Corporate Logo(source: hd-hyundaielectric.com)
Hanwha Investment & Securities raised its target price for HD Hyundai Electric (267260) from 500,000 won to 560,000 won on July 23, citing a clear trajectory of long-term earnings growth despite quarterly volatility.
As of 9:24 a.m. on the same day, shares of HD Hyundai Electric were trading at 492,000 won, up 24,000 won (5.13%) from the previous session.
The company’s second-quarter earnings were in line with market expectations. Revenue for the quarter was 906.2 billion won, down 1.2% year-on-year, while operating profit declined 0.5% to 209.1 billion won during the same period.
Despite fluctuations in cost factors such as tariffs, the company maintained solid margins. Although the share of North America in the order backlog declined slightly, it remained above 64%, supporting a continued upward trend in profit margins.
New orders rose 13.2% year-on-year to 996 million dollars, while the order backlog increased 24.7% to 6.55 billion dollars.
A notable fluctuation in revenue was observed at the U.S. sales subsidiary, attributed to a change in revenue recognition standards—from Free on Board (FOB) to Delivered Ex Ship (DES)—implemented in the fourth quarter of last year. Hanwha Investment & Securities noted that earnings may remain volatile due to the time lag between production and delivery.
Shipments currently in progress are expected to be reflected sequentially in second-half results. Since consolidation adjustments are made in proportion to gross profit, and order margins continue to improve, the outlook for long-term earnings growth remains solid.
While new orders declined slightly from the previous quarter, strong demand and constrained supply conditions remain intact.
Yu Jae-sun, an analyst at Hanwha Investment & Securities, commented, “Although policy uncertainty has yet to be resolved, tariffs have already been reflected in costs. If negotiations with clients conclude positively, this could lead to further profit improvement.”
*[KOSPI] HD Hyundai Electric(267260) manufactures and supplies various electrical and electronic devices and energy solutions required for all stages of the power supply process, from generation → transmission → distribution → consumption(load). The market capitalization is 16.87 trillion won (as of July 22, 2025, closing price).
Corporate Logo(source: hd-hyundaielectric.com)
Hanwha Investment & Securities raised its target price for HD Hyundai Electric (267260) from 500,000 won to 560,000 won on July 23, citing a clear trajectory of long-term earnings growth despite quarterly volatility.
As of 9:24 a.m. on the same day, shares of HD Hyundai Electric were trading at 492,000 won, up 24,000 won (5.13%) from the previous session.
The company’s second-quarter earnings were in line with market expectations. Revenue for the quarter was 906.2 billion won, down 1.2% year-on-year, while operating profit declined 0.5% to 209.1 billion won during the same period.
Despite fluctuations in cost factors such as tariffs, the company maintained solid margins. Although the share of North America in the order backlog declined slightly, it remained above 64%, supporting a continued upward trend in profit margins.
New orders rose 13.2% year-on-year to 996 million dollars, while the order backlog increased 24.7% to 6.55 billion dollars.
A notable fluctuation in revenue was observed at the U.S. sales subsidiary, attributed to a change in revenue recognition standards—from Free on Board (FOB) to Delivered Ex Ship (DES)—implemented in the fourth quarter of last year. Hanwha Investment & Securities noted that earnings may remain volatile due to the time lag between production and delivery.
Shipments currently in progress are expected to be reflected sequentially in second-half results. Since consolidation adjustments are made in proportion to gross profit, and order margins continue to improve, the outlook for long-term earnings growth remains solid.
While new orders declined slightly from the previous quarter, strong demand and constrained supply conditions remain intact.
Yu Jae-sun, an analyst at Hanwha Investment & Securities, commented, “Although policy uncertainty has yet to be resolved, tariffs have already been reflected in costs. If negotiations with clients conclude positively, this could lead to further profit improvement.”
*[KOSPI] HD Hyundai Electric(267260) manufactures and supplies various electrical and electronic devices and energy solutions required for all stages of the power supply process, from generation → transmission → distribution → consumption(load). The market capitalization is 16.87 trillion won (as of July 22, 2025, closing price).