Corporate Logo(source: hyosungheavyindustries.com)
Hyosung Heavy Industries (298040) traded sharply higher on April 28, driven by expectations of expanding overseas orders and sustained profitability improvement.
As of 10:43 a.m., Hyosung Heavy Industries was trading at 479,000 KRW, up 4.24% (19,500 KRW) from the previous session.
Yoo Jae-sun, an analyst at Hana Securities, noted, “Profitability at overseas manufacturing subsidiaries remains in double digits, and the performance of the India subsidiary appears to have improved significantly this quarter.” He added, “New orders in the heavy industries division reached 2 trillion KRW, up 46.0% year-on-year, with a backlog of 10.4 trillion KRW, representing an 89.2% increase. The growing share of overseas orders is expected to drive continued margin improvement.”
In the first quarter, Hyosung Heavy Industries posted revenue of 1.0761 trillion KRW, up 9.3% from a year earlier. Operating profit surged 82.3% to 102.4 billion KRW during the same period. The heavy industries division’s contribution led to record-high quarterly earnings, with division-specific profits reaching 90.2 billion KRW, up 150.7% year-on-year. The division’s margin rose by 6.1 percentage points to 12.3%.
Yoo commented, “The heavy industries division achieved quarterly record-high sales of 731.9 billion KRW, a 25.7% increase year-on-year, despite some revenue initially expected in Q1 being deferred to Q2. The clear improvement is due to high-margin order deliveries."
He further added, “The Indian subsidiary concentrated sales in high-margin ultra-high voltage circuit breakers, while North American sales maintained a strong 20% level.”
Regarding the construction segment, Yoo noted, “Revenue temporarily declined due to the completion of multiple projects in 2024.” However, he emphasized that "with a backlog supported by a profit-focused order strategy, the segment’s top line is expected to recover to previous levels."
Regarding profitability, Yoo observed, “Even excluding deferred European sales, the company maintained double-digit margins. With the domestic order share falling to the low 20% range and the North American share rising to the low 40% range, the business mix is expected to improve over the medium to long term.” He also pointed out that “construction margins remained in the mid-single-digit range at 3.5%, successfully defending profitability despite a revenue decline."
*[KOSPI]Hyosung Heavy Industries(298040), a subsidiary of the Hyosung Group, produces and sells essential equipment for the power industry such as transformers, circuit breakers, as well as industrial production equipment including motors and gears. The market capitalization is 4.28 trillion won(as of April 25, 2025, closing price).
Corporate Logo(source: hyosungheavyindustries.com)
Hyosung Heavy Industries (298040) traded sharply higher on April 28, driven by expectations of expanding overseas orders and sustained profitability improvement.
As of 10:43 a.m., Hyosung Heavy Industries was trading at 479,000 KRW, up 4.24% (19,500 KRW) from the previous session.
Yoo Jae-sun, an analyst at Hana Securities, noted, “Profitability at overseas manufacturing subsidiaries remains in double digits, and the performance of the India subsidiary appears to have improved significantly this quarter.” He added, “New orders in the heavy industries division reached 2 trillion KRW, up 46.0% year-on-year, with a backlog of 10.4 trillion KRW, representing an 89.2% increase. The growing share of overseas orders is expected to drive continued margin improvement.”
In the first quarter, Hyosung Heavy Industries posted revenue of 1.0761 trillion KRW, up 9.3% from a year earlier. Operating profit surged 82.3% to 102.4 billion KRW during the same period. The heavy industries division’s contribution led to record-high quarterly earnings, with division-specific profits reaching 90.2 billion KRW, up 150.7% year-on-year. The division’s margin rose by 6.1 percentage points to 12.3%.
Yoo commented, “The heavy industries division achieved quarterly record-high sales of 731.9 billion KRW, a 25.7% increase year-on-year, despite some revenue initially expected in Q1 being deferred to Q2. The clear improvement is due to high-margin order deliveries."
He further added, “The Indian subsidiary concentrated sales in high-margin ultra-high voltage circuit breakers, while North American sales maintained a strong 20% level.”
Regarding the construction segment, Yoo noted, “Revenue temporarily declined due to the completion of multiple projects in 2024.” However, he emphasized that "with a backlog supported by a profit-focused order strategy, the segment’s top line is expected to recover to previous levels."
Regarding profitability, Yoo observed, “Even excluding deferred European sales, the company maintained double-digit margins. With the domestic order share falling to the low 20% range and the North American share rising to the low 40% range, the business mix is expected to improve over the medium to long term.” He also pointed out that “construction margins remained in the mid-single-digit range at 3.5%, successfully defending profitability despite a revenue decline."
*[KOSPI]Hyosung Heavy Industries(298040), a subsidiary of the Hyosung Group, produces and sells essential equipment for the power industry such as transformers, circuit breakers, as well as industrial production equipment including motors and gears. The market capitalization is 4.28 trillion won(as of April 25, 2025, closing price).