[Featured Stock] HJ Heavy Industries, although it secured an order for two container ships worth 3.572 trillion won from European shipowners, still shows weak performance.

HJ Heavy Industries has secured contracts worth 357.19 billion Korean won (approximately 98.3M won) for the construction of two container ships from a European shipowner. However, despite the favorable order news, the stock price still showed a downward trend during trading.

According to the Korea Exchange and the Financial Supervisory Service electronic disclosure system, HJ Heavy Industries announced that it has signed a single sales and supply contract for two container ships with a European shipowner. The contract amount is equivalent to 17.86% of the most recent sales of 1.9997 trillion Korean won based on the consolidated financial statements as of the end of 2025.

The contract period is from April 24, 2026, to October 31, 2028. Payments will include deposits and prepayments, paid in installments according to project progress. The company stated that the contract amount was calculated based on the initial published exchange rate of 1 USD = 1,480.6 KRW, but the amount may fluctuate during construction and settlement processes in the future.

Recently, HJ Heavy Industries has seen rising market expectations for its shipbuilding division due to consecutive orders from the same European shipowner. Previously, in February, the company announced a contract worth 353.2 billion Korean won for the construction of two eco-friendly container ships of 11,000 TEU. This contract is viewed as an additional order from the same shipowner, further confirming the company’s order-winning competitiveness and partnership.

However, the short-term stock price movement slightly diverges from market expectations. Currently, HJ Heavy Industries’ stock price is 31,150 Korean won, down 900 won (2.81%) from the previous trading day. Analysts believe that although the order win is positive news, it has been compounded by profit-taking after recent stock price increases.

HJ Heavy Industries was spun off from Hanjin Heavy Industries & Construction in 2007, and since then, it has operated with shipbuilding and construction as its two main pillars. In terms of sales composition, the construction sector accounts for 52.10%, and the shipbuilding sector accounts for 47.01%. The shipbuilding division is actively expanding its order book based on its experience in building military and commercial ships.