Analysts foresees Hanjin Shipping in the black in April

Daishin Securities, a Korean financial services company, expects Hanjin shipping could turn back into the black in the second quarter.

Mr. Yang Ji Hwan, an analyst at the security company said, "The increasing rally for shipping freight rates has just started from now to the third quarter. For this reason Hanjin Shipping will see profitability turning into the black from April."

He thought not only the GRI plan on the Asia-Europe trade started at March 15th, but also another GRI plan in the Asia-America trade started on April 1st will be successful. Especially, the GRI on Europe routes could make the rates up by more than 50%.

Mr. Yang also assumed the average freight rates in the first quarter for Hanjin Shipping will be estimated higher than 2.2% compared with the same period in 2011.

"Uncertainty about the financial structure still exists, however the possibility for recapitalization is bare," he said. He suggested an investment recommendation to 'buy' and put the target stock price at KRW 15,000. < 김보람 기자 brkim@ksg.co.kr >