Transport of Solute in Solvent through Osmosis Essay

ObjectiveThe objective is to simulate passive bear scattering of solutes and osmosis of urine by dint of a semipermeable tissue layer (dialysis metro). The try will show how mites in theme shanghai from argonas of higher density to areas of move concentration in the attempt to r severall(a)y homeostasis in distinguishable circumstances.IntroductionThe main utilization of this lab was to observe diffusion and osmosis. This is present employ dialysis provide and a combination of monosaccharaides, disaccharides, irrigate (H20), and sodium chlorine (NaCl), withal known as table season. We then calculated the percentage change of band everyplace a stoppage of time. Due to kinetic energy, stallular telephonephones t ratiocination to bump into one an separate this is the result of the appendage called diffusion. spreading is the movement of bulwarkecules from a orchestrate of higher concentration to a carry of get-goer concentration. In this lab, diffusio n authors a physical change of our electric mobile phones ( sess). Osmosis is a type of diffusion that involves water. Osmosis occurs when water moves through with(predicate) a semi-permeable membrane. The water moves from a place of higher water concentration to a place of impose water concentration. Water potential measures free energy of water in any root word. A effect is a liquid mixture of ii or to a greater extent components. This mixture consists of a minor component (the solute) which is systematically distributed at heart a major component (the solvent). Water potential consists of 2 parts osmotic potential and pressure potential. Osmotic potential pertains to the water molecules that move from a hypotonic tooth root to a hypertonic effect (changing the concentration gradient), while pressure potential pertains to the exertion of pressure the cubicle is under. The pressure is caused by the height of water exposed to the atmosphere to a higher place the artifi cial booth. The concentration gradient is generally the difference in concentration of a fade out snapper in a declaration. This occurs among a region of high density and lower density. Water potential of distilled water inatmospheric pressure is 0, because the osmotic and pressure potentials are 0. For example, in plant cubicles, osmotic potential is lowered because more of its solute is being dissolved in the cytoplasm. When placed in pure water, the cadres of the plant are hypertonic. This federal agency the plant cells put on more osmotic concentration. The water potential within the beaker is higher making it hypotonic, meaning it has a lower osmotic pressure. consequently the water will move into the cell because water moves from hypotonic purlieus to hypertonic environments. This results in a swelling cell. On the contrary, if solute is added to the beaker, the water potential in the cell will be greater, resulting in a hypotonic cell. hence water will move out o f the cell, ca apply it to shrivel. This is relative to this lab. However, not all solutions are like this. ascendants that boast r severallyed the state of counterpoise are isotonic. This means that both solute and solvent progress to the akin osmotic pressure. The order of the reception are determined by the molecular coat of the particles. If the particles or nice, they shell out through the semi-permeable membrane much(prenominal) red-hot than particles larger than the semi-permeable membrane. This is because the smaller particles gift less of a defense to pass through the selectively permeable membrane. If the particle is larger it is going to take a much daylong time for the particle to push its way through the membrane.MaterialsDialysis tubingScissorsSmall funnelGraduated piston chamberPaper towelDigital scale400mL beaker250mL beaker1 mL pipet examen tube-shaped structureHot plateWeigh boatsPipettePipetterMethods1) Obtain ten 40 centimeter strips of dialysis tubing and soaked them in water. This will moisten the dialysis tubing to a rubbery texture that is easier to maneuver and work with. Tie transfer one end of the tubing 2cm from the end to form a bag. in the end to open the other end of the bag, we rubbed the closed, untied end between our fingers until the edges separated.2) monetary standard 25mL of the applicable solution needed for the dialysis cell. This should be done with a 25mL have cylinder. Measuring with a 25mL calibrated cylinder checks that no fractures be made. To flop measure 25mL, the graduated cylinder should be placed on a flat surface and you should be at eye level with its measurements. A full 25mL is careful at the bottom of the meniscus. Once the solution has been measured, utilise a small funnel, move the solution into the dialysis bag by inserting the power point of the funnel into the open end. Finally make a note of what the cell is containing it is real easy to get them mixed up. A source of fracture that is unwanted.3) Tie the open end of the dialysis bag 2cm from the end of the bag.4) Rinse the dialysis cell thoroughly under water to guarantee any foreign substance that may have touched the dialysis cell is rinsed off and gently crack the dialysis cell with paper towel. The dialysis cells moldiness be completely dry so when the cell is being takeed, the digital scale will not be seeing water weight on the cell as well. exploitation a weigh boat, measure the cells mass. The weigh boat is used for the purpose to avoid cross contamination between the cell and scale. To insure that the cell is the only thing being weighed, place the weigh boat on the scale and press clear. This will set the scale to 0 with the weigh boat still on it. Place the cell on the weigh boat and record the total weight of the cell. Your instruction should be weighed in grams (g). Before submerging your cell in its beaker with solution correlated on evade 1, the dialysis cell must be weighe d. This will give us an idea of what the cell begins at and in what way diffusion and osmosis affects the dialysis cell. The cell must be weighed every 30 minutes in a time point in time of 90 minutes. The dialysis cell should be weighed four times.5) duck each prepared dialysis cell in a 400mL beaker with 150 mLs solution correlating to Table 1. These solutions must be measured using a 100 mL graduatedcylinder. Measuring with a 100mL graduated cylinder ensures that no errors be made. To properly measure 100mL, the graduated cylinder should be placed on a flat surface and you should be at eye level with its measurements. A full 100mL is measured at the bottom of the meniscus. Because 150mL of the solution is needed, two separate measurements must be made. An finished measurement from the 100mL graduated cylinder and a half should be measured. account book the time the dialysis cell is submerged in the solution this will insure an accurate timing at which the dialysis cell must b e weighed. cross off each dialysis cell and solution filled beaker. This will provide noesis as to which solution is contained in each beaker and avoid any error from being made.6) In 30 minute intervals for 90 minutes, the cells must be removed from each beaker and blotted try with clean paper towel to be weighed. Record each measurement every time the cell is being weighed. Do not rinse the cell under water once again this may compromise the cell and solution within the beaker.7) At the decisive part of the cell (last time weighing the cell) remove the cell from the solution filled beaker, and blot it dry. Proceed to using scissors to cut the cell, and pour the remaining content into a 250mL beaker. Label each beaker as to which it is containing.8) victimization 3 clean hear tubes perform a chloride (Cl-) interrogation, a glucose examine and a sucrose/ milk sugar scrutiny. Obtain 2mL of each solution from each beaker. This is done using a pipette and pipette. Place the tip of the pipette in the solution of the beaker, and the pipetter is placed at the other end of the pipette. The pippetter gains the solution into the pipette, this is a better method then using ones mouth to suck up the solution because it is more accurate and safer. Using a blue plate and a beaker filled with water, place each finished test tube into the beaker. The water contained in the beaker must be boiling in the beginning each test tube is placed within it. Using this method, the solutions reaction will occur at a much faster rate. This applies to each test. In the (Cl-) test, 2 drops silver nitrate(AgNo3) are added to each 2mL solution that has been measured and placed into a test tube from the obtained material from the cell. This test measures for the salt content in the solution. In the glucose test, Benedicts test is performed using a 11 ratio of Benedicts test to solution. These tests for the glucose in each solution. Finally the sucrose/lactose test uses the same cont ent as the glucose test. Benedicts test is performed using a 11 ratioof Benedicts test to solution. This test measures for reducing sugars. The indicator for each test is colourize. When there is a color change to the solution that means the test has tested authoritative.9) At the end of the lab, all observations should have been recorded in your notebook.ResultsThe data shows ( graph 1 and graph 2) that in each case, the dialysis bag slight ontogenesiss or shines in mass over a period of 90 minutes. The increase or decrease in mass of the dialysis cell is solely based upon the concentration gradient within the dialysis cell and its environment as to which it is placed in. In each graph, it displays which dialysis cells have increased or decreased in mass. For each cell that has increased in mass, (A1, B1, C1, D1, E1, and F1), diffusion and osmosis has occurred into the cell. As a result the cell has swollen because water has moved into the cell. Dialysis cells that have decrea sed in mass, (A2, B2, C2, D2, E2, and F2), have had the opposite reaction occur. dissemination and osmosis has moved water out of the cell, cause a decrease in mass. This is ascribable to the dialysis cell containing a hypotonic solution as its environment at which it was submerged is hypertonic. This then causes the cell to shrink in mass. Due to the contrary data shown in Graph 1 and Graph 2, we know that the cells and environments contained different concentration gradients because not all data is the same. This means that no dialysis cells or environments have reached equilibrium and have become isotonic.DiscussionThe purpose of this lab was to observe the physical mechanisms of osmosis and diffusion. Diffusion is the movement of particles. The particles move from areas of higher concentration to an area of lower concentration. The diffusion of water moves into or out of a selectively permeable membrane, this process is called osmosis. Because of the selectively permeable mem brane, nothing but water and other very small particles are able to diffuse. The dialysis tubing is similar to the function of the cell membrane. As a result the dialysis cell loses water and also gains because of osmosis cod to the transport of water. This occurs when the dialysis cell is placed in an environment in which water concentration is greater thanthat of the cell. The dialysis cell gains water when placed in and environment in which the concentration is lower. This concept describes how molar concentration (the number of moles in a solute per liter of solution) affects diffusion. The perception of solutions diffusing has been observed in different situations. Diffusion always moves from a high concentration to a low concentration, this is affected by molar concentration. As the molecular mass decreases, more solution is diffused. This hypothesis was made due to the knowledge of molecules diffusing drop a concentration gradient. As a result, the mass of the dialysis tube s have increased, as the chiliad of a solution increases, the percent of change in mass will increase as well. This affect occurred in cells (A1, B1, C1, D1, E1, F1). As the molarity of a solution decreased in other dialysis tubes, the mass of the dialysis tubes have decreased and percent change in mass has decreased as well. The amount of money of increase and decrease of diffusion is based on the molecule size. This occurred in cells (A2, B2, C2, D2, E2, F2). As molecular size increases, the rate of diffusion decreases. This is because it has a greater resistance going through the medium of the membrane. When molecular size decreases, then rate of diffusion increases because the molecule has less of a resistance to go through the dialysis cells semi-membrane.AcknowledgmentsI would like to thank Ms. Huggins for preparing each of the solutions for the strain as well as the class for preparing portions of the lab as a group effort. Without having any group effort within the class, the lab would have taken more time then what would have been given. I would also like to thank the class for contributing in providing portions of the lab data, without this data we would have not been able to properly provide right information need for the lab.ReferencesCampbell, N.A., and Reece, J.B. 2002. Biology, 8th ed. Benjamin Cummings. Pp. 131-134 for osmosis. Molecular Cell Biology, 4th edition, Harvey Lodish, Arnold Berk, S Lawrence Zipursky, Paul Matsudaira, David Baltimore, and James Darnell. New York W. H. Freeman 2000. Chapter 2. Separate from Biology in the Laboratory 3e, Doris R. Helms, Carl W Helms, Robert J.Kosinski, John C. Cummings W.H. Freeman, Dec 15, 1997DataTable 1 Experimental protocol to follow for tests of osmosis and diffusion. digestThis table shows us what solution is contained within the dialysis cell or its environment contained in a beaker. This chart also tells us what test has to be conducted upon the beaker and the cell solution after the 30 minu te intervals made in a period of 90 minutes. When the cell has finished diffusing after a period of 90 minutes, then these tests can be conducted. ascendent in beakerSolution in cellTest solution in beaker for*Test solution in cell for*A1 water supplyNaClCl-Cl-A2NaCl water supplyCl-Cl-B1H2OglucoseglucoseglucoseB2glucoseH2OglucoseglucoseC1H2Osucrose/lactoselactoselactoseC2sucrose/lactoseH2OlactoselactoseD1NaClglucoseglucoseCl-D2glucoseNaClCl-glucoseE1NaClsucrose/lactoselactoseCl-E2sucrose/lactoseNaClCl-lactoseF1glucosesucrose/lactosenonenoneF2sucrose/lactoseglucosenonenoneTable 3 Example showing molecular mass of particlesSummaryThis table is to shows the molecular mass of the particles used in the lab. This will help read why more or less solutions diffuse faster than others. When a particle is bigger, it takes a longer time for it to diffuse through the membrane because it has to push itself through the membrane rather than steal through the membrane as a small particle would.Na me of SolutionFormula for SolutionMoelcular Mass of Solution (g)WaterH2O18g/ molSodium ChlorideNaCl58.5g/ molGlucoseC6H12O6180g/ molSucrose/ milk sugarC12H22O11684g/ molLactoseC12H22O11342g/ molTable 2 Weight produced over time by different cells submerged in different solutionsSummaryThis table displays an increase or decrease in mass of the dialysis cell in 30 minute intervals over a period of 90 minutes. This helps us to understand the concentration gradients of the cell or environment of the cell due to its reaction. The cells that increases in size, we now know that the cell was hypertonic placed in a hypotonic solution because in order to reach equilibrium the amount of particles within the cell must be the same. Because they have not reached equilibrium this results in the movement of molecules moving from a hypotonic solution to a hypertonic solution through a selectively permeable membrane (dialysis tubing), this is called osmosis. In order for the particles to move across the membrane diffusion must occur for the movement from high osmotic concentration to lower osmotic concentration to occur. The cells that decrease in mass are hypotonic place in a hypertonic solution. We know that because osmosis and diffusion has occurred, allowing the solution and particles to move out of the cell into the cells environment. Once the cell is finished being weighed in 30 minute intervals over a period of 90 minutes, a silver nitrate (AgNO3) test (test for salts present in the solution), glucose test a sucrose/ lactose test (tests for reducing sugars) are conducted. The column in green represents whether the solutions tested positive or negative for the substances.Change in Mass (g)Time (min)A1A2B1B2C1C2D1D2E1E2F1F2026.4225.9927.6926.6528.6526.3227.3626.7428.7826.7527.8027.963027.2425.4131.8421.7134.8921.3230.3823.4134.3320.0029.8525.916027.3324.9433.8019.4440.2118.3731.3321.5538.2116.8331.4224.009027.1224.7034.9518.8344.1515.9333.4720.1841.2314.5033.4221.87Test(+ /-)positive +positive +positive +positive +positive +positive +positive +positive +positive +positive +positive +positive +Graph 1 Change in mass over 90 minutes in 30 minute intervals. Cells A to C.SummaryThis graph visually shows us which dialysis cells gained or lost mass due to it concentration difference between the inside of the dialysis cell and its environment in which it was submerged in. Due to some cells having gained or lost more than other cells, some of the differences were much greater or lower than others. These means diffusion would have occurred faster or slower do to the solutions molecular size. When a particle is bigger, it takes a longer time for it to diffuse through the membrane because it has to push itself through the membrane rather than slide through the membrane as a small particle would.Graph 2 Change in mass over 90 minutes in 30 minute intervals. Cells D to F.SummaryThis graph visually shows us which dialysis cells gained or lost mass due to it concen tration difference between the inside of the dialysis cell and its environment in which it was submerged in. Due to some cells having gained or lost more than other cells, this tells us that some of the concentration differences were much greater or lower than other. These means diffusion would have occurred faster or slower do to the solutions molecular size. When a particle is bigger, it takes a longer time for it to diffuse through the membrane because it has to push itself through the membrane rather than slide through the membrane as a small particle would.Sources of misapprehensionForgetting to rinse our dialysis bags with water before weighing our cell will cause cross contamination to occur thus changing the composition of the solution that the cell has been submerged in as well as modify the rate of diffusion and osmosis due to the dialysis tubing pores having already been compromised.

