Investment thesis 3
Investment summary 4
Confident on offshore 4
Offshore: More in 2013 5
Commercial: Needs more time 6
Cyclically attractive 6
Stocks under our coverage (in order of market cap) 7
Offshore order flow sustainable 8
Stronger than 2012 8
Global offshore projects in 2013 9
Commercial shipbuilding 16
Recovery needs more time 16
Bulkers 17
Tankers 18
Containers 18
Valuation 21
Not macro driven trading stocks any more 21
EV/backlog trend 22
Mid-cycle valuation under transformation 22
Higher valuation for offshore is justified 22
Stocks 22
Risks 24
Company write-ups 25
Hyundai Heavy (009540 KS; N; TP KRW240,000) 26
Samsung Heavy (010140 KS; OW; TP KRW50,000) 29
DSME (042660 KS; OW(V); TP KRW39,000) 32
Hyundai Mipo (010620 KS; UW; TP KRW100,000) 35
Disclosure appendix 39
Disclaimer 43