HD Korea Shipbuilding & Offshore Engineering is an intermediate holding company that oversees shipbuilding affiliates. Through its core subsidiaries HD Hyundai Heavy Industries (which absorbed HD Hyundai Mipo in December 2025) and HD Hyundai Samho, it earns money making merchant vessels such as LNG carriers, container ships and tankers, along with offshore and engine products. In the first quarter of 2026 consolidated revenue was ₩8.1409 trillion and operating profit was ₩1.356 trillion, up 20.2% and 57.8% respectively from a year earlier, as a rising share of high-margin eco-friendly vessels and productivity gains showed up in the results. The key point to watch: while the shipbuilding market is alive, a thick order backlog and rising ship prices lift profit in steps; but this company's true value should be viewed through the market value of its listed-subsidiary stakes (NAV) rather than a consolidated P/E, and if the pace of new orders or ship prices turn down, the earnings outlook can shake with the cycle.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 17.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 20.2% higher than a year earlier.
- ROE is 16.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.0%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder HD Hyundai 35.05% (corporate)
Controlling bloc incl. related parties 36.64%
With the controlling bloc holding 37%, the ownership structure is stable.
Net asset value (NAV) assessment Fairly valued42% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| HD Hyundai Heavy Industries | 69.23% |
| HD Hyundai Energy Solutions | 53.57% |
🔎 In-depth analysis
- HD Korea Shipbuilding & Offshore Engineering is less a company that builds ships directly than an intermediate holding company overseeing shipbuilding subsidiaries.
- Its core subsidiaries are the listed HD Hyundai Heavy Industries and the unlisted HD Hyundai Samho, and through them it makes merchant vessels such as LNG carriers, large container ships and Suezmax tankers, plus offshore plants and marine engines.
- As of the first quarter of 2026, the combined HD Hyundai Heavy Industries posted revenue of ₩5.9163 trillion and operating profit of ₩905.4 billion, and HD Hyundai Samho posted revenue of ₩2.1245 trillion and operating profit of ₩395.2 billion, together carrying most of the group's results.
- On top of this, an engine business expanding beyond shipbuilding, such as engines for data-center power generation, is being added as a new growth axis.
- The latest close is ₩327,500 and the market cap is ₩23.2 trillion.
- The price sits below its 20-day line (₩378,050) and below its 60-day line (₩409,792).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (an indicator that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 34.2, a neutral level.
- The one-month change is -15.0%, the three-month change is -12.9%, and it stands -31.7% below its 52-week high.
- Its relative strength versus the KOSPI is 18 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 82% of all stocks for strength.
- Over the past three months it lagged the index by 32.3%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The valuation metrics have to be read with the holding-company nature in mind.
- On last year's results, the P/E ratio (how many years of profit the price equals) is 10.69x and the P/B (price relative to net assets) is 1.74x.
- However, because a holding company's book equity records subsidiary stakes at low acquisition cost, the P/B looks higher than it really is, an optical effect.
- Profitability is solid: ROE (how much is earned in a year on equity) is 16.3% and the operating margin is 13.0%.
- The finances are a net-cash structure, with net debt (total borrowings minus cash, negative meaning net cash) of -₩3.2882 trillion.
- EV/EBIT (enterprise value divided by operating profit, a debt-adjusted version of the P/E) is a low 5.73x.
- The FCF yield (actual cash generated relative to market cap) is a high 13.3%, showing strong cash generation.
- The debt ratio (debt against equity) reads 170%, but shipbuilding's characteristic advance payments are booked as liabilities, so it is hard to compare directly against a general manufacturer's standard.
- The profit trajectory is a recovery and expansion phase rising fast off a trough.
- Revenue grew from ₩15.5 trillion in 2021 to ₩29.9 trillion in 2025.
- Operating profit swung from a ₩1.4 trillion loss in 2021 to profit from 2023 and up to ₩3.9 trillion in 2025.
- Net profit also expanded from ₩0.2 trillion in 2023 to ₩2.17 trillion in 2025.
- In the first quarter of 2026 the improvement continued, with operating profit up 57.8% and net profit up 86.6% year over year.
- The shipbuilding market supports the outlook ahead as well.
- HD Hyundai's shipbuilding affiliates set a 2026 order target of $17.03 billion (about ₩24.7 trillion) and won $6.39 billion in the first quarter alone, filling 37.5% of the target.
- Because the order backlog already secured and rising ship prices flow into revenue over the coming years, this year's profit has ample room to move up another step.
- Even though the P/E on last year's results shows about 11x, on a forward basis reflecting this year's profit growth it actually falls to around 6x.
- Earnings and order disclosures have kept coming.
- Preliminary earnings disclosures on May 7 and May 20 confirmed first-quarter consolidated revenue of ₩8.14 trillion and operating profit of ₩1.36 trillion.
- Through May and June, several single-sale/supply contract (new-ship order) disclosures by subsidiaries followed, confirming order flow alongside the earnings disclosures.
- On June 1 a large business group status disclosure and a corporate governance report were released.
- On May 20 there was a disclosure on a cash dividend.
- The dividend yield is 3.6% (₩12,300 per share), high for the shipbuilding industry, with a payout ratio around 40%.
- The strengths are clear.
- With a net-cash structure, ROE in the 16% range and an operating margin of 13%, profitability is good, and a thick order backlog raises future earnings visibility.
- Above all, because this is a holding company, it should not be judged high or low by a single consolidated P/E.
- It is more accurate to view it through net asset value (NAV) that sums the market value of the listed-subsidiary stake (HD Hyundai Heavy Industries) and the operating value of the unlisted subsidiary (HD Hyundai Samho).