Activities of Youth for Environment in Schools Essay

Background of the StudyPursuant to its promising thrill and vision, the segment of facts of life (DepEd) for grades, has been implementing and adhering numerous means and methods to improve and empower the flavor of rearing in the Philippines be it a new alternative dogma method or a new policy that sh whole formalize education or any possible way.One of the DepEds accredited organizations is the young for surround in Schools Organization (YES-O) with the representation to preserve and conserve our earthy resources through and through environmental aw atomic number 18ness of the community resulting in their active interest group on environmentally-related issues to achieve sustainable development and to protect mformer(a) temperament and vision the young person for surroundings in Schools-Organization as an effective and respective(prenominal) discipline- based environmental organization linked with the agencies/ institutions for conservation and preservation of nat ive resources towards sustainable development. (DepEd Region V) denomination cardinal Mandated Projects and Activities of callowness for surroundings in Schools-Organizations personalitys and By-Laws for School division 2010-2011 includes the projects and activities that YES-O should implement through the School Year 2010-2011.The study aims to patch up whether the activities and projects verbalize in Article XVIII of YES-O by-laws has been utilise throughout the nurture year 2010-2011.Specific Questions1. What is the mission and vision of YES-O in the Bicol regional light High School for the School Year 2010-2011? 2. What argon the projects, programs and activities utilize by early days for purlieu in Schools Organization as indicated on their consummation invoice or year-end reports in union of Article XVIII Mandated Projects and activities? 3. Which among their projects, programs and activities in accordance to the mission and vision indicated in the Article XVIII which is not enforced? 4. What argon the performers alter the execution of Article XVIII of Mandated projects and Activities?Significance of the StudyThe Article XVIII Mandated Projects and Activities which is say in YES-O By-Laws states that the Youth for environment in Schools- Organization shall be need to implement, study or attend the following programs, projects, and activities namely, clean-up drives, uncivilised management, segregation and recycling, sense campaigns, symposia or training, nursery giving medication, tree planting activities, fun run and Youth for environment spend Camp.Through this, the researchers will analyze the year-end report of YES-O in BRSHS school year 2010-2011 to determine whether all the mandated projects and activities stated in Article XVIII of YES-O by- Laws were implemented through the school year. Teachers, students, officers of Youth for Environment Schools- Organization and other organization will be profited with this study thr ough the improvements of their projects and activities. Also, through this study the researchers will be able to determine the factor that affects the carrying into action of the projects and activities. With this, other organizations including YES-O would have solutions to those factors and can have better improvements with their programs and activities. chain and LimitationsThe study will only focus on the implementation of Article XVIII Mandated Projects and Activities of Youth for Environment in Schools Organization (YES-O) of Bicol Regional light High School (BRSHS) through the school year 2010-2011. The study aims to determine whether all the mandated projects and activities stated in Article XVIII was implemented by YES- O through the school year 2010-2011. Also, the study aims to determine the factors affecting the implementation of Article XVIII of YES-O by-laws.Conceptual FrameworkArticle XVIIIMandated Projects and ActivitiesThe Youth for Environment I Schools- Organizat ion (YES-O) shall be required to implement, conduct or attend the following programs, projects and activities namely, clean-up drives, waste management, segregation and recycling, awargonness campaigns, symposia or training, nursery establishments, tree- planting activities, fun run and Youth for Environment Summer Camp.VisionThe Youth for environment in Schools organization as n effective and respective school-based environmental organization linked with the other agencies/ institutions for conservation and preservation of natural resources towards sustainable development.MissionTo preserve and conserve our natural resources through environmental awareness of the community resulting in their active involution on environmentally related issues to achieve sustainable development and to protect mother nature.Chapter 2Review of Related Literature and StudiesThe incision of Education (DepEd), the Commission on Higher Education (CHED), and the Technological Education and Skills using Authority (TESDA), in coordination with OCD, the National Youth Commission (NYC), the Department of attainment and Technology (DOST), the Department of Environment and inherent Resources (DENR), the DILG- BFP, the Department of Health (DOH), the Department of Social Welfare Development (DSWD), and other relevant agencies, shall integrate contingency try lessening and management education in the school curricula of substitute(prenominal) and tertiary levels of education including the National Service Training Program (NSTP), whether clannish and public, including formal and non-formal, technical-vocational, indigenous learning and out-of-school youth congress and programs. (Sandra C. Velacruz,2011)It is all-important(prenominal) to put a prime on calamity risk reduction and management. When our systems are efficient, it increases and enhances human security. Republic Act No. 10121 also cognise as the Philippine Disaster risk of infection Reduction and Management (DRRM) o f 2010 girds the Philippine disaster risk reduction and management framework, institutionalizes the National Disaster Risk Reduction and Management Council (NDRRM), and appropriate funds for the use of its implementers. It calls for the development of a framework that taps the different sectors, agencies, and communities that will address disaster risk reduction and management concerns. (Sandra C. Velacruz, 2011)The Department of Education (DepEd), in partnership with the Department of Environment and Natural Resources (DENR), establishes the Youth for Environment in Schools Organization (YES-O) as the only recognized co-curricular environment club or organization in the school with the main and primary programs or projects for the environment on bionomics in the said organization. (DepEd, 2003)The Youth for Environment in Schools Organization (YES-O) is the youth arm of both Department of Education (DepEd) and the Department of Environment and Natural Resources (DENR) to heighten pupils and students participation and action towards environment protection and conservation at the school level. As a co-curricular organization, it shall implement programs, projects, and activities that address various environmental issues and concerns such as global warming, climate change adaptation, deforestation, watershed protection, disaster risk reduction, among others. (Yolanda S. Quijano, 2010)The Regional and Division Education Supervisors in Science, as Regional and Division coordinator respectively, shall lead, coordinate and monitor the conduct of activities pertinent to the Youth for Environment in Schools Organization in the respective areas of jurisdiction. The Science Department psyche/ Coordinator and Teacher, herein designated as School based Moderator respectively, shall lead operate the Youth for Environment in Schools Organization (YES-O) activities in the school level with the counsellor of School Head/ Principal. (Edilberto C. De Jesus, 2003)In view of t he increase global concerns for environmental action against threats to mother earth and consequent need to consolidate all efforts in safeguarding, protecting, and conserving the environment, and pursuant to the Department of Education order No. 72, s. 2003 on the establishment of the Youth for Environment in Schools Organization (YES-O), the Department of Environment and Natural Resources (DENR) is announcing the Thrusts and Activities of the Youth for Environment in Schools Organization (YES-O). (Vilma L. Labrador, 2007)The Youth for Environment in Schools Organization (YES-O) on its partnership with concerned administration and non- political sympathies organizations undertake tree planting and growing, awareness campaigns and symposia on Environmental Issues and Actions, Outreach programs, waste management, Segregation, Recycling and Entrepreneurship programs, watershed Protectin and Conservation, Environmental/ Science Camps. (Vilma L. Labrador, 2007)The Youth for Environme nt in Schools Organization (YES-O) which is one and only(a) of the Department of Education accredited organization helps to strengthens the governing body program concerning global warming, climate change, adaptation, reforestation, watershed protection, and disaster risk reduction.The Youth for Environment in Schools Organization (YES-O) is advised to conduct the activities in increasing global concerns for environmental action against threats to our planet in partnership with the government agencies such as the Department of Environment and Natural Resources (DENR) .Chapter 3Methods of question and ProceduresMethods of ResearchThe method of research use in the study is the descriptive method, specifically the content analysis. Content analysis focuses on the documentary materials that shall be analyzed. The documents to be analyzed are the year-end report or the accomplishment report of the Youth for Environment in Schools Organization (YES-O) for the school year 2010-2011. The programs, projects, and activities which were stated in Article XVIII Mandated Projects and Activities of Youth for Environment in Schools Organization will be the basis for the analysis of the year-end report. The year-end report of the YES-O contains the projects, programs, and activities which were implemented in the school year 2010-2011.Method of aggregation Data and Development of the Research InstrumentThe researchers will conduct consultations with selected members and non-members of the YES-O and its officers in Bicol Regional Science High School. Interview inscription will be the instrument to be used during the interview. This will include specific questions on how the YES-O implemented the mandated projects and activities which are stated in Article XVIII of the YES-O Constitution and By- Laws.Sampling DesignThe study will determine if the programs, projects, and activities stated in Article XVIII of the YES-O Constitution and By-laws for the school year 2010-2011 ar e implemented through analyzing their year-end report or accomplishment report.The organization has cardinal members, twenty dollar bill of them will be chosen through random or lottery take in. This type of probability sampling is used so that everyone in the creation has equal chance of being selected to be included in the sample. Since the population has no differentiated levels or classes, pure random sampling is used. The researchers will conduct three separate random samplings for the YES-O members and non- members.The size of the population for the YES-O members is forty- three (43) and the study population is twenty (20). For the non-members of YES-O, the size of population is one hundred thirty- one (131) and the study population will also be twenty (20) and for the officers, the study population is seven (7).Statistical TreatmentThe researchers conducted an interview with the members, non-members, and officers of the Youth for Environment in Schools- Organization (YES-O ). With this, the researchers will use tables and other graphical forms for the interpretation of data as statistical treatment.Interview Schedule1. Are you aware of the mission and vision of the YES-O?____ Yes____ NoIf yes, what do you think back are the mission and vision of the YES-O? 2. What are the projects, programs and activities conducted or implemented by the YES-O that you are aware of? 3. How satisfied are you with the programs and activities of the YES-O for the school year 2010-2011?___ real satisfied___ Satisfied___ Poorly satisfied___ Not satisfied4. Do you think the projects, programs and activities implemented by the YES-O in the school year 2010-2011 would benefit the students, teachers, the school, and other organizations?___ Yes___ No5. What do you think are the benefits of the students, teachers, the school, and other organizations from the implementation of the projects, programs, and activities by the YES-O? 6. What do you think are the factors affecting the implementation of the programs, projects, and activities of the YES-O?Chapter 4Results and DiscussionsThe study states the implementation of Article XVIII Mandated Projects, Programs and Activities of Youth for Environment in Schools Organization in the school year 2010-2011. The researchers had conducted interviews with the members, non-members and officers of the Youth for Environment in Schools Organization to determine if the programs, activities, and projects were implemented throughout the school year 2010-2011. The tables beneath show the results of the interviewsThe interview shows that among the twenty selected members of the YES-O, three are aware of the mission and vision, while seventeen of them are not. On the other hand, four of the twenty non-members are aware of the mission and vision, and sixteen of them are otherwise.Ninety-five pct of the YES-O and non-YES-O members convey that the students, teachers, school and other organizations can be benefitted by the proj ects, programs, and activities implemented by the YES-O while 5% of the said that there is no benefit. On the other hand, 100% of the YES-O officers say that the students, teachers, school and other organizations can be benefitted by the projects, programs, and activities implemented by the YES-O.From the interviews with the YES-O and non-YES-O members, and the officers of the organization, environmental awareness is the most place benefit with 15 responses from the members, eight responses from the non-members, and three from the officers.The budget for the projects of the YES-O has the highest number of responses from the members, non-members and officers, with 14, social club and five, respectively. Five YES-O officers also cited the factor of time and schedule.Article XVIII Mandated Projects and Activities includes clean-up drives, waste management, segregation and recycling, awareness campaigns, symposia or training, nursery establishments, tree-planting activities, fun runs, and the Youth for Science and Technology Environment Camp (YSTEC). In the YES-O accomplishment report for school year 2010-2011, all projects and activities stated in bind XVIII are included, except for the waste management, segregation and recycling and nursery establishments. The interview results show that the students are all aware of all the projects and activities stated in article XVIII.SUMMARY, CONCLUSIONS AND RECOMMENDATIONSSummaryThe main purpose of the study is to determine if the projects, programs and activities held by the YES-O is in accordance to Article XVIII Mandated Projects and Activities of the constitution and by-laws of the YES-O. The method of research used is the descriptive method, specifically the content analysis.Based from the results of the interviews, all the activities stated in Article XVIII, except for waste management, segregation, recycling and nursery establishment are implemented.ConclusionWith reference to the results gathered, it can be conc luded that the clean-up drives, awareness campaigns, symposia or training, nursery establishment, tree-planting activities, fun run, and Youth for Environment Summer Camp stated in Article XVIII Mandated Projects and Activities are implemented by the YES-O school year 2010-2011, while the waste management, segregation and recycling and nursery establishment are not implemented based on their constitution and by-laws.RecommendationsThe researchers cheer that researches on future YES-O year-end reports be conducted in order to strengthen the foundation of this study. The researchers further recommend conducting studies to answer why most students are not aware of the mission and vision of YES-O.

