Group 1 - DH Shipbuilding reported consolidated revenue of 296 billion KRW (approximately 1.53 billion RMB) in Q2, a year-on-year increase of 16.7% [1] - The company achieved an operating profit of 62.5 billion KRW (approximately 320 million RMB) in Q2, representing a year-on-year growth of 84.4% [1] - For the first half of the year, DH Shipbuilding accumulated revenue of 603.7 billion KRW (approximately 3.12 billion RMB) and an operating profit of 132.2 billion KRW (approximately 680 million RMB), with an operating margin of 21.9% [1] Group 2 - Since being acquired by KH Investment Group in 2022, DH Shipbuilding has implemented strategies focused on high-value-added vessels, internalizing external manufacturing segments, maximizing equipment efficiency, and fine-tuning cost management, leading to improved revenue and profitability [3] - The company has stabilized the delivery of its main vessel types at a rate of one vessel per month in the first half of the year, with plans to start constructing high-value-added vessels like oil tankers in the second half [3] - DH Shipbuilding aims to maintain its industry-leading operating profit margin and establish itself as a competitive shipyard in the global market [3] Group 3 - In 2023, DH Shipbuilding received orders for two Suezmax oil tankers from Greek shipping company Sun Enterprises, with a total order value of approximately 180 million USD, expected to be delivered in Q1 2027 [4]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - From August 11th to 14th, the BDTI crude oil freight rate index closed at 1019 points, up 1.19% week-on-week (with narrowing growth) and 12.72% year-on-year (with expanding growth). The increase in the number of crude oil vessels in the Red Sea and Gulf of Aden regions continued to boost the BDTI index, but the decline in demand for VLCC tankers and the decrease in shipping distances limited the index's growth [2]. - As of August 8th, the shipping volume showed a pattern of "two increases and two decreases." The shipping volumes of the US and Russia increased by 11.69% and 18.95% respectively, while those of Saudi Arabia and the UAE decreased by 5.14% and 20.83% respectively [2]. - Attention should be paid to important events such as OPEC+ crude oil production increase, US tariff policies, and the Fed's interest rate cut expectations [2]. 3. Summary by Relevant Catalogs BDTI Crude Oil Freight Rate Index Trend - As of August 14, 2025, the BDTI crude oil freight rate index closed at 1019 points, up 1.19% week-on-week and 12.72% year-on-year. The growth rate of the freight rate narrowed seasonally [2]. Tanker Shipping Distance - In the 30th week of 2025 (as of August 1st), the shipping distances of VLCC, Suezmax, and Aframax tankers all decreased week-on-week. The Suezmax tankers had the largest week-on-week decrease, but the rate of decrease slowed compared to the previous week. Compared with the same period last year, the VLCC tankers had the largest decrease in shipping distance [4]. - From August 9th to 13th, the total tanker traffic in the Red Sea increased significantly, with an average of 813 tankers passing through per day, an increase of 20 from the previous week. The number of crude oil tankers increased by 41, while the number of product tankers decreased by 18. Among the crude oil tankers, the number of VLCCs remained unchanged, the number of Suezmax tankers increased by 21, and the number of Aframax tankers increased by 23 [6]. - In the Gulf of Aden, the tanker traffic increased slightly, reaching 154 tankers, an increase of 6 from the previous week. The number of crude oil tankers increased by 7, while the number of product tankers decreased by 2. Among the crude oil tankers, the number of VLCCs increased by 2, the number of Suezmax tankers increased by 3, and the number of Aframax tankers decreased by 2 [6]. Tanker Capacity - As of August 8, 2025, the number of scrapped tankers was 9425, an increase of 2 week-on-week and 83 year-on-year; the number of effective vessels was 18310, an increase of 3 week-on-week and 440 year-on-year; the number of vessel deliveries was 219, an increase of 23 week-on-week and 99 year-on-year; the number of vessel orders was 1343, a decrease of 13 week-on-week and an increase of 115 year-on-year; the number of vessels under construction was 215, an increase of 3 week-on-week and 77 year-on-year [8]. - As of August 9th, the port tanker capacity of all ship types increased. Specifically, the number of VLCCs docked was 2334, an increase of 141 week-on-week; the number of Aframax tankers docked was 2736, an increase of 80 week-on-week; the number of Suezmax tankers docked was 2207, an increase of 17 week-on-week [8]. Crude Oil Shipping Data Tracking - As of August 8, 2025, the crude oil shipping volumes of the US and Russia increased week-on-week, while those of Saudi Arabia and the UAE decreased. Specifically, the US crude oil weekly shipping volume continued to rise by 11.69%; the Russian crude oil weekly shipping volume rose by 18.95%; the Saudi crude oil weekly shipping volume fell by 5.14%; the UAE crude oil weekly shipping volume continued to fall by 20.83% [10]. - In terms of shipping vessel types for US crude oil, the shipping volume continued to rise. The demand for Suezmax tankers increased significantly by 45.16% week-on-week, while the demand for VLCC and Aframax tankers decreased by 8.23% and 12.07% respectively [10]. - The Russian crude oil shipping volume increased week-on-week. The demand for Aframax tankers increased significantly by 55.99% week-on-week, while the demand for Suezmax tankers decreased by 0.42% [10]. - The Saudi crude oil shipping volume decreased week-on-week. The demand for Aframax tankers decreased the most, with the demand for VLCC and Suezmax tankers decreasing by 2.74% and 5.7% respectively [10]. - The UAE crude oil shipping volume continued to decrease. The demand for VLCC and Suezmax tankers decreased, with the demand for VLCC tankers decreasing by 13.48% and the demand for Suezmax tankers decreasing significantly by 46.87%. The demand for Aframax tankers increased by 17.13% [10]. - The total crude oil shipping volume of other countries such as Kuwait, Iraq, Iran, Algeria, and Nigeria decreased slightly, mainly due to the decline in the shipping volumes of Kuwait, Iran, and Algeria [27]. Crude Oil Arrivals - During the week, the crude oil arrivals in China, India, and the Netherlands all decreased week-on-week. The arrivals in China and the Netherlands returned to the levels of the same period last year, while the arrivals in India were lower than last year [28].