- In fact, while the subsidiary HD Hyundai Heavy Industries and Samsung Heavy Industries trade at P/E multiples of 34-38x, this company sits at around 6x on a forward basis, reflecting a large holding-company NAV discount.
- There are cautions too.
- Because profit is heavily driven by subsidiary results and the cycle, if the pace of new orders slows or ship prices turn down, the earnings outlook shakes with them.
- In the end, while the shipbuilding market and order flow hold up, it is strong as an undervalued, high-quality holding company, and it weakens when signs appear that the cycle is passing its peak.
🔎 Valuation vs peers Undervalued
Compared against listed shipbuilders that are the core subsidiaries and the real substance of the merchant-ship business; because it is a holding company, a holding-stake value (NAV) view takes priority over a consolidated P/E and P/B.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HD Hyundai Heavy Industries | 37.60x | 5.70x | 15.15% |
| Samsung Heavy Industries | 33.80x | 4.44x | 13.15% |
As a holding company, judging by a single consolidated P/E distorts the picture. It has to be viewed through net asset value (NAV) that sums the market value of the listed-subsidiary stakes and the operating value of the unlisted subsidiary. The 11.1x P/E on last year's results looks high because profit is rebounding sharply off a trough, but on a forward basis reflecting this year's profit growth it falls to around 6x. Compared with the subsidiary HD Hyundai Heavy Industries trading at 38x and Samsung Heavy Industries at 34x, this company holds those subsidiaries as stakes yet sits at a far lower multiple, reflecting a large holding-company NAV discount. The 1.81x P/B is also an optical effect that looks higher than it really is because book equity records subsidiary stakes at low acquisition cost. All together, we judge it undervalued on the basis of the discount to NAV, the low forward multiple, and the net-cash, high-profitability profile.
Price history Close · MA20 · MA60
The latest close is ₩327,500 and the market capitalization is ₩23.2 trillion. The price sits below its 20-day moving average (₩378,050) and below its 60-day moving average (₩409,792). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.2, a neutral level. The one-month change is -15.0%, the three-month change is -12.9%, and the position relative to the 52-week high is -31.7%. Relative strength versus the KOSPI is 18 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 18% of all stocks. Over the past three months it lagged the index by 32.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -32.29% / 6M -50.91% / 12M -57.65%
Key metrics vs sector median
Valuation
The P/E of 10.69x is in line with the sector median (12.45x). The P/B of 1.74x is in line with the sector median (1.64x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 16.3%, in line with the sector average (15.0%). The operating margin is 13.0%. The debt ratio is 170.4%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $14.1B | $16.9B | $19.8B | +17.21% ↓ slower |
| Operating profit | $187.1M | $950.5M | $2.6B | +172.26% ↓ slower |
| Net profit | $146.9M | $777.0M | $1.4B | +84.97% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $10.3B | $11.5B | $14.1B | $16.9B | $19.8B |
| Operating profit | -$917.8M | -$235.7M | $187.1M | $950.5M | $2.6B |
| Net profit | -$615.9M | -$143.8M | $146.9M | $777.0M | $1.4B |
| Revenue CAGR | 4-yr avg 17.90% | ||||
Revenue rose 17.2% year over year (2023 ₩21.3 trillion → 2024 ₩25.5 trillion → 2025 ₩29.9 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 172.3% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 17.9%. The two-year revenue CAGR is 18.6%. In the most recent quarter (Q1 2026), revenue was 20.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.8%, is on the high side.
- ROE of 16.3% points to solid profitability.
- Revenue grew 17.2% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-20EarningsFirst-quarter 2026 consolidated preliminary earnings disclosure — revenue ₩8.1409 trillion, operating profit ₩1.356 trillion (year over year, revenue +20.2%, operating profit +57.8%)Confirms that margins rose clearly on a growing share of high-margin eco-friendly vessels and productivity gains. Supports the medium-term earnings-improvement trend. Source
- 2026-06-01UpdateSubsidiary single-sale/supply contract disclosure (new-ship orders) — multiple contracts disclosed across May and JuneAccumulating order backlog secures revenue visibility for the coming years. A near- and medium-term catalyst that supports continued upside in the cycle. Source
- 2026-05-20DividendCash dividend disclosure — dividend yield about 3.6% (₩12,300 per share), payout ratio about 40%An appeal of shareholder returns with a dividend on the high side within shipbuilding. Improving profit and a net-cash base support dividend sustainability. Source
- 2026-06-01FilingCorporate governance report and large business group status disclosurePeriodic disclosure of holding-company governance and affiliate status. Reference material on the equity structure when valuing by NAV. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated operating profit | 1₩356.0 billion | 1₩356.0 billion | Confirmed | link |
| Q1 2026 consolidated revenue | 8₩140.9 billion | 8₩140.9 billion | Confirmed | link |
| 2026 shipbuilding affiliates' annual order target | — | 1703000 (approx. ₩24.7 trillion), 1 63.9 | Unverified | link |
| 2026 net profit (own estimate) | approx. ₩3.8 trillion | — | Unverified | — |
Recent filings
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Corporate governance report
- 2026-06-01Single supply/sales contract
- 2026-05-29Large-business-group status disclosure
- 2026-05-21Single supply/sales contract
- 2026-05-20EarningsFair-disclosure notice
- 2026-05-20EarningsFair-disclosure notice
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Single supply/sales contract
- 2026-05-13Single supply/sales contract
- 2026-05-08Single supply/sales contract
- 2026-05-07EarningsFair-disclosure notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.