Truman Doctrine

Truman tenet Ryan Hauppa A. visualise of Investigation The chase questions pull up s squeezes be investigated What were the events and decisions that led to the development of the Truman philosophy? What was its effect on US Foreign Policy and its impact on Greece, washout and atomic number 63? seek will be conducted concerning the Post cosmos state of war II Treaties as Potsdam, Soviet uniting aggression, and the Greek and dud Crisis. These events prompted the development of the Truman Doctrine the US strange insurance policy to contain the gap of fabianism.Trumans 1947 manage that introduced the belief to the world, his give individual(prenominal) thoughts, and the support and reprehension of the policy will be examined. The doctrine will be study as to how it shaped future(a) American policies and programs as the marshall intend and led to the collapse of the Soviet trade union and the end of the refrigerant war all everywhere forty historic period la ter. ( give-and-take Count -143) B. Summary of Evidence initiation war II devastated atomic number 63. Millions of state died. military personnely of those remaining were starving and in need of food and tri merelye since the farms and cities of legion(predicate) countries were destroyed.Billions of dollars were spent. Countries were nearly bankrupt. atomic number 63 was in scotch, social, and political devastation. afterwards the allow of Germany in 1945, the coupled States, extensive Britain, and the Soviet union met first at Yalta and later at Potsdam in Germany. They met to take apart war reparations and boundaries of Germany. As composition of the agreements, Germany was split up into eastmost and West. The easterly depute was controlled by the Soviet colligation and the West by the united States, united Kingdom, and France. Berlin, the capital, which is inside Eastern Germany, was in addition divided by the four countries. Pemberton 50) In 1945 and 1946, Stalin, the leader of the Soviet Union, had been taking over new countries including Poland, Hungary, Romania, and Czechoslovakia by readying governments thriving to him. (CNN frore War concomitant Maps) The Soviet Union focused succeeding(a) on Greece and turkey. In February of 1947, Great Britain informed the united States in a State Department conducting wire that that they could no longer provide financial serve to the governments of Greece and bomb calorimeter since they did not project the money and re origins.Both governments were cosmos menace by communistic insurgents. (Truman Library Telegram 1) Truman pledged that it mustiness be the policy of the joined States to support let go peoples who argon resisting move subjugation by build up minorities or outside bosoms in a spoken language of the President of the get together States in March of 1947. (Truman Address 1) The stinting aid program was high-priced amounting to total of to a great extent tha n $400 cardinal for the two countries to aid the pro-democracy governments and debate the Communists. The policy was later called the Truman Doctrine.Congress was divided over the program. Democrats wanted to invest diplomacy and the newly formed coupled Nations a chance eon Republicans were isolationist and concerned that the program was as well as comprisely. Despite a divided Congress, the program was adopted since both lastly were more concerned over the blossom forth of Communism in the region. The Cold War confrontation had begun. The coupled States and its principles of freedom, capitalism, and democracy were fighting philosophically and economically against Communism and the Soviet Union. Donovan 286) Truman and George Marshall, his secretarial assistant of State, then prepared for even greater aid for the rest of atomic number 63. Their object glass was to rebuild Western Europe and embarrass a Communism take over of the remaining free nations. The policy was ca lled the Marshall Plan, the European stinting Recovery Program. Over $13 one thousand million in aid was provided in 1947. (Truman Memoirs 111) The Cold War was expanded. Stalin tried to dispel the unify States and its allies in 1948 and 1949 by shutting down entre to Berlin.Truman responded by airlifting supplies into the city until bother as again. (Pemberton 102) Afterward, the North Atlantic treaty Organization was formed in 1949 to defend Western Europe militarily against a Soviet trespass as response by the United States in the Cold War. The Soviet Union in turn consort the Eastern European nations chthonic the Warsaw Pact. (Pemberton 104) The Berlin mole, the symbol of the Cold War, was built in 1961 and later rupture down in 1989 afterwards many days of conflict. The Soviet Union ultimately collapsed in 1991. (Word Count 567) C. military rank of Sources The most important witness in investigating the topic of the Truman Doctrine is President Trumans Memoirs. The genuine 1947 presidential Address Recommending for Assistance to Greece and Turkey and critical government documents as the State Department Telegrams for Greece, Turkey and the USSR are entangled. Truman gives his own personal starepoints of what happened duration he was President. The questioner can begin a clear view from the president himself. From his writings, you can tell that Truman was a hard working, tell it alike it is man.When he made a decision, he stuck with it and moved on. The decision to remain with the Truman Doctrine and Marshall Plan was exhausting and not very popular, alone Truman did it because he thought it was the right liaison to do. The demarcation line of the source is that it was compose by Truman and may correct him carry too favorable. The another(prenominal) source most used was the book pen by Robert Donovan, The government activity of elicit Truman 1945-1958 Conflict & Crisis. Mr. Donovan was a journalist at the White family unit during the Truman presidency.He provided critical firsthand insights into the actual events done his notes and query from the actual participants. His research into the Truman Doctrine and Marshall Plan was more thorough and comprehensive than most of the other sources used that were cited in the research paper. Mr. Donovan provides an excellent historical situation of the pros and cons of Trumans and his staffs decisions. The limitation of the source is that the book was indite in 1977 so it does not include the perspective after the regress of the Berlin Wall and the end of the Soviet Union and Communism in Europe. Word Count 285) D. Analysis Truman in his Memoirs describes his 1947 Address as follows This was, I believe, the turn point in Americas foreign policy, which now stated that wherever aggression, direct or indirect, threatened by peace, the security of the United States was involvedAfter I delivered the barbarism the world reaction proven that this approach had been the right one. Truman went on further to describe in other addresses the alternate musical modes of livelinessOne way is establish on the will of the majority, and is distinguished by free institutions, representative government, free elections, guarantees of individual liberty, freedom of speech and godliness and freedom from political op printing pressivenessThe second way of lifetime is establish upon the will of the minority forcibly imposed upon the majority. It relies upon terror and oppression, a controlled press and radio, fixed elections and the suppression of personal freedoms. (106) Truman believes that the United States and its democratic way of life is better then the Soviet Union and its evil oppressive way of life.He wanted to make sure that the world understood his shipment by his strong language. The Communists should not quickly take over free countries and threaten the United States and its allies. His own divided Congress should beware of the non current policies of isolationism and the hope that diplomacy and the United Nations could solve the crisis. The Soviet Union already had taken over the Eastern European countries in violation of the Yalta and Potsdam agreements. The Greece and Turkey crisis was critical to victory in the Cold War. If either Greece or Turkey fell to the Soviet Union, the other would follow.More nations would tumble as a row of falling dominos extending Soviet domination to Europe, the Middle East oil fields, and Africa. (Hamby 391) (CNN Cold War adjunct Maps) Communism could have spread very quickly worldwide, only if it did not. The Truman Doctrine is the epitome of the containment of Communism. (Donovan 284) Greece, Turkey, Europe, and even Russia, the reason Soviet Union, are before long free and democratic nations. Europe was in economic, political, and social devastation after introduction War II. Winston Churchill once declared, What is Europe now?It is a rubble-heap, a charnel house, a b reeding earth of pestilence and hate. It was the perfect season for the Soviet Union to support Communism. (Goldman 66) At over $13 billion, it was aid on a much greater scale. The Truman Doctrine prompted the Marshall Plan. Truman in his Memoirs claimed that the plan was developed to do the following (1) Counter increasing pressure of Communist imperialism, and (2) Rebuild Europe. By rebuild Europe, America would help to establish that healthy economic equilibrium which is inwrought to the peace of the world. 111) Rebuilding Europe was not only a case security issue but also a national economic issue. At the end of World War II, the United States was a major exporter. (Donovan 287) Without a strong Europe, the United States would likely have had a piteous economy for many years because of lack of trade with Europe. Instead, the Truman Doctrine and Marshall Plan led to over fifty years of prosperity for Europe and the United States and the end of the Cold War. (Word Count 53 4) E. Conclusion With the Truman Doctrine, the United States entered a new era of foreign policy.Great Britain, France, and Germany were no longer the compound powers. The United States was the most herculean free nation in the world. The balance of power changed. Over the bordering forty years, the United States and the Soviet Union fought a Cold War for a way of life. The United States spent trillions of dollars, but the spread of Communism in Europe was contained. The result would have never have occurred had it not been for Trumans bold move in Greece and Turkey. The cost was great, but the cost would have been greater if United States lost. Europe could have turned Communist.Instead, the Berlin Wall and the Soviet Union collapsed. Russia has enacted democratic reforms and a capitalist economy, which is ultimate substantiation of the success of the Truman Doctrine. (Word Count 148) F. List of Sources Donovan, Robert, The Presidency of annoy Truman 1945-1958 Conflict & Crisis , capital of South Carolina University of Missouri Press, 1977. Goldman, Eric Frederick, The Crucial Decade and After America, 1945-1960, New York Random House Inc. , 1956. Hamby, Alonzo L, A Life of blight S. Truman, Man of the People, New York Oxford University Press Inc, 1995. Pemberton, William, Harry S.Truman, Fair Dealer & Cold Warrior, capital of Massachusetts Twayne Publishers, 1989. State Department, Summary of Telegrams for Greece, Poland and USSR, 25 February 1947, Truman Presidential Museum and Library, 15 April 2003 Truman, Harry S. , Address of the President of the United States passport of Assistance to Greece and Turkey, 12 March 1947 Truman Presidential Museum and Library, 15 April 2003 Truman, Harry S. , Memoirs of Harry S. Truman, vol. 2. Garden City, Time, Inc. 1956. Woelfel, Scott, Interactive Maps, Cold War, CNN Interactive, April 1999 Oct 15, 2005 G. AppendixTruman DoctrineTruman Doctrine Ryan Hauppa A. Plan of Investigation The following questions will be in vestigated What were the events and decisions that led to the development of the Truman Doctrine? What was its effect on US Foreign Policy and its impact on Greece, Turkey and Europe? Research will be conducted concerning the Post World War II Treaties as Potsdam, Soviet Union aggression, and the Greek and Turkey Crisis. These events prompted the development of the Truman Doctrine the US foreign policy to contain the spread of Communism.Trumans 1947 Address that introduced the doctrine to the world, his own personal thoughts, and the support and criticism of the policy will be examined. The doctrine will be analyzed as to how it shaped future American policies and programs as