Core Viewpoint - Teekay Tankers has actively executed its fleet renewal plan, acquiring modern vessels while selling older ones to capitalize on high asset prices, despite experiencing a decline in financial performance in Q2 2025 compared to the previous year [3][5]. Financial Performance - In Q2 2025, Teekay Tankers reported revenue of $232.9 million, a decrease of 29.1% year-over-year but a slight increase of 0.5% quarter-over-quarter [4]. - Adjusted EBITDA for the same period was $62.0 million, down 50.2% year-over-year but up 4.4% from the previous quarter [4]. - Operating profit reached $54.9 million, reflecting a 48.5% decline year-over-year and a 26.1% decrease from the previous quarter [4]. - Net profit was $62.6 million, or $1.81 per share, marking a 44.0% decrease year-over-year and a 17.7% decline quarter-over-quarter [4]. Fleet Update and Strategy - Teekay Tankers invested $64.3 million to purchase a Suezmax tanker, "Nordic Thunder," and agreed to acquire 50% ownership of a VLCC for $63.0 million [3]. - The company has sold five vessels since May, totaling approximately $158.5 million, which is expected to generate about $46.0 million in book gains [3]. - The average TCE for the Suezmax fleet was $33,089 per day, up 23.6% quarter-over-quarter but down 25.8% year-over-year [4]. - The average TCE for the Aframax/LR2 fleet was $32,101 per day, reflecting an 11.0% increase quarter-over-quarter but a 26.5% decrease year-over-year [4]. Market Outlook - The CEO indicated that the second quarter saw strong spot tanker rates, which were above historical averages, and anticipates a potential increase in seasonal tanker demand later in the year due to OPEC+ production adjustments and low global oil inventories [5][7]. - For Q3 2025, the expected TCE for the Suezmax fleet is projected at $31,400 per day, with 44% of operational day rates locked in, while the Aframax/LR2 fleet is expected to reach $28,200 per day with 42% of operational day rates secured [7]. - Teekay Tankers operates 44 tankers, primarily in the spot market, with a cash flow breakeven point of approximately $13,000 per day [7].

Group 1 - DH Shipbuilding plans to go public on the KOSPI stock exchange later this year, driven by improved financial conditions and a surge in global shipbuilding demand [1][4] - The company is expected to be valued at over 1 trillion KRW (approximately 730 million USD) during its IPO [1] - DH Shipbuilding specializes in constructing Suezmax and Aframax tankers, with its financial situation improving significantly over the past three years [3] Group 2 - In 2022, KH Investment Group led a consortium that acquired DH Shipbuilding for 200 billion KRW, obtaining a 95% stake [3] - The company underwent a long sale process after a bankruptcy restructuring in 2009, with significant changes occurring after being placed under the management of Daewoo Shipbuilding & Marine Engineering in 2013 [3] - DH Shipbuilding has secured two Suezmax tanker orders from Greek shipping company Sun Enterprises, totaling 250 billion KRW (approximately 180 million USD), with delivery expected in Q1 2027 [3] Group 3 - The IPO plan coincides with a booming global shipbuilding industry, which entered a super cycle in 2021, comparable to the boom from 2003 to 2008 [4] - DH Shipbuilding has accumulated a solid order backlog for over three years, indicating strong demand in the market [4]

Company Overview - DH Shipbuilding, formerly known as Daehan Shipbuilding, is set to go public on the Korean Stock Exchange in the second half of this year [1] - The company primarily constructs Suezmax and Aframax tankers and is benefiting from a surge in global shipbuilding demand and improved financial conditions [1] Financial Outlook - Analysts predict that DH Shipbuilding's market capitalization could exceed 1 trillion KRW (approximately 730 million USD) post-IPO [1] Historical Context - DH Shipbuilding previously filed for bankruptcy reorganization in 2009 and was taken over by Daewoo Shipbuilding in 2013, concluding court management by the end of 2015 [3] - In August 2022, KH Investment Group acquired 95% of Daehan Shipbuilding for 200 billion KRW (around 150 million USD), which significantly improved its financial status [3] Market Trends - The IPO aligns with a "super cycle" in the global shipbuilding industry, driven by the need to replace many vessels delivered during the 2003-2008 boom [3] - According to BRS, the global shipbuilding output increased from 1,483 vessels in 2005 to 2,591 vessels in 2010, with many of these ships reaching 20-25 years of age this decade, necessitating the construction of more efficient vessels [3]