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Drewry launches special report: Hyundai Merchant Marine (HMM) - what lies ahead?

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London, UK, 09 May 2018: Drewry Maritime Financial Research Services Ltd. (DMFR), the investment research arm of global shipping consultancy Drewry, is pleased to announce the launch of a special report on Hyundai Merchant Marine (HMM).

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In a quest to establish itself as a global operator and serve as the Korean government’s new flagship operator, HMM has embarked on an ambitious expansion plan by announcing its intention to order 12 eco-vessels of 20,000 teu and eight of 14,000 teu. This significant commitment raises many questions, which DMFR has sought to address in this latest Special Report. The report includes in-depth analysis of the issues faced and assesses HMM’s future prospects given the current and anticipated market context.

 

Key questions addressed by the report include:

  • What prompted the plan?
  • What is the role of the South Korean government?
  • What does the cost structure look like?
  • What are HMM’s key challenges?
  • How do the company’s financials measure up?

 

Report contents:

 

How it all began?

  • Hanjin’s debacle revisited and its impact on HMM
  • HMM’s 2M alliance

What is driving the new orders?

  • Fiscal stimulus
  • Sulphur regulations
  • The shipyard factor
  • HMM’s ambition
  • Scale-up or perish

How is HMM planning to achieve its 2021 target to control 5% of the market?

  • The role of the state
  • Strategic expansion

Key challenges

  • Running new services profitably
  • Managing the chartered-in fleet
  • Debt reduction

Financial analysis

  • Financial metrics
  • Operational metrics
  • Government support
  • Capex status
  • HMM Bond analysis
  • Z-score

Outlook

To learn more about Drewry’s Maritime Financial Research offering or to discuss our credit research services please contact Gautam Khurana at khurana@drewry.co.uk

Media Contact

Gautam Khurana, CFA

Gautam Khurana, CFA

Director, Drewry Maritime Financial Research