the Marshall Plan and led to the collapse of the Soviet Union and the end of the Cold War over forty years later. (Word Count -143) B. Summary of Evidence World War II devastated Europe. Millions of people died. Many of those remaining were starving and in need of food and shelter since the farms and cities of many countries were destroyed.Billions of dollars were spent. Countries were nearly bankrupt. Europe was in economic, social, and political devastation. After the surrender of Germany in 1945, the United States, Great Britain, and the Soviet Union met first at Yalta and later at Potsdam in Germany. They met to resolve war reparations and boundaries of Germany. As part of the agreements, Germany was divided into East and West. The Eastern portion was controlled by the Soviet Union and the West by the United States, United Kingdom, and France. Berlin, the capital, which is inside Eastern Germany, was also divided by the four countries. Pemberton 50) In 1945 and 1946, Stalin, the leader of the Soviet Union, had been taking over new countries including Poland, Hungary, Romania, and Czechoslovakia by establishing governments favorable to him. (CNN Cold War Appendix Maps) The Soviet Union focused next on Greece and Turkey. In February of 1947, Great Britain informed the United States in a State Department Telegram that that they could no longer provide financial aid to the governments of Greece and Turkey since they did not have the money and resources.Both governments were being threatened by Communist insurgents. (Truman Library Telegram 1) Truman pledged that it must be the policy of the United States to support free peoples who are resisting attempted subjugation by armed minorities or outside pressures in a Address of the President of the United States in March of 1947. (Truman Address 1) The economic aid program was costly amounting to total of more than $400 million for the two countries to aid the pro-democracy governments and oppose the Communists. The policy was later called the Truman Doctrine.Congress was divided over the program. Democrats wanted to give diplomacy and the newly formed United Nations a chance while Republicans were isolationist and concerned that the program was too costly. Despite a divided Congress, the program was adopted since both eventually were more concerned over the spread of Communism in the region. The Cold War confrontation had begun. The United States and its principles of freedom, capitalism, and democracy were fighting philosophically and economically against Communism and the Soviet Union. Donovan 286) Truman and George Marshall, his Secretary of State, then prepared for even greater aid for the rest of Europe. Their objective was to rebuild Western Europe and prevent a Communism take over of the remaining free nations. The policy was called the Marshall Plan, the European Economic Recovery Program. Over $13 billion in aid was provided in 1947. (Truman Memoirs 111) The Cold War was expanded. Stalin tried to disrupt the United States and its allies in 1948 and 1949 by shutting down access to Berlin.Truman responded by airlifting supplies into the city until access as again. (Pemberton 102) Afterward, the North Atlantic Treaty Organization was formed in 1949 to defend Western Europe militarily agains t a Soviet invasion as response by the United States in the Cold War. The Soviet Union in turn allied the Eastern European nations under the Warsaw Pact. (Pemberton 104) The Berlin Wall, the symbol of the Cold War, was built in 1961 and later torn down in 1989 after many years of conflict. The Soviet Union ultimately collapsed in 1991. (Word Count 567) C.Evaluation of Sources The most important source in investigating the topic of the Truman Doctrine is President Trumans Memoirs. The actual 1947 Presidential Address Recommending for Assistance to Greece and Turkey and critical government documents as the State Department Telegrams for Greece, Turkey and the USSR are included. Truman gives his own personal viewpoints of what happened while he was President. The researcher can obtain a clear view from the president himself. From his writings, you can tell that Truman was a hard working, tell it like it is man.When he made a decision, he stuck with it and moved on. The decision to pro ceed with the Truman Doctrine and Marshall Plan was difficult and not very popular, but Truman did it because he thought it was the right thing to do. The limitation of the source is that it was written by Truman and may make him look too favorable. The other source most used was the book written by Robert Donovan, The Presidency of Harry Truman 1945-1958 Conflict & Crisis. Mr. Donovan was a journalist at the White House during the Truman presidency.He provided critical firsthand insights into the actual events through his notes and research from the actual participants. His research into the Truman Doctrine and Marshall Plan was more thorough and comprehensive than most of the other sources used that were cited in the research paper. Mr. Donovan provides an excellent historical perspective of the pros and cons of Trumans and his staffs decisions. The limitation of the source is that the book was written in 1977 so it does not include the perspective after the fall of the Berlin Wal l and the end of the Soviet Union and Communism in Europe. Word Count 285) D. Analysis Truman in his Memoirs describes his 1947 Address as follows This was, I believe, the turning point in Americas foreign policy, which now declared that wherever aggression, direct or indirect, threatened by peace, the security of the United States was involvedAfter I delivered the speech the world reaction proved that this approach had been the right one. Truman went on further to describe in other addresses the alternate ways of lifeOne way is based on the will of the majority, and is distinguished by free institutions, representative government, free elections, guarantees of individual liberty, freedom of speech and religion and freedom from political oppressionThe second way of life is based upon the will of the minority forcibly imposed upon the majority. It relies upon terror and oppression, a controlled press and radio, fixed elections and the suppression of personal freedoms. (106) Truman b elieves that the United States and its democratic way of life is better then the Soviet Union and its evil oppressive way of life.He wanted to make sure that the world understood his commitment by his strong language. The Communists should not quickly take over free countries and threaten the United States and its allies. His own divided Congress should beware of the past policies of isolationism and the hope that diplomacy and the United Nations could solve the crisis. The Soviet Union already had taken over the Eastern European countries in violation of the Yalta and Potsdam agreements. The Greece and Turkey crisis was critical to victory in the Cold War. If either Greece or Turkey fell to the Soviet Union, the other would follow.More nations would tumble as a row of falling dominoes extending Soviet domination to Europe, the Middle East oil fields, and Africa. (Hamby 391) (CNN Cold War Appendix Maps) Communism could have spread very quickly worldwide, but it did not. The Truman D octrine is the epitome of the containment of Communism. (Donovan 284) Greece, Turkey, Europe, and even Russia, the former Soviet Union, are currently free and democratic nations. Europe was in economic, political, and social devastation after World War II. Winston Churchill once declared, What is Europe now?It is a rubble-heap, a charnel house, a breeding ground of pestilence and hate. It was the perfect time for the Soviet Union to support Communism. (Goldman 66) At over $13 billion, it was aid on a much greater scale. The Truman Doctrine prompted the Marshall Plan. Truman in his Memoirs claimed that the plan was developed to do the following (1) Counter increasing pressure of Communist imperialism, and (2) Rebuild Europe. By rebuilding Europe, America would help to establish that healthy economic balance which is essential to the peace of the world. 111) Rebuilding Europe was not only a national security issue but also a national economic issue. At the end of World War II, the Un ited States was a major exporter. (Donovan 287) Without a strong Europe, the United States would likely have had a poor economy for many years because of lack of trade with Europe. Instead, the Truman Doctrine and Marshall Plan led to over fifty years of prosperity for Europe and the United States and the end of the Cold War. (Word Count 534) E. Conclusion With the Truman Doctrine, the United States entered a new era of foreign policy.Great Britain, France, and Germany were no longer the colonial powers. The United States was the most powerful free nation in the world. The balance of power changed. Over the next forty years, the United States and the Soviet Union fought a Cold War for a way of life. The United States spent trillions of dollars, but the spread of Communism in Europe was contained. The result would have never have occurred had it not been for Trumans bold move in Greece and Turkey. The cost was great, but the cost would have been greater if United States lost. Europe could have turned Communist.Instead, the Berlin Wall and the Soviet Union collapsed. Russia has enacted democratic reforms and a capitalist economy, which is ultimate proof of the success of the Truman Doctrine. (Word Count 148) F. List of Sources Donovan, Robert, The Presidency of Harry Truman 1945-1958 Conflict & Crisis, Columbia University of Missouri Press, 1977. Goldman, Eric Frederick, The Crucial Decade and After America, 1945-1960, New York Random House Inc. , 1956. Hamby, Alonzo L, A Life of Harry S. Truman, Man of the People, New York Oxford University Press Inc, 1995. Pemberton, William, Harry S.Truman, Fair Dealer & Cold Warrior, Boston Twayne Publishers, 1989. State Department, Summary of Telegrams for Greece, Poland and USSR, 25 February 1947, Truman Presidential Museum and Library, 15 April 2003 Truman, Harry S. , Address of the President of the United States Recommendation of Assistance to Greece and Turkey, 12 March 1947 Truman Presidential Museum and Library, 15 April 2003 Truman, Harry S. , Memoirs of Harry S. Truman, vol. 2. Garden City, Time, Inc. 1956. Woelfel, Scott, Interactive Maps, Cold War, CNN Interactive, April 1999 Oct 15, 2005 G. Appendix

It’s a Good Life vs Twilight Zone Essay

After comparing the novel Its A Good breeding by Jerome Bixby to the movie adaptation of Twilight Zone, I found some(prenominal) differences in each account. In Jerome Bixbys version, Anthony is a 3 socio-economic class honest-to-god little boy. He has purple eyes, and is a cr immerseure with superhuman powers. He toilet transform people and objects into anything that he wants, and he can read others minds. In this story, Anthony does not speak until the very block off. Anthony plays with a desert during the story. He is bored from playing with it, so he makes the rat eat itself.At the end of the story, Anthony turned Dan into a creepy object and wishes him into the cornfield. In the Twilight Zone, Anthony is portrayed as a six year old little boy. He has blue eyes, instead of purple. He is a junky with godlike powers, also. He controls and destroys the things around him whenever he wants. Anthony speaks passim the entire covering fire version. He creates a three-headed a nimal that he plays with during the Twilight Zone. At the end of the episode, Anthony turns Dan into a jack-in-the-box.Some structural differences between the two accounts is the dialogue of Anthony. In the story, he does not speak until the very end. In Twilight Zone, he talks throughout the entire episode. The screen version of Its A Good Life is more effective. It keeps the audiences attention, and it is more appealing. The story version does not hold the audiences attention throughout the entire story. The screen version includes more details and is more in-depth than Jerome Bixbys version.

Only the Strong Survive

