Corporate Logo(source: hd-hyundai.com)
On April 25, Samsung Securities raised its target price for HD Hyundai Heavy Industries (329180) from 360,000 KRW to 490,000 KRW citing the company's stronger-than-expected first-quarter results, which it said offset valuation concerns. The brokerage maintained a “Buy” rating on the stock.
Han Young-soo, an analyst at Samsung Securities, commented, “Among the five listed shipbuilders, HD Hyundai Heavy Industries had the highest stock price increase last year, and it has already risen an additional 31% this year. Although concerns had emerged over valuation, this earnings surprise supports upward revisions in earnings estimates and relieves those concerns.”
HD Hyundai Heavy Industries posted consolidated revenue of 3.82 trillion KRW and operating profit of 433.7 billion KRW for the first quarter, up 27.9% and 1,936.2% year-on-year, respectively. The company’s operating profit exceeded the market consensus by approximately 70%.
Han noted, “The shipbuilding division achieved a 13% operating margin without one-off gains, while the offshore division remained in the black, supported by a one-time cost compensation of 14 billion KRW. Even excluding this one-off item, the operating loss was contained at just 5.5 billion KRW.”
Samsung Securities emphasized that the high profitability shown in the first quarter is not a one-off. The proportion of sales from vessels ordered at higher prices continues to rise, and the product mix is shifting toward higher-margin gas carriers. On the cost side, productivity gains from newly hired workers and a time-lagged reflection of declining steel prices are expected to further support margins going forward.
*[KOSPI]HD Hyundai Heavy Industries(329180) engages in the manufacture and sale of ships, marine structures, plants, and engines, with the shipbuilding industry accounting for over 60% of its revenue. The market capitalization is 33.28 trillion won(as of April 24, 2025, closing price).
Corporate Logo(source: hd-hyundai.com)
On April 25, Samsung Securities raised its target price for HD Hyundai Heavy Industries (329180) from 360,000 KRW to 490,000 KRW citing the company's stronger-than-expected first-quarter results, which it said offset valuation concerns. The brokerage maintained a “Buy” rating on the stock.
Han Young-soo, an analyst at Samsung Securities, commented, “Among the five listed shipbuilders, HD Hyundai Heavy Industries had the highest stock price increase last year, and it has already risen an additional 31% this year. Although concerns had emerged over valuation, this earnings surprise supports upward revisions in earnings estimates and relieves those concerns.”
HD Hyundai Heavy Industries posted consolidated revenue of 3.82 trillion KRW and operating profit of 433.7 billion KRW for the first quarter, up 27.9% and 1,936.2% year-on-year, respectively. The company’s operating profit exceeded the market consensus by approximately 70%.
Han noted, “The shipbuilding division achieved a 13% operating margin without one-off gains, while the offshore division remained in the black, supported by a one-time cost compensation of 14 billion KRW. Even excluding this one-off item, the operating loss was contained at just 5.5 billion KRW.”
Samsung Securities emphasized that the high profitability shown in the first quarter is not a one-off. The proportion of sales from vessels ordered at higher prices continues to rise, and the product mix is shifting toward higher-margin gas carriers. On the cost side, productivity gains from newly hired workers and a time-lagged reflection of declining steel prices are expected to further support margins going forward.
*[KOSPI]HD Hyundai Heavy Industries(329180) engages in the manufacture and sale of ships, marine structures, plants, and engines, with the shipbuilding industry accounting for over 60% of its revenue. The market capitalization is 33.28 trillion won(as of April 24, 2025, closing price).