South Korean shipyards fear a further Kai "predatory pricing"

Deutsche Bank said that although some shipyards are still facing financial pressure, but forced, they may soon return to "predatory pricing" strategy.

The bank explained that, although the Korean-owned shipyard has been trying to avoid providing a discount, but the new situation means that the lack of a single concession fear is imperative.

The bank analyst Sanjeev & nbsp; Rana pointed out that so far this year, South Korean shipyards in the new global only in a single transaction to 28% of the total share, while its competitors in China, winning 48 percent. Part of the reason leading to this gap is that in terms of pricing Korea "bite off dead." Refused to relax.

Rana said in a report that "According to our understanding of the situation from the shipyard, with the exception of gas transport ship, the profit margins of other classes of ships are close to zero, or even negative."

"Such as Daewoo Shipbuilding and Samsung Heavy Industries shipyard has been discharged because of orders on hand after a long time, they can defer the price pressure from customers to ignore, but we are worried that with the lack of large single situation worsening, shipyards restart 'predatory pricing' has been a matter of time, but the cost of doing so, will be the future profitability has been hit hard. "

Next, the four South Korean shipyards reported two of the upcoming third quarter earnings figures. However, according to the current judgment, they are likely to both reported losses.

According to Deutsche Bank in a report quoted market forecast data, Hyundai Heavy Industries will be the fourth consecutive quarter, reported an operating loss, while Hyundai Mipo also the second consecutive quarter in seven below the breakeven line.

According to forecasts, Hyundai Heavy Industries will report 100 billion won (about $ 93.79 million) operating loss in the third quarter, net profit of only negative 94 billion won.

Rana said that the main factors impact on Hyundai Heavy Industries is a subsidiary of its own as well as shipyard - Hyundai Samho and Hyundai Mipo's profit margin is too low, the other is the won exchange rate to rise.

The report predicts that Hyundai Mipo will record a net loss of 47 billion won, including an operating loss of 63 billion won.

Rana explained that in 2012 the shipyard received orders to date are still those cheap diluted its profit levels. As it gains in the second half of 2013 the profitability of orders next year will have to be reflected in the performance of. Meanwhile, Daewoo and Samsung's situation is relatively better than that.

According to market expectations, three quarters of Daewoo and Samsung will get 66 billion won, respectively, and 153 billion won in net profit.