January 17, 2013 Industry promulgate ship building (Neutral) Only the conceptive survive Offshore roams to drive addition The ship building intentness is in a situation similar to that of 2002. In 2013, plunging order volume and weak forward-looking building outlays ar supply intensifying competition. In 2002, shipbuilding deal outs rose beca exercise of an annex in orders, just then quickly fell on concerns all over weak new building hurts, which ca occasiond goods to stagnate. For a period in 2002, shipbuilders went into red. There is a big difference between the shipbuilding market of 2002 and 2013, however.In 2013, a few, study shipbuilders with an saltation in the construction of offshore whole kit and caboodles ar expanding order backlogs collect up to(p) to growing demand for offshore plants. We ring investments in offshore E&P projects provide continue to rise, as we distinguish oil damages volition remain high. We anticipate study shipbuilders allow foring offset sluggishness in the moneymaking(prenominal) watercrafts market with their offshore-plant c atomic number 18es. Daewoo Securities Co. , Ltd. Ki-jong Sung +822-768-3263 kijong. emailprotected com Ryan Kang +822-768-3065 ryan. emailprotected om Three study catalysts in 2013 1) emergence in new orders despite de crushed leathered market conditions. 2) Improved change play and balance sheets. 3) Growing competitive gap between shipbuilders referable to accelerated restructuring. Historic low P/B presents attractive valuations We deliver Korean shipbuilders provide be able to advance their competitive edge regardless of the depressed shipbuilding market. Although shipbuilding percents currently tack at a P/B of 1. 0x, we opine they learn the potential trade at a P/B of 1. 2x.We recomm wipeout Hyundai big(p) Industries (009540 KS/ taint/TP W280,000), and Samsung Heavy Industries (010one hundred forty KS/ pervert/TP W46,200) out of the large shipbuilders . We find Hyundai Mipo Dockyard (010620 KS/ acquire/TP W148,000) to be the best among shipbuilders that focus on mid-to- secondary watercrafts. We raise our target price on Samsung Heavy Industries by 5% to W46,200 to reflect its inactive earnings and unwavering order strike however, we downgrade our rating of Hanjin Heavy I&C (097230 KS/ pick out) from affair demoralise to Hold. Three study domestic shipbuildersE cash flow and role executing (Wbn) 10,000 Avg. ash flow of major shipbuilders (L) Avg. shargon price of major shipbuilders (R) (1/31/2005= deoxycytidine monophosphate) 1,000 6,000 800 600 2,000 400 -2,000 200 -6,000 05 06 07 08 09 10 11 12 13F 13 14 14F 0 source KDB Daewoo Securities inquiry Analysts who prepared this key are registered as question analysts in Korea but non in whatever other(a) jurisdiction, including the U. S. January 17, 2013 ship building auspicate 1. parvenu orders and newbuilding price for mercenaryized vessels (mnCGT) vitamin C New orders (L) Newbuilding price (R) 80 180 160 60 140 40 120 20 100 80 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13F 14F (1988=100) 200 showtime Clarkson, KDB Daewoo Securities explore condition 2. Three major domestic shipbuildersE order trend and aim (Wbn) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 01 02 03 04 05 06 07 08 09 10 11 12 13F shipbuilding Non-shipbuilding Source club data, KDB Daewoo Securities look externalise 3. KOSPI and shipbuilding g body politic index trend (1/1999=100) 1,000 KOSPI shipbuilding germinate index 800 600 400 200 0 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13F 13 14F 14 Source KDB Daewoo Securities seekKDB Daewoo Securities query 2 January 17, 2013 shipbuilding Three major catalysts in 2013 1. New orders for major Korean shipbuilders to increase sharply In 2013, we appear major Korean shipbuilders will see sharp increases in new orders. Despite intensifying competition, these companies have orient competitive advantages in th e construction of large commercial vessels and offshore plants. We counter demand for LNG common carriers will remain sound, and anticipate orders for mega-containerships will also increase.We expect the latter to be driven by small- and mid-sized shipping companies up(a) their scrap finished greater efficiency. We also expect shipbuilders will be force to take new orders at lower-than-normal prices because of the dearth of order backlogs for commercial vessels. We forecast the number of bids and orders for large offshore-plant construction projects to increase for each confederacy in 2013. In split upicular, we expect orders for certain high-priced vessels, including FPSO and LNG FPSO, to increase. 2.Improved cashflow and balance sheets Since 2009, shipbuilders have taken out more loans for more orders as the proportion of heavy-tail payments (characterized by small advance payments) has change magnitude. On a positive none, however, we expect shipbuilder loans to go do wn (thus improving cashflow) as these contracts are paid off toward late 2013. We count share prices will break (despite concerns about lower-priced orders) thanks to increasing orders, and better cashflow. office prices for shipbuilders will be influenced by cashflow.Despite intensifying market competition, we anticipate Hyundai Mipo Dockyard will take an increasing amount of orders, even though somewhat will be lower-priced. 3. Second anatomy of restructuring to further consolidate industry We anticipate the shipbuilding market will remain weak payable(p) to the global economic down moment, and the tightening of ship financing. We project the current, still-surviving shipbuilding companies will aggressively seek new orders to strengthen backlogs. We believe the winners of this second phase of restructuring will benefit significantly when the market find outs.Amid the current drop in vessel construction, the function of bulk carriers and tankers (out of total orders) has decreased significantly, while the percentage of megacontainerships and LNG carriers has increased. We expect these trends will continue in 2013. We also anticipate major Korean shipbuilders will be able to develop new types of vessels pomposity ameliorate efficiency, which will strengthen these companiesE competitiveness. Risk factors meshing at shipbuilders will non recover easily, overdue to orders at lower-than-normal prices and won appreciation. In order to secure backlogs, hipbuilders will need to take low price orders. another(prenominal) risk factor is won appreciation, but at current levels, we believe risks are limited, thanks to Korean shipbuildersE technological edge, and dollar denominated payment for bare-ass worldlys, which accounts for 40% of total raw material purchase. KDB Daewoo Securities research 3 January 17, 2013 shipbuilding Figure 4. Three major domestic shipbuildersE cash flow and share performance (Wbn) 10,000 Avg. cash flow of major shipbuilders (L) Avg. share price of major shipbuilders (R) (1/31/2005=100) 1,000 6,000 800 600 2,000 400 -2,000 00 -6,000 05 06 07 08 09 10 11 12 13F 13 14 14F 0 Source friendship data, KDB Daewoo Securities Research Figure 5. Korean and Chinese shipbuildersE restructuring (No. of shipuilders) 200 Korea China 160 197 120 -88. 3% 80 40 24 23 -66. 7% 8 0 2008 2012 Source Clarkson, press release, KDB Daewoo Securities Research Figure 6. Comparison of currency rates (10/2/2012=100) cv US$/W JPY100/W EUR/W RMB/W 100 95 90 85 80 10/12 11/12 12/12 1/13 Source KOSTAT, KDB Daewoo Securities Research KDB Daewoo Securities Research 4 January 17, 2013 Shipbuilding Investment strategy & valuationWe believe the P/B of KoreaEs top 3 shipbuilders, which is avocation at around 1. 0x, should rebound to 1. 2x, a level seen histori recollecty as the low, thanks to the aforementioned three major catalysts. In addition, the roe of shipbuildersE is projected to improve to 19%. And as most new orders are pass judg ment in 1H, shares are probable to show strong performance in the same period. The relative share performance of global shipbuilders has changed. Thanks to the rising proportion of offshore orders, Korean shipbuilders and Hyundai Mipo Dockyard are now grouped together with Keppl Corp. nd Sembcorp Marine (Singapore companies specialized in offshore plant). In light of the ongoing eurozone crisis and un durable global economy, shipbuilding shares are expected to trade between a P/B of 1. 0x1. 3x. Although we believe the shares have bottomed, we do not expect a pertinacious term recovery until new building prices rebound in earnest. We call forth accumulating the shares intimately a P/B of 1. 0x. Shipbuilding shares will apparent begin to recover full-swing from 2014, when the market starts to turnaround, a long with increased orders for commercial vessels, improved cashflow, and earnings recovery.Figure 7. major shipbuildersE ROE, P/B trends ( grocery cap, Wtr) 4. 0x (%) 50 3. 0x 40 90 60 2. 0x 30 20 30 1. 0x 10 0 05 07 09 11 13 13F 0 Source Bloomberg, KDB Daewoo Securities Research Figure 8. relation share performances of major shipbuilders (-1Y=100) cl 140 one hundred thirty 120 one hundred ten 100 90 80 70 60 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 HHI DSME HMD Guangzhou Shipyard Keppel Corp. SHI STX Offshore & Shipbuilding Rongsheng Heavy Sembcorp Marine Source Bloomberg, KDB Daewoo Securities Research KDB Daewoo Securities Research 5 January 17, 2013 Shipbuilding Figure 9.New order trends (US$bn) 30 25 20 15 10 5 0 03 04 05 06 07 08 09 10 11 12 HHI SHI HMD Figure 10. Order backlog trends (US$bn) 60 50 40 30 20 10 0 07 08 09 10 11 12 HHI SHI HMD Source fede symmetryn Data, KDB Daewoo Securities Research Source Company Data, KDB Daewoo Securities Research Figure 11. gross sales breakdown by business unit (Wtr) 70 60 50 40 30 20 10 0 10 HHI 11 10 SHI 11 Construction early(a) Refinery finance Green energy Electro electric systems Construction equipment Engine & machinery Industrial plant & engineering Offshore & engineering Shipbuilding Figure 12. Hyundai Heavy IndustriesE P/B trend Market cap,Wbn) 42,000 35,000 28,000 21,000 14,000 7,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13F 13 3. 0x 2. 5x 2. 0x 1. 5x 1. 0x Source Company Data, KDB Daewoo Securities Research Source KDB Daewoo Securities Research Figure 13. Samsung Heavy IndustriesE P/B trend (Market cap,Wbn) 14,000 12,000 10,000 8,000 1. 0x 6,000 4,000 2,000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 13F 2. 0x 6. 0x 4. 0x Figure 14. Hyundai Mipo DockyardEs P/B trend (Market cap,Wbn) 10,000 2. 5x 8,000 1. 5x 6,000 2. 0x 1. 5x 4,000 1. 0x 2,000 0. 5x 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 13F Source KDB Daewoo Securities ResearchSource KDB Daewoo Securities Research KDB Daewoo Securities Research 6 January 17, 2013 Shipbuilding Figure 15. globose new orders by vessel type (mnCGT) 25 LPG carrier LNG carrier containership 20 Bulker tank driver 15 Figure 16. Newbuilding prices by vessel type (US$000/TEU) 30 Containership (L) Tanker (R) Gas carrier (R) Bulker (R) (US$000/DWT) 3 20 2 10 10 5 1 0 03 04 05 06 07 08 09 10 11 12 0 04 05 06 07 08 09 10 11 12F 12 13F 13 0 Source Clarkson, KDB Daewoo Securities Research Source Clarkson, KDB Daewoo Securities Research Figure 17. ROE-P/B comparison (P/B ,x) 3. 0 Figure 18.EPS growth-P/E comparison (P/E, x) 20 Keppel 2. 0 Sembcorp Mitsubishi HHI 1. 0 Guangzhou Sumitomo Mitsui (ROE, %) 0. 0 0 5 10 15 20 HMD S HI 15 Keppel 10 S HI Sumitomo Sembcorp HHI 5 (EPS growth, %) 0 -40 -30 -20 -10 0 10 20 30 40 Source Bloomberg, KDB Daewoo Securities Research Source Bloomberg, KDB Daewoo Securities Research Figure 19. Global shipbuildersE share performances (-1Y=100) 160 HHI Mitsui SHI Guangzhou HMD Sembcorp CSSC Keppel Figure 20. KOSPI and shipbuilding stock index (index) 8,000 Shipbuilding stock index KOSPI 140 6,000 120 4,000 100 2,000 80 60 1/12 3/12 5/12 7/12 9/12 11/12 1/13 05 06 07 08 09 10 11 12 Source Thomson Reuters, KDB Daewoo Securities Research Source KDB Daewoo Securities Research KDB Daewoo Securities Research 7 January 17, 2013 Shipbuilding Hyundai Heavy Industries (009540 KS) Buy ( represent) Target toll (12M, W) 280,000 fortune toll (01/16/13, W) 227,500 judge issuance (%) 23. 1 EPS festering (13F, %) 17. 6 Market EPS suppuration (13F, %) 19. 1 P/E (13F, x) 8. 5 Market P/E (13F, x) 9. 0 KOSPI 1,977. 45 Market Cap (Wbn) 17,290 Shares Outstanding (mn) 76 Avg trade Volume (60D, 000) 229 Avg profession honour (60D, Wbn) 51 Dividend Yield (13F, %) 1. quit ice-cream float (%) 59. 3 52-Week commencement (W) 193,500 52-Week High (W) 346,500 Beta (12M, Daily prise of render) 1. 46 Price Return Volatility (12M Daily, %, SD) 2. 1 Foreign self-will (%) 19. 6 Major Shareholder(s) Mong-Jun Jung et al. (21. 31%) Treasury shares (19. 36%) NPS (5. 08%) Price Performance (%) 1M 6M 12M commanding -1. 7 -3. 8 -20. 7 Relative -0. 9 -12. 6 -27. 1 One step back for two steps forward ? ? ? Targeting orders of US$29. 