HD Hyundai Heavy Industries KOSPI Ticker : 329180

 

Company Overview

• Company Name: HD Hyundai Heavy Industries

• Ticker: KOSPI: 329180

• Founded: 1972

• Headquarters: Ulsan, South Korea

• Industry: Shipbuilding, Offshore Engineering, Industrial Engines

• Core Business Areas:

  • Commercial shipbuilding (LNG, LPG, VLCCs, etc.)

  • Offshore energy facilities and plants

  • Engine and heavy machinery manufacturing

• Global Position: World’s largest shipbuilder by capacity and order backlog

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Recent Stock Performance

• Current Price: 419,500 KRW

• 52-week Range: 125,900 – 431,500 KRW

• Year-to-Date (YTD): +80%

• 1-Year Return: +218%

• Market Capitalization: Approx. 37.2 trillion KRW

• EPS (TTM): 7,001.1 KRW

• PER (TTM): 59.49x

• ROE: 11.4%

• Dividend: 2,090 KRW (Dividend Yield: 0.50%)

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Key Issues & News

• Q1 2025 Earnings Highlights:

  • Revenue: 3.82 trillion KRW

  • Operating Profit: 433.7 billion KRW (+1,936% YoY)

  • Net Income: 284.2 billion KRW

• Surprise Upside: Operating margin exceeded 11%, beating analyst expectations

• Labor Productivity Up: 8% efficiency gain due to foreign workers and factory automation

• Order Momentum: Strong demand for eco-friendly ships amid global ESG trends

• Favorable Exchange Rate: USD-denominated contracts benefit from weak KRW

• Key Growth Area: LNG, ammonia-fueled vessels aligned with global decarbonization targets

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Financial Summary (Q1 2025)

Metric	Value
Revenue	3.82 trillion KRW
Operating Profit	433.7 billion KRW
Operating Margin	11.3%
Net Profit	284.2 billion KRW
Debt Ratio	134%
Cash & Equivalents	1.2 trillion KRW
R&D Investment	Up 19% YoY

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Analysis & Insights

HD Hyundai Heavy Industries is no longer just a cyclical stock. It’s positioning itself as a “future-ready” shipbuilder leveraging eco-innovation and engineering efficiency. Key observations include:

• Eco-Friendly Orders Drive Growth: Demand for LNG, methanol, and ammonia-powered vessels is soaring due to new emissions regulations

• Rising Operational Efficiency: Adoption of skilled foreign labor and factory automation is boosting margins

• Best-in-Class Among Peers: Outperforming Samsung Heavy and Hanwha Ocean in profitability and order conversion

• Beneficiary of Carbon Rules: Stricter IMO and EU environmental regulations create long-term structural tailwinds

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Investment Risks

• Valuation Concerns: Trading at ~60x PER, any slowdown in earnings growth could trigger sharp corrections

• Global Demand Volatility: Shipping demand is cyclical and sensitive to global trade activity

• Cost Pressures: Rising input costs for steel and labor may impact future margins

• Currency Risks: If the KRW strengthens, FX gains could reverse, reducing contract profitability