KR : Han Kuk Carbon - Nearing inflection point

We see strong order potential from Jun 21, given: 1) adoption of new Marine Pollution Treaty (MARPOL) rules and 2) Qatari LNGC order commencement. We expect 55/73/80 units of global LNGC orders in 2021F/22F/23F (vs. all-time-high level of 77 units in 2018), triggered by Qatari projects (>100 units). Cost inflation could squeeze margin further until 3Q21F, but we see newbuild price hike from shipyards as an upside catalyst for HKC’s ASP from 4Q21F. Maintain Add and W15,000 TP based on 1.0x FY21F EV/backlog ratio.

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