7bn and revenues of W26. 9tr (non- consolidate) in 2013 Implemented a self-rescue plan for the first time in 40 years. Maintain Buy with TP of W280,000Maintain Buy with TP of W280,000 We maintain our Buy call on Hyundai Heavy Industries (HHI) with a target price of W280,000. HHI endangered weak share performance due to poor earnings and orders in 2012. However, we expect the come with to record robust orders in 2013, get aheaded by a pickup in the offshore/onshore plant market. The phonerEs earnings are anticipate to turn around in 2H13, while its cash flow should improve on commodious orders and an increase in heavy-tail payments. HHIEs shares are vocation at a 2013F P/E of 8. 5x and a P/B of 1. 0x, the lowest levels in the bon tonEs peer group.This tepid performance signals that weak 2012 orders and earnings results have been to the full reflected. However, HHI has strong investment merits in 2013, as it is proj ected to win massive orders. Investment summary 1) The guild exhibited poor orders across all business units last year, posting disappointing earnings results. In 2013, however, the company will be able to achieve its order target of US$29. 7bn in light of its strong determination to revamp its business structure. 2) The company is anticipated to receive massive offshore/onshore plant orders.In particular, the company will likely win orders for the Egina project (US$2. 5bn) and the Brass LNG project (US$3. 5bn) in 1Q. In addition, HHI is expected to bid for additional projects worth US$1-4bn indeed, we believe the company will be aggressive in its order-taking efforts. 3) Orders for merchant ships, including mega containerships, LNG carriers, and LNG FSRU, will likely increase markedly in light of their superior competitiveness. 4) Exports of construction equipment and ultra-high potential transformers should also increase on recoveries in the US and Chinese economies. ) The compan y has recently implemented a self-rescue plan for the first time in 40 years. While the number of applications for HHIEs early retirement plan (pushed finished at end-2012) missed expectations, the company has subsequently carried out structural crystallize measures. We expect the companyEs long-term restructuring efforts to positively affect earnings going forward. Share price 130 120 110 100 90 80 70 60 1/12 5/12 9/12 1/13 KOSPI allowance & military rating Metrics FY 12/10 12/11 12/12F 12/13F 12/14F tax (Wbn) 37,342 53,712 54,741 58,433 63,025 OP OP marge (Wbn) (%) 5,532 14. 8 4,536 8. 4 2,485 4. 5 3,331 5. 7 3,782 6. NP (Wbn) 4,154 2,559 1,729 2,033 2,449 EPS EBITDA FCF ROE P/E (Won) (Wbn) (Wbn) (%) (x) 54,652 6,326 88 34. 5 8. 1 33,671 5,473 -504 16. 7 7. 6 22,750 3,469 -2,260 10. 2 10. 6 26,750 4,320 2,005 11. 1 8. 5 32,218 4,768 2,297 12. 2 7. 1 P/B (x) 2. 5 1. 3 1. 1 1. 0 0. 9 EV/EBITDA (x) 6. 5 5. 3 8. 5 6. 2 5. 2 Notes both figures are establish on unify K-IFRS NP re fers to crystallize profit attributable to controlling interests Source Company data, KDB Daewoo Securities Research estimates Daewoo Securities Research 8 January 17, 2013 Shipbuilding Hyundai Heavy Industries (009540 KS/Buy/TP W280,000) all-encompassing Income line of reasoning (Summarized) Wbn) tax incomes Cost of Sales gross remuneration SG outgos operate simoleons (Adj) Operating network Non-Operating expediency net profit financial Income authorise agnize from Inv in Associates Pretax win Income revenue enhancement avail from Continuing Operations avail from Dis go along Operations net profit Profit Controlling fills Non-Controlling Interests join all-round(prenominal) Profit Controlling Interests Non-Controlling Interests EBITDA FCF (Free coin Flow) EBITDA brim (%) Operating Profit moulding (%) displace Profit mete (%) 12/11 53,712 46,784 6,927 2,392 4,536 4,536 -659 52 -148 3,876 1,133 2,743 0 2,743 2,559 184 2,617 2,498 118 5,473 -504 10. 8. 4 4. 8 12/12F 54,741 49,759 4,981 2,496 2,485 2,485 110 233 -240 2,595 766 1,829 0 1,829 1,729 100 1,568 1,458 110 3,469 -2,260 6. 3 4. 5 3. 2 12/13F 58,433 52,473 5,960 2,630 3,331 3,331 -448 248 -200 2,882 749 2,133 0 2,133 2,033 100 1,872 1,762 110 4,320 2,005 7. 4 5. 7 3. 5 12/14F 63,025 56,408 6,618 2,836 3,782 3,782 -338 188 -150 3,444 895 2,549 0 2,549 2,449 100 2,288 2,178 110 4,768 2,297 7. 6 6. 0 3. 9 averment of vertical stabilizerancial motive (Summarized) Wbn) downstairsway Assets hard currency and specie Equivalents AR & different receivables Inventories other(a) current Assets Non- real Assets Investments in Associates Property, Plant and Equipment intangible asset Assets Total Assets sure Liabilities AP & Other dues on the spur of the moment-run monetary Liabilities Other Current Liabilities Non-Current Liabilities Long-Term fiscal Liabilities Other Non-Current Liabilities Total Liabilities Controlling Interests Capital take Capital special Retained Ear nings Non-Controlling Interests Stockholders virtue 12/11 23,076 1,610 9,525 6,478 2,359 25,924 973 15,565 2,324 49,001 25,491 14,339 8,903 2,249 5,334 3,224 1,954 30,824 16,379 380 1,100 15,399 1,797 18,177 12/12F 25,628 1,888 10,237 6,897 2,737 24,553 916 15,706 2,290 50,181 23,183 11,605 9,060 2,518 7,460 5,550 1,755 30,643 17,624 380 1,100 16,894 1,915 19,538 12/13F 28,538 3,517 10,927 7,304 2,922 24,365 716 15,703 2,264 52,903 24,136 12,388 9,060 2,688 7,602 5,550 1,896 31,737 19,141 380 1,100 18,682 2,025 21,166 12/14F 30,153 3,469 11,786 7,878 3,151 24,277 566 15,700 2,240 54,430 24,320 13,361 8,060 2,899 6,901 4,550 2,195 31,221 21,074 380 1,100 20,885 2,135 23,208 capital Flows (Summarized) Wbn) gold Flows from Op Activities Net Profit Non- property Income and Expense derogation Amortization Others Chg in Working Capital Chg in AR & Other Receivables Chg in Inventories Chg in AP & Other Payables Income Tax compensable Cash Flows from Inv Activities Chg in PP&E Chg in I ntangible Assets Chg in pecuniary Assets Others Cash Flows from Fin Activities Chg in Financial Liabilities Chg in Equity Dividends paying Others maturation (Decrease) in Cash offshoot match Ending Balance 12/11 276 2,743 3,078 853 85 -860 -4,072 -178 -1,442 -364 -1,474 -888 -1,583 -67 -34 796 347 1,206 0 -411 -448 -269 1,879 1,610 12/12F -1,972 1,829 1,907 899 85 107 -4,572 -512 -453 -3,197 -1,136 -544 -1,074 -60 406 184 2,806 3,484 0 -245 -444 278 1,610 1,888 12/13F 3,082 2,133 2,187 903 86 50 -489 -691 -407 783 -749 -770 -900 -60 0 190 -683 0 0 -245 -438 1,628 1,888 3,517 12/14F 3,345 2,549 2,220 903 84 50 -528 -859 -574 973 -895 -738 -900 -60 0 222 -2,654 -2,000 0 -245 -409 -48 3,517 3,469 Forecasts/Valuations (Summarized)P/E (x) P/CF (x) P/B (x) EV/EBITDA (x) EPS (W) CFPS (W) bits per second (W) DPS (W) Payout ratio (%) Dividend Yield (%) Revenue suppuration (%) EBITDA Growth (%) Operating Profit Growth (%) EPS Growth (%) Accounts Receivable dollar volume (x) Inventory u pset (x) Accounts Payable Turnover (x) ROA (%) ROE (%) ROIC (%) liability to Equity ratio (%) Current ratio (%) Net Debt to Equity Ratio (%) Interest Coverage Ratio (x) 12/11 12/12F 12/13F 12/14F 7. 6 10. 6 8. 5 7. 1 5. 6 6. 8 5. 7 5. 0 1. 3 1. 1 1. 0 0. 9 5. 3 8. 5 6. 2 5. 2 33,671 22,750 26,750 32,218 46,009 35,699 39,772 45,203 203,367 220,183 240,492 266,237 4,000 0 4,000 4,000 9. 6 0. 0 12. 1 10. 0 1. 6 0. 0 1. 8 1. 8 43. 8 1. 9 6. 7. 9 -13. 5 -36. 6 24. 5 10. 4 -18. 0 -45. 2 34. 0 13. 5 -38. 4 -32. 4 17. 6 20. 4 5. 9 6. 0 6. 1 6. 1 9. 3 8. 2 8. 2 8. 3 4. 1 4. 8 5. 7 5. 8 5. 7 3. 7 4. 1 4. 8 16. 7 10. 2 11. 1 12. 2 17. 3 7. 8 10. 0 11. 2 169. 6 156. 8 150. 0 134. 5 90. 5 110. 6 118. 2 124. 0 40. 8 45. 3 34. 1 22. 7 15. 7 6. 0 7. 6 9. 2 Source Company data, KDB Daewoo Securities Research estimates KDB Daewoo Securities Research 9 January 17, 2013 Shipbuilding Samsung Heavy Industries (010140 KS) Buy (Maintain) Target Price (12M, W) 46,200 Share Price (01/16/13, W) 37,850 Expe cted Return (%) 22. 1 EPS Growth (13F, %) 0. 6 Market EPS Growth (13F, %) 19. 1 P/E (13F, x) 9. Market P/E (13F, x) 9. 0 KOSPI 1,977. 45 Market Cap (Wbn) 8,739 Shares Outstanding (mn) 231 Avg work Volume (60D, 000) 938 Avg trade Value (60D, Wbn) 34 Dividend Yield (13F, %) 0. 0 Free Float (%) 69. 5 52-Week Low (W) 31,650 52-Week High (W) 42,350 Beta (12M, Daily Rate of Return) 1. 57 Price Return Volatility (12M Daily, %, SD) 2. 3 Foreign Ownership (%) 32. 0 Major Shareholder(s) Samsung Electronics et al. (24. 42%) Treasury shares (6. 13%) Mirae Asset Global Investment (5. 05%) Price Performance (%) 1M 6M 12M Absolute -2. 7 4. 3 12. 3 Relative -1. 8 -4. 5 6. 0 Reliable again in 2013 ? ? ? 2013 orders and revenues forecast at US$14. 2bn and W14. tr Stable business operations and earnings to remain intact in 2013 Raise TP by 5% to W46,200 Maintain Buy Raise TP by 5% to W46,200 Maintain Buy We maintain our Buy call on Samsung Heavy Industries (SHI) and raise our target price 5% to W46, 200. In deriving our target price, we applied a 5% premium to the companyEs lowest P/B level since 2005 (1. 3x). We believe that the 5% premium is undemanding, as the company is expected to win solid orders and introduction stable earnings in 2013. We expect SHI to win massive orders of US$14. 2bn despite the morass in the global shipbuilding market, driven by the robust offshore plant market and the companyEs superior competitiveness.SHIEs shares are transaction at a 2013F P/E of 9. 4x and a P/B of 1. 3x. We think that SHI has strong investment merits in light of its competitive edge, stable earnings, robust growth potential, and cash flow improvement. Investment summary 1) home(prenominal) institutions are most optimistic on SHI among the three largest domestic shipbuilders. SHI has turn up its superior competitiveness in the offshore plant business, including FLNG and drillships. As such, the company has solid earnings relative to its competitors. 2) SHI is expanding into th e subsea business, and we believe that the company will be able to bolster its competitiveness in the segment rapidly. ) The commercial vessel unit, which exhibited a tepid performance last year, is likely to recover in 2013 thanks to 1) rising mega containership orders and 2) steady orders for LNG carriers and LNG FSRU. 4) SHI is expected to display the quick cash flow improvement in its peer group this year, sanction by 1) a rise in orders for both offshore plants and commercial vessels and 2) an increase in heavy-tail payments. As such, the company will be able to repay its debt and strengthen its financial structure. 5) SHIEs earnings should gradually increase on rising revenue contributions from the offshore plant unit. Share price 150 140 130 120 110 100 90 80 1/12 5/12 9/12 1/13 KOSPI Earnings & Valuation Metrics FY 12/10 12/11 12/12F 12/13F 12/14F Revenue (Wbn) 13,146 13,392 14,875 14,980 15,751 OP OP Margin NP (Wbn) (%) (Wbn) 1,433 10. 1,000 1,160 8. 7 851 1,226 8. 2 929 1,198 8. 0 934 1,355 8. 6 1,015 EPS EBITDA FCF ROE (Won) (Wbn) (Wbn) (%) 4,330 1,504 598 28. 7 3,685 1,455 1,556 19. 4 4,021 1,551 282 18. 4 4,044 1,514 931 15. 8 4,396 1,667 978 14. 9 P/E (x) 9. 5 7. 6 9. 6 9. 4 8. 6 P/B (x) 2. 1 1. 2 1. 5 1. 3 1. 1 EV/EBITDA (x) 8. 2 5. 4 6. 1 5. 5 4. 5 Notes All figures are based on consolidated K-IFRS NP refers to net profit attributable to controlling interests Source Company data, KDB Daewoo Securities Research estimates Daewoo Securities Research 10 January 17, 2013 Shipbuilding Samsung Heavy Industries (010140 KS/Buy/TP W46,200) Comprehensive Income assertion (Summarized) Wbn) Revenues Cost of Sales Gross Profit SG Expenses Operating Profit (Adj) Operating Profit Non-Operating Profit Net Financial Income Net Gain from Inv in Associates Pretax Profit Income Tax Profit from Continuing Operations Profit from Discontinued Operations Net Profit Controlling Interests Non-Controlling Interests Total Comprehensive Profit Controlling Interests Non-Co ntrolling Interests EBITDA FCF (Free Cash Flow) EBITDA Margin (%) Operating Profit Margin (%) Net Profit Margin (%) 12/11 13,392 11,628 1,763 681 1,083 1,160 -10 -25 -32 1,150 299 851 0 851 851 0 616 616 0 1,455 1,556 10. 9 8. 7 6. 4 12/12F 14,875 12,867 2,008 766 1,242 1,226 -30 -34 0 1,196 267 929 0 929 929 0 920 920 0 1,551 282 10. 4 8. 2 6. 2 12/13F 14,980 13,017 1,962 764 1,198 1,198 4 -44 0 1,202 268 934 0 934 934 0 925 925 0 1,514 931 10. 1 8. 0 6. 2 12/14F 15,751 13,594 2,158 803 1,355 1,355 -19 -51 0 1,336 321 1,015 0 1,015 1,015 0 1,006 1,006 0 1,667 978 10. 6 8. 6 6. 