whether the actual prices of the ordered LNG carriers are rising as expected is even more important."
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Jung explained, "With the passage of the Special Act on Investment in the US, expectations are rising for expanded investment within the United States." He added, "However, in order to win orders for commercial ships and naval vessels in the US, relevant legislation must first be amended." He continued, "We maintain a positive mid- to long-term outlook for domestic shipbuilders, but it is important to confirm increases in LNG carrier prices and achievements in naval vessel orders."
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