Corporate Logo(source: hd-hmd.com)
On April 25, NH Investment & Securities raised its target price for HD Hyundai Mipo (010620) by 27% to 193,000 KRW, citing a strong first-quarter earnings surprise driven by improved shipbuilding efficiency. The firm maintained its "Buy" rating. HD Hyundai Mipo closed at 158,500 KRW in the previous session.
According to analyst Jung Yeon-seung, HD Hyundai Mipo reported revenue of 1.18 trillion KRW for the first quarter of 2025, up 18.3% year-on-year. Operating profit turned positive at 68.5 billion KRW, surpassing market expectations.
Despite a shorter number of working days and the continued delivery of low-margin vessels, sales exceeded expectations thanks to enhanced productivity, which also led to profit improvements. Looking ahead, the analyst expects higher operating profit in the second quarter as both working days and cumulative productivity increase.
Jung noted that he raised his operating profit estimates for 2025 to 2027 by 14~20% to reflect improved construction efficiency. Although some low-margin vessels are still being delivered, these are expected to be phased out by the third quarter. He anticipates the pace of profit margin expansion will accelerate notably from the fourth quarter.
In addition, the analyst pointed out that the recent stock price rally increases the likelihood of the company being included in the MSCI index, which could enhance demand for the stock.
HD Hyundai Mipo has set a 2025 order target of 3.8 billion USD. While order momentum for its mainstay product and chemical carriers has softened compared to larger shipbuilders, the company is seeing growing opportunities in the rapidly expanding LNG bunkering ship segment.
“HD Hyundai Mipo is likely to secure orders for over 10 LNG bunkering vessels this year, and active discussions are underway for small container ships as well. This suggests the company could achieve over 3 billion USD in new orders,” Jung said.
He further added, “If the U.S. passes legislation in the second half of the year to begin building a strategic merchant fleet, HD Hyundai Mipo—recognized as a key allied shipyard—will see its competitive advantage spotlighted, and its order volume could be revised upward accordingly.”
*[KOSPI]HD Hyundai Mipo(010620), a subsidiary of HD Korea Shipbuilding & Offshore Engineering is the world’s No. 1 shipbuilding company in the mid-sized ship field. The market capitalization stands at 6.33 trillion(as of April 24, 2025, closing price).
Corporate Logo(source: hd-hmd.com)
On April 25, NH Investment & Securities raised its target price for HD Hyundai Mipo (010620) by 27% to 193,000 KRW, citing a strong first-quarter earnings surprise driven by improved shipbuilding efficiency. The firm maintained its "Buy" rating. HD Hyundai Mipo closed at 158,500 KRW in the previous session.
According to analyst Jung Yeon-seung, HD Hyundai Mipo reported revenue of 1.18 trillion KRW for the first quarter of 2025, up 18.3% year-on-year. Operating profit turned positive at 68.5 billion KRW, surpassing market expectations.
Despite a shorter number of working days and the continued delivery of low-margin vessels, sales exceeded expectations thanks to enhanced productivity, which also led to profit improvements. Looking ahead, the analyst expects higher operating profit in the second quarter as both working days and cumulative productivity increase.
Jung noted that he raised his operating profit estimates for 2025 to 2027 by 14~20% to reflect improved construction efficiency. Although some low-margin vessels are still being delivered, these are expected to be phased out by the third quarter. He anticipates the pace of profit margin expansion will accelerate notably from the fourth quarter.
In addition, the analyst pointed out that the recent stock price rally increases the likelihood of the company being included in the MSCI index, which could enhance demand for the stock.
HD Hyundai Mipo has set a 2025 order target of 3.8 billion USD. While order momentum for its mainstay product and chemical carriers has softened compared to larger shipbuilders, the company is seeing growing opportunities in the rapidly expanding LNG bunkering ship segment.
“HD Hyundai Mipo is likely to secure orders for over 10 LNG bunkering vessels this year, and active discussions are underway for small container ships as well. This suggests the company could achieve over 3 billion USD in new orders,” Jung said.
He further added, “If the U.S. passes legislation in the second half of the year to begin building a strategic merchant fleet, HD Hyundai Mipo—recognized as a key allied shipyard—will see its competitive advantage spotlighted, and its order volume could be revised upward accordingly.”
*[KOSPI]HD Hyundai Mipo(010620), a subsidiary of HD Korea Shipbuilding & Offshore Engineering is the world’s No. 1 shipbuilding company in the mid-sized ship field. The market capitalization stands at 6.33 trillion(as of April 24, 2025, closing price).