5 Statement of Financial Condition (Summarized) Wbn) Current Assets Cash and Cash Equivalents AR & Other Receivables Inventories Other Current Assets Non-Current Assets Investments in Associates Property, Plant and Equipment Intangible Assets Total Assets Current Liabilities AP & Other Payables Short-Term Financial Liabilities Other Current Liabilities Non-Current Liabilities Long-Term Financial Liabilities O ther Non-Current Liabilities Total Liabilities Controlling Interests Capital Stock Capital redundant Retained Earnings Non-Controlling Interests Stockholders Equity 12/11 9,617 806 4,132 540 1,905 6,797 0 5,408 86 16,414 10,539 4,425 3,232 2,883 1,231 1,004 88 11,770 4,644 1,155 423 3,610 0 4,644 12/12F 9,112 1,115 3,793 550 1,711 6,316 5 5,434 38 15,428 7,758 3,882 1,570 2,306 2,213 1,881 138 9,971 5,457 1,155 423 4,430 0 5,457 12/13F 9,229 1,264 3,820 554 1,648 6,372 5 5,506 21 15,601 7,301 3,910 1,070 2,322 1,918 1,481 188 9,219 6,382 1,155 423 5,364 0 6,382 12/14F 9,720 1,445 4,017 583 1,733 6,439 5 5,573 13 16,159 7,223 4,111 670 2,442 1,656 1,081 271 8,878 7,280 1,155 423 6,272 0 7,281 Cash Flows (Summarized) Wbn) Cash Flows from Op Activities Net Profit Non-Cash Income and Expense Depreciation Amortization Others Chg in Working Capital Chg in AR & Other Receivables Chg in Inventories Chg in AP & Other Payables Income Tax Paid Cash Flows from Inv Activities Chg in PP&E Chg in Intangible Assets Chg in Financial Assets Others Cash Flows from Fin Activities Chg in Financial Liabilities Chg in Equity Dividends Paid Others Increase (Decrease) in Cash Beginning Balance Ending Balance 12/11 1,341 1,150 189 294 78 75 549 1,284 150 164 -548 332 -242 -1 309 265 -1,306 -1,090 1 -108 -109 359 447 806 12/12F 351 1,131 558 297 11 -268 -1,061 34 39 -541 -276 -274 -368 -1 3 92 240 416 1 -108 -68 309 806 1,115 12/13F 1,376 934 580 299 17 -50 130 -27 -4 27 -268 -310 -370 -1 0 61 -917 -900 0 -108 -17 149 1,115 1,264 12/14F 1,408 1,015 651 302 10 -50 62 -197 -29 201 -321 -307 -370 -1 0 64 -921 -800 0 -108 -13 181 1,264 1,445 Forecasts/Valuations (Summarized)P/E (x) P/CF (x) P/B (x) EV/EBITDA (x) EPS (W) CFPS (W) BPS (W) DPS (W) Payout ratio (%) Dividend Yield (%) Revenue Growth (%) EBITDA Growth (%) Operating Profit Growth (%) EPS Growth (%) Accounts Receivable Turnover (x) Inventory Turnover (x) Accounts Payable Turnover (x) ROA (%) ROE (%) ROIC (%) Liability to Equity Ra tio (%) Current Ratio (%) Net Debt to Equity Ratio (%) Interest Coverage Ratio (x) 12/11 7. 6 5. 3 1. 2 5. 4 3,685 5,296 22,582 500 12. 7 1. 8 1. 9 -3. 3 -19. 0 -14. 9 2. 8 23. 3 3. 2 4. 8 19. 4 15. 5 253. 4 91. 3 25. 8 57. 5 12/12F 9. 6 7. 2 1. 5 6. 1 4,021 5,358 26,307 0 0. 0 0. 0 11. 1 6. 6 5. 7 9. 1 3. 8 27. 3 3. 7 5. 8 18. 4 18. 9 182. 7 117. 5 7. 2 57. 9 12/13F 9. 7. 0 1. 3 5. 5 4,044 5,410 30,381 0 11. 6 0. 0 0. 7 -2. 4 -2. 2 0. 6 4. 0 27. 1 4. 0 6. 0 15. 8 16. 9 144. 5 126. 4 -10. 3 69. 5 12/14F 8. 6 6. 6 1. 1 4. 5 4,396 5,747 34,309 0 0. 0 0. 0 5. 2 10. 1 13. 0 8. 7 4. 1 27. 7 4. 1 6. 4 14. 9 19. 1 121. 9 134. 6 -22. 5 106. 2 Source Company data, KDB Daewoo Securities Research estimates KDB Daewoo Securities Research 11 January 17, 2013 Shipbuilding Hyundai Mipo Dockyard (010620 KS) Buy (Maintain) Target Price (12M, W) 148,000 Share Price (01/16/13, W) 125,000 Expected Return (%) 18. 4 EPS Growth (13F, %) 45. 2 Market EPS Growth (13F, %) 19. 1 P/E (13F, x) 13. 1 Market P/E (13F, x) 9. 0 KOSPI 1,977. 5 Market Cap (Wbn) 2,500 Shares Outstanding (mn) 20 Avg Trading Volume (60D, 000) 121 Avg Trading Value (60D, Wbn) 14 Dividend Yield (13F, %) 1. 6 Free Float (%) 51. 6 52-Week Low (W) 102,500 52-Week High (W) 167,000 Beta (12M, Daily Rate of Return) 1. 58 Price Return Volatility (12M Daily, %, SD) 2. 4 Foreign Ownership (%) 18. 1 Major Shareholder(s) Hyundai Samho Heavy Industries et al. (46. 4%) NPS (7. 38%) Price Performance (%) Absolute Relative Shining in the dark ? ? ? 2013 target US$3. 2bn in orders and W3. 6tr in revenues Stands to benefit most from industry restructuring Maintain Buy and TP of W148,000 Maintain Buy and TP of W148,000We maintain our Buy recommendation on Hyundai Mipo Dockyard (HMD) and our target price of W148,000. We expect HMD to maintain stable growth in orders and earnings, despite the global economic slowdown and eurozone fiscal crisis. Indeed, among small- to mid-sized shipbuilders, HMD is the company most favored by shipowner s. Amid an expected further slowdown in the shipbuilding market, the company is anticipated to display distinguished share performance in 2013. Given HMDEs cash holdings of W450bn and the apprize of its stake in Hyundai Heavy Industries (W1. 4tr 8. 0% of big shares), we believe that the companiesE shares are currently undervalued (trading at a 2013F P/E of 13. 1x and a P/B of 0. 9x). Investment points ) We believe HMD will continue to display outstanding performance among small- to mid-sized Korean shipbuilders in 2013. Even amid intensifying competition due to limited orders and low ship prices, the company is expected to enjoy stable orders, earnings, and cash flow this year. 2) HMDEs competitiveness comes from its productivity, financing capability, and the quality of its products. It also boasts strong cost competitiveness as the company purchases raw materials at comparatively lower prices from the Hyundai Heavy Industries Group. 3) In the small- to mid-sized merchant ship ma rket, the product carrier (P/C) segment, in which HMD has the strongest competitive edge, is expected to be relatively robust in 2013. ) If the shipbuilding market remains in a slump for a protracted period of time, HMD should be able to widen its gap with its peers. The company stands to benefit most from a second industry restructuring that is expected to end sometime in 2014. 1M 2. 5 3. 3 6M 6. 4 -2. 4 12M 11. 6 5. 3 Share price 160 150 140 130 120 110 100 90 80 1/12 5/12 9/12 1/13 KOSPI Earnings & Valuation Metrics FY 12/10 12/11 12/12F 12/13F 12/14F Revenue OP OP Margin NP EPS EBITDA FCF ROE P/E (Wbn) (Wbn) (%) (Wbn) (Won) (Wbn) (Wbn) (%) (x) 4,138 683 16. 5 493 24,629 741 431 14. 7 9. 1 4,624 378 8. 2 200 9,992 441 -633 5. 5 11. 2 4,404 126 2. 9 131 6,556 192 -563 4. 3 19. 4 4,624 191 4. 1 190 9,518 256 397 6. 4 13. 1 4,855 230 4. 235 11,770 293 416 7. 4 10. 6 P/B EV/EBITDA (x) (x) 1. 2 4. 4 0. 8 4. 2 1. 0 13. 8 0. 9 8. 6 0. 8 6. 0 Notes All figures are based on consolidated K -IFRS NP refers to net profit attributable to controlling interests Source Company data, KDB Daewoo Securities Research estimates Daewoo Securities Research 12 January 17, 2013 Shipbuilding Hyundai Mipo Dockyard (010620 KS/Buy/TP W148,000) Comprehensive Income Statement (Summarized) (Wbn) Revenues Cost of Sales Gross Profit SG Expenses Operating Profit (Adj) Operating Profit Non-Operating Profit Net Financial Income Net Gain from Inv in Associates Pretax Profit Income Tax Profit from ContinuingOperations Profit from Discontinued Operations Net Profit Controlling Interests Non-Controlling Interests Total Comprehensive Profit Controlling Interests Non-Controlling Interests EBITDA FCF (Free Cash Flow) EBITDA Margin (%) Operating Profit Margin (%) Net Profit Margin (%) 12/11 4,624 3,975 649 272 378 378 -63 -24 0 315 112 202 0 202 200 3 -821 -823 2 441 -633 9. 5 8. 2 4. 3 12/12F 4,404 4,002 402 276 126 126 41 -8 -2 167 41 126 0 126 131 -5 -274 -265 -9 192 -563 4. 4 2. 9 3. 0 12/13F 4,624 4,143 481 290 191 191 52 -9 -2 243 58 185 0 185 190 -5 185 194 -9 256 397 5. 5 4. 1 4. 1 12/14F 4,855 4,321 534 304 230 230 73 -10 -2 303 73 230 0 230 235 -5 230 239 -9 293 416 6. 0 4. 7 4. 9 Statement of Financial Condition (Summarized) Wbn) Current Assets Cash and Cash Equivalents AR & Other Receivables Inventories Other Current Assets Non-Current Assets Investments in Associates Property, Plant and Equipment Intangible Assets Total Assets Current Liabilities AP & Other Payables Short-Term Financial Liabilities Other Current Liabilities Non-Current Liabilities Long-Term Financial Liabilities Other Non-Current Liabilities Total Liabilities Controlling Interests Capital Stock Capital Surplus Retained Earnings Non-Controlling Interests Stockholders Equity 12/11 4,134 564 975 283 427 3,691 34 889 340 7,825 3,914 1,774 1,779 361 502 56 420 4,416 3,217 100 91 2,081 191 3,409 12/12F 4,994 418 1,814 231 352 3,632 35 928 341 8,626 4,499 1,850 2,253 396 999 191 781 5,498 2,912 100 90 2,172 215 3,127 12/13F 4,919 468 1,568 243 462 3,675 33 964 344 8,593 4,274 1,905 1,953 416 1,046 141 878 5,320 3,067 100 90 2,323 206 3,273 12/14F 4,878 532 1,427 255 486 3,650 31 933 347 8,527 4,071 1,991 1,643 437 993 101 865 5,063 3,267 100 90 2,519 197 3,464 Cash Flows (Summarized) Wbn) Cash Flows from Op Activities Net Profit Non-Cash Income and Expense Depreciation Amortization Others Chg in Working Capital Chg in AR & Other Receivables Chg in Inventories Chg in AP & Other Payables Income Tax Paid Cash Flows from Inv Activities Chg in PP&E Chg in Intangible Assets Chg in Financial Assets Others Cash Flows from Fin Activities Chg in Financial Liabilities Chg in Equity Dividends Paid Others Increase (Decrease) in Cash Beginning Balance Ending Balance 12/11 -697 202 311 62 1 -213 -1,075 -190 -54 -593 -135 441 -100 -4 400 145 93 245 0 -93 -59 -168 732 564 12/12F -816 126 78 65 2 -12 -969 -220 52 66 -50 150 -112 -4 79 186 516 601 0 -39 -46 -146 564 418 12/13F 489 185 71 64 1 10 291 247 -12 56 -58 -47 -100 -4 0 57 -392 -350 0 -39 -2 50 418 468 12/14F 432 230 62 62 1 30 212 140 -12 86 -73 23 -30 -4 0 57 -391 -350 0 -39 -2 64 468 532 Forecasts/Valuations (Summarized)P/E (x) P/CF (x) P/B (x) EV/EBITDA (x) EPS (W) CFPS (W) BPS (W) DPS (W) Payout ratio (%) Dividend Yield (%) Revenue Growth (%) EBITDA Growth (%) Operating Profit Growth (%) EPS Growth (%) Accounts Receivable Turnover (x) Inventory Turnover (x) Accounts Payable Turnover (x) ROA (%) ROE (%) ROIC (%) Liability to Equity Ratio (%) Current Ratio (%) Net Debt to Equity Ratio (%) Interest Coverage Ratio (x) 12/11 12/12F 12/13F 12/14F 11. 2 19. 4 13. 1 10. 6 8. 5 12. 9 9. 8 8. 4 0. 8 1. 0 0. 9 0. 8 4. 2 13. 8 8. 6 6. 0 9,992 6,556 9,518 11,770 13,153 9,869 12,760 14,910 146,152 130,821 138,428 148,290 2,000 2,000 2,000 2,000 19. 6 29. 9 20. 6 16. 6 1. 8 1. 6 1. 6 1. 6 11. 7 -4. 8 5. 0 5. 0 -40. 5 -56. 5 33. 4 14. 3 -44. 7 -66. 8 52. 2 20. 3 -59. 4 -34. 4 45. 2 23. 7 6. 1 4. 2 3. 9 5. 0 18. 1 17. 1 19. 5 19. 5 2. 5 3. 2 3. 8 3. 8 2. 3 1. 5 2. 2 2. 7 5. 5 4. 3 6. 4 7. 4 53. 8 8. 1 10. 7 15. 6 129. 6 175. 8 162. 5 146. 2 105. 6 111. 0 115. 1 119. 8 -18. 0 -4. 9 -16. 9 -27. 9 689. 5 45. 6 78. 1 109. 7Source Company data, KDB Daewoo Securities Research estimates KDB Daewoo Securities Research 13 January 17, 2013 Shipbuilding Hanjin Heavy I&C (097230 KS) Hold (Downgrade) Target Price (12M, W) Share Price (01/16/13, W) 10,000 Expected Return (%) 0. 0 EPS Growth (13F, %) RR Market EPS Growth (13F, %) 19. 1 P/E (13F, x) Market P/E (13F, x) 9. 0 KOSPI 1,977. 45 Market Cap (Wbn) 483 Shares Outstanding (mn) 48 Avg Trading Volume (60D, 000) 310 Avg Trading Value (60D, Wbn) 4 Dividend Yield (13F, %) 0. 0 Free Float (%) 62. 6 52-Week Low (W) 10,000 52-Week High (W) 23,850 Beta (12M, Daily Rate of Return) 1. 43 Price Return Volatility (12M Daily, %, SD) 2. 7 Foreign Ownership (%) 9. Major Shareholder(s) Hanjin Heavy I Holdings et al (37. 38%) KB Asset Management (5. 13%) Price Performance (%) 1M Absolute -23. 4 Relative -22. 5 Unlikely to brave out market slump ? ? ? Earnings unlikely to recover due to shipbuilding market slump and protracted strike Cash flow to swing due to excessive debt and weak orders Downgrade to Hold Downgrade to Hold We lower our rating on Hanjin Heavy I (HHIC) to Hold from Trading Buy. We believe that the companyEs earnings and cash flow will not improve for the time being, given its tepid order performance amid the sluggish commercial vessel market, and the suspension of its Youngdo shipyard due to a strike.Although the company has recently embarked on the development of an industrial site near the Incheon port, the project is unlikely to boost operating profit markedly due to high capital requirements and increased interest expenses. As such, the companyEs shares are unlikely to recover in the near term, in our view Although the companyEs shares are trading at a 2013F P/B of just 0. 4x, we believe that their investment merits are low. Indeed, efforts to dispose of prop amid a lackluster real estate market should meet with fractiousy, and continued net losses and excessive interest expenses should leave cash flow from operations uncertain. Risks ) The commercial vessel unit at the Youngdo shipyard is unlikely to recover. The slump in the global commercial vessel market is leading to a fall in orders, while intensifying competition among shipbuilders are command prompt shipowners to demand discounts on ship prices. . 2) There is a growing misfortune that the Subic shipyard will take new orders, as it possesses strong price competitiveness. However, as it is difficult to build highend vessels at the Subic shipyard, the companyEs earnings are unlikely to recover in the near future. 3) There are many labor-management issues yet to be resolved, including one related to employees who are currently on leave due to a lack of work. ) Although HHIC is meeting its short-term capital needs through real estate disposal, the company will like ly find it difficult to sell large-scale real estate assets due to the real estate market slump. Indeed, the company needs more capital to engage in the development project near the Incheon port. Given that the project is not progressing rapidly, uncertainties over the companyEs cash flow will likely persist in the long term. 5) HHIC holds massive debt (W2. 8tr). Proceeds from the companyEs planned rights offering (estimated to at W180bn) should be hardly equivalent to its annual interest expenses. 6M -26. 7 -35. 5 12M -47. 9 -54. 3 Share price 120 110 100 90 80 70 60 50 40 1/12 5/12 9/12 1/13 KOSPI Earnings & Valuation MetricsFY 12/10 12/11 12/12F 12/13F 12/14F Revenue OP OP Margin NP (Wbn) (Wbn) (%) (Wbn) 3,168 120 3. 8 -72 2,892 108 3. 7 -97 2,547 63 2. 5 -103 2,795 76 2. 7 -10 3,071 83 2. 7 -32 EPS EBITDA FCF ROE (Won) (Wbn) (Wbn) (%) -1,496 312 487 -3. 6 -2,006 200 -224 -5. 1 -2,123 148 243 -5. 7 -158 195 182 -0. 6 -466 184 146 -1. 8 P/E (x) P/B (x) 1. 0 0. 5 0. 4 0. 4 0. 4 EV /EBITDA (x) 14. 5 19. 9 24. 0 16. 9 18. 0 Notes All figures are based on consolidated K-IFRS NP refers to net profit attributable to controlling interests Source Company data, KDB Daewoo Securities Research estimates Daewoo Securities Research 14 January 17, 2013 Shipbuilding Hanjin Heavy I (097230 KS/Hold) Comprehensive Income Statement (Summarized) Wbn) Revenues Cost of Sales Gross Profit SG Expenses Operating Profit (Adj) Operating Profit Non-Operating Profit Net Financial Income Net Gain from Inv in Associates Pretax Profit Income Tax Profit from Continuing Operations Profit from Discontinued Operations Net Profit Controlling Interests Non-Controlling Interests Total Comprehensive Profit Controlling Interests Non-Controlling Interests EBITDA FCF (Free Cash Flow) EBITDA Margin (%) Operating Profit Margin (%) Net Profit Margin (%) 12/11 2,892 2,665 227 140 87 108 -190 171 -2 -82 15 -97 0 -97 -97 0 -90 -90 0 200 -224 6. 9 3. 7 -3. 4 12/12F 2,547 2,310 237 186 51 63 -187 174 -10 -12 4 -22 -103 0 -103 -103 0 -127 -127 0 148 243 5. 8 2. 5 -4. 0 12/13F 2,795 2,516 280 204 76 76 -89 159 -5 -13 -3 -11 0 -11 -10 0 -35 -34 0 195 182 7. 0 2. 7 -0. 4 12/14F 3,071 2,764 307 224 83 83 -125 150 0 -42 -9 -33 0 -33 -32 0 -57 -56 0 184 146 6. 0 2. 7 -1. 1 Statement of Financial Condition (Summarized) Wbn) Current Assets Cash and Cash Equivalents AR & Other Receivables Inventories Other Current Assets Non-Current Assets Investments in Associates Property, Plant and Equipment Intangible Assets Total Assets Current Liabilities AP & Other Payables Short-Term Financial Liabilities Other Current Liabilities Non-Current Liabilities Long-Term Financial Liabilities Other Non-Current Liabilities Total Liabilities Controlling Interests Capital Stock Capital Surplus Retained Earnings Non-Controlling Interests Stockholders Equity 12/11 2,392 854 917 361 237 4,645 66 3,144 89 7,037 2,483 811 1,603 69 2,687 2,317 329 5,170 1,864 241 644 814 2 1,867 12/12F 2,058 686 868 280 209 4,535 81 2,98 0 89 6,592 2,286 802 1,421 63 2,566 2,177 336 4,852 1,738 241 644 712 2 1,740 12/13F 2,077 617 925 294 228 4,487 76 2,871 89 6,564 2,384 895 1,421 69 2,369 1,977 338 4,753 1,809 346 644 701 2 1,810 12/14F 2,025 422 1,016 322 250 4,412 76 2,780 89 6,437 2,479 983 1,421 76 2,204 1,777 373 4,683 1,752 346 644 669 2 1,754 Cash Flows (Summarized) Wbn) Cash Flows from Op Activities Net Profit Non-Cash Income and Expense Depreciation Amortization Others Chg in Working Capital Chg in AR & Other Receivables Chg in Inventories Chg in AP & Other Payables Income Tax Paid Cash Flows from Inv Activities Chg in PP&E Chg in Intangible Assets Chg in Financial Assets Others Cash Flows from Fin Activities Chg in Financial Liabilities Chg in Equity Dividends Paid Others Increase (Decrease) in Cash Beginning Balance Ending Balance 12/11 -228 -97 246 113 0 44 -379 -192 -42 -150 2 68 -15 0 -43 126 -106 91 1 0 -198 -262 1,116 854 12/12F 316 -103 265 97 0 16 131 23 77 33 22 9 -21 0 -14 44 -488 -297 0 0 -192 -168 854 686 12/13F 194 -11 206 120 0 25 -4 -57 -13 92 3 11 -10 0 0 21 -275 -200 105 0 -180 -70 686 617 12/14F 165 -33 216 101 0 25 -28 -91 -29 88 9 10 -10 0 0 20 -370 -200 0 0 -170 -194 617 422 Forecasts/Valuations (Summarized)P/E (x) P/CF (x) P/B (x) EV/EBITDA (x) EPS (W) CFPS (W) BPS (W) DPS (W) Payout ratio (%) Dividend Yield (%) Revenue Growth (%) EBITDA Growth (%) Operating Profit Growth (%) EPS Growth (%) Accounts Receivable Turnover (x) Inventory Turnover (x) Accounts Payable Turnover (x) ROA (%) ROE (%) ROIC (%) Liability to Equity Ratio (%) Current Ratio (%) Net Debt to Equity Ratio (%) Interest Coverage Ratio (x) 12/11 57. 4 0. 5 19. 9 -2,006 323 36,806 0 0. 0 0. 0 -8. 7 -35. 9 -9. 8 RR 3. 3 8. 9 3. 2 -1. 3 -5. 1 2. 4 276. 9 96. 3 163. 0 0. 5 12/12F -112. 3 0. 4 24. 0 -2,123 -111 34,182 0 0. 0 0. 0 -11. 9 -25. 9 -41. 8 RR 3. 3 8. 0 3. 9 -1. 5 -5. 7 1. 4 278. 9 90. 0 166. 5 0. 3 12/13F 5. 9 0. 4 16. 9 -158 1,691 24,843 0 0. 0 0. 0 9. 8 31. 8 20. 1 RR 3. 6 9. 8 4. 1 -0. 2 -0. 6 2. 1 262. 6 87. 1 152. 8 0. 4 12/14F 10. 1 0. 4 18. 0 -466 989 24,030 0 0. 0 0. 0 9. 9 -5. 8 9. 9 RR 3. 6 10. 0 4. 0 -0. 5 -1. 8 2. 4 267. 0 81. 7 157. 4 0. 5 Source Company data, KDB Daewoo Securities Research estimates KDB Daewoo Securities Research 15January 17, 2013 Shipbuilding Important Disclosures & Disclaimers Disclosures As of the radical date, Daewoo Securities Co. , Ltd. has acted as a liquidity provider for equity-linked warrants backed by shares of Hyundai Heavy Industries and Samsung Heavy Industries as an underlying asset, and other than this, Daewoo Securities has no other special interests in the covered companies. As of the payoff date, Daewoo Securities Co. , Ltd. has been acting as a financial advisor to Hyundai Mipo Dockyard for its treasury stock trust, and other than this, Daewoo Securities has no other special interests in the companies covered in this cross.As of the publication date, Daewoo Securities Co. , Ltd. issued equity-linked warrants with Hyundai Heavy Industries and Samsung Heavy Industries as an underlying asset, and other than this, Daewoo Securities has no other special interests in the covered companies. Stock Ratings Buy Trading Buy Hold Sell Relative performance of 20% or greater Relative performance of 10% or greater, but with excitableness Relative performance of -10% and 10% Relative performance of -10% Industry Ratings gravid Neutral Underweight Fundamentals are favorable or improving Fundamentals are steady without any material changes Fundamentals are unfavorable or worsening Ratings and Target Price History (Share price (-), Target price (-), Not covered (), Buy (), Trading Buy (), Hold (? ), Sell (? )) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at Daewoo Securities, we whitethorn call a trading opportunity in case there is a technical or short-term material development. * The targ et price was determined by the research analyst through valuation methods discussed in this traverse, in part based on the analystEs estimate of future earnings. The achievement of the target price whitethorn be impeded by risks related to the pillow slip securities and companies, as soundly as general market and economic conditions. W) 800,000 600,000 400,000 200,000 0 1/11 7/11 1/12 7/12 1/13 Hyundai Heavy Industries (W) 60,000 50,000 40,000 30,000 20,000 10,000 0 1/11 7/11 1/12 7/12 1/13 Samsung Heavy Industries (W) 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 1/11 7/11 1/12 7/12 1/13 Hyundai Mipo Dockyard (W) 50,000 40,000 30,000 20,000 10,000 0 1/11 7/11 1/12 7/12 1/13 Hanjin Heavy I&C Analyst Certification The research analysts who prepared this traverse (the Analysts) are registered with the Korea Financial Investment Association and are subordinate to Korean securities regulations. They are neither registered as research analysts in any other jurisdiction no r dependent to the laws and regulations thus.Opinions expressed in this publication about the subject securities and companies accurately reflect the somebodyal views of the Analysts primarily responsible for this spread over. Daewoo Securities Co. , Ltd. policy prohibits its Analysts and appendages of their households from owning securities of any company in the AnalystEs area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies. Except as other specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this delineate.No part of the compensation of the Analysts was, is, or will be outright or indirectly related to the specific recommendations or views contained in this report but, like all employees of Daewoo Securities, the Analysts receive compensation that is impacted by overal l firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or Daewoo Securities Co. , Ltd. except as otherwise stated herein. Disclaimers This report is published by Daewoo Securities Co. , Ltd. (Daewoo), a broker-dealer registered in the nation of Korea and a member of the Korea re-sentencing. Information and pinions contained herein have been compiled from sources believed to be legitimate and in good faith, but such information has not been singly verified and Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any rendering into English from the Korean language. If this report is an English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising from the use hereof. This report is for general information purposes only and it is not and should not be construed as an offer or a solicitation of an offer to kernel transactions in any securities or other financial instruments.The intend recipient roles of this report are sophisticated institutional investors who have substantial fellowship of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject Daewoo and its affiliates to registration or licensing requirements in any jurisdiction should receive or make any use hereof. Information and opinions contai ned herein are subject to change without notice and no part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior(prenominal) written consent of Daewoo. Daewoo, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents.Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. The price and value of the investments referred to in this report and the income from them may go down as well as up, and investors ma y realize losses on any investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Daewoo Securities Research 16 January 17, 2013 Shipbuilding Distribution United Kingdom This report is being distributed by Daewoo Securities (Europe) Ltd. n the United Kingdom only to (i) investment professionals falling at bottom article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order), and (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling at heart Article 49(2)(A) to (E) of the Order (all such persons together being referred to as applicable Persons). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents. United States This report is distributed in the U. S. by Daewoo Securities (America) Inc. , a member of FINRA/SIPC, a nd is only intended for major institutional investors as defined in Rule 15a-6(b)(4) under the U. S. Securities Exchange Act of 1934. All U. 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The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional investors within the meaning of Part I of instrument 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person.All Other Jurisdictions Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Daewoo or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Daewoo and its affiliates to any registration or licensing requirement within such jurisdiction. KDB Daewoo Securities International Network Daewoo Securities Co. Lt d. 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