HJ Shipbuilding & Construction, formerly Hanjin Heavy Industries, earns money through a shipbuilding division that builds eco-friendly merchant ships and special-purpose vessels such as naval ships at its Yeongdo shipyard in Busan, and a construction division handling apartments and civil works. Shipbuilding's share of revenue, just 18% of the total in 2022, rose to about half by 2025, bringing shipbuilding and construction into balance, and in January 2026 the company signed a Master Ship Repair Agreement (MSRA) with the U.S. Navy, gaining eligibility to bid on maintenance, repair and overhaul (MRO) work over the next five years, with ship orders steadily accumulating. What stands out recently is that the earnings inflection from loss to profit, an order backlog in the ₩8 trillion range, and a new axis in U.S. Navy MRO are strengths, but with a debt ratio of 266% and a current ratio of 84%, the recovery in financial stability is still a work in progress, so earnings could waver if cost, currency, or delivery-delay pressures resurface.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 266.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 84.4%).
- Revenue rose 6.0% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 32.0% higher than a year earlier.
- ROE is 7.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.4%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Eco Prime Marine Pacific 48.89% (corporate)
Controlling bloc incl. related parties 48.9%
With the controlling bloc holding 49%, the ownership structure is stable.
🔎 In-depth analysis
- HJ Shipbuilding & Construction, formerly Hanjin Heavy Industries, earns money through two broad businesses.
- The first is shipbuilding.
- At its Yeongdo shipyard in Busan it builds merchant ships such as eco-friendly container ships and bunkering vessels that handle LNG (liquefied natural gas) fuel, and it is especially strong in special-purpose vessels that build naval ships.
- As the country's first designated defense contractor for warship construction, it has deep experience building navy vessels such as landing ships and high-speed landing craft.
- Recently it signed a Master Ship Repair Agreement (MSRA) with the U.S.
- Navy, gaining eligibility to take part in maintenance, repair and overhaul (MRO) work on U.S.
- Navy vessels.
- The second is construction, which does housing and infrastructure work such as apartments and civil engineering.
- In the past most of its revenue came from construction, but shipbuilding's share of revenue, just 18% of the total in 2022, rose to about half by 2025, so the structure has shifted to one where shipbuilding and construction are now in balance.
- The latest close is ₩16,680 and the market cap is ₩1.5 trillion.
- The price sits below its 20-day line (₩20,586) and below its 60-day line (₩23,708).
- It is under both its short- and medium-term moving averages, so the trend is on the soft side.
- The RSI (an indicator that gauges the strength of gains versus declines over the past 14 days on a 0-100 scale) is 32.8, a neutral level.
- The one-month change is -18.2%, the three-month change is -28.1%, and the price is -50.0% from its 52-week high.
- Relative strength versus the KOSPI is 58 (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 roughly in the top 41% of all stocks by strength.
- Over the past three months it lagged the index by 48.1%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- Based on last year's (2025) confirmed results, the P/E ratio (how many times one year's earnings the price represents) is 29.28x and P/B (how many times book equity the price represents) is 2.25x.
- The P/E looks high on its own, but the company has just emerged from a large loss in 2023 and sits at an inflection point where earnings are rising sharply, so a multiple on last year's earnings looks inflated relative to reality.
- In fact, first-quarter 2026 net profit alone (₩25.5 billion) already reaches half of last year's full-year net profit (₩51.4 billion).
- On profitability, ROE (how much is earned in a year on equity) is 7.7%, still in the early stage of recovery.
- On the balance sheet, the debt ratio (debt relative to equity) is 266% and the current ratio (assets that can be turned to cash immediately relative to debt due within a year) is 84%, so it should be noted that debt exceeds equity and there is not much slack in short-term liquidity.
- Over five years, after net losses in 2021 (-₩139.8 billion) and 2023 (-₩114.0 billion), it swung to a profit in 2024 (₩5.3 billion), and in 2025 the scale of earnings jumped sharply to ₩51.4 billion of net profit.
- Revenue rose 6.0% year on year to ₩2.0 trillion in 2025.
- The trend has become clearer more recently.
- First-quarter 2026 revenue was ₩541.4 billion, up 32% year on year, while operating profit surged to ₩24.6 billion (about 3.5x) and net profit to ₩25.5 billion (about 3.6x).
- The key driver was a 70% increase in shipbuilding revenue, from ₩158.1 billion to ₩268.6 billion, as construction volume for higher value-added vessels such as eco-friendly container ships and LNG bunkering ships began to be recognized in earnest.
- With a combined shipbuilding-and-construction order backlog in the ₩8 trillion range securing a production base for several years, it is natural to expect this year's earnings to grow substantially over last year.
- Simply annualizing first-quarter net profit approaches double last year's figure, and given the trajectory of a rising share of high value-added volume, net profit this year is on a path toward roughly ₩100 billion.
- On that basis, the current share price is at about 17 times this year's expected earnings, far lower than the 33x on last year's earnings.
- Recent disclosures are mostly filled with shipbuilding orders (single sales and supply contract signings).
- Ship-construction supply contracts and their amended disclosures continued through April to June, showing that orders are steadily accumulating.
- By the company's official announcement, in January 2026 it signed a Master Ship Repair Agreement (MSRA) with the U.S.
- Navy, gaining eligibility over the next five years to bid on maintenance, repair and overhaul (MRO) of U.S.
- Navy support and combat ships; this makes it the third Korean shipbuilder and the first mid-sized shipbuilder to do so.
- Since then it has secured actual repair volume and additional volume, establishing this as a new axis of business.
- The strong conditions are clear.
- Earnings are at an inflection point that runs from loss to profit and then to a sharp increase, and the shipbuilding division is lifting revenue and profit centered on higher value-added vessels and special-purpose ships (naval vessels).
- An order backlog in the ₩8 trillion range supports revenue visibility, and the new axis of U.S.
- Navy MRO has been added.
- Even though the P/E on last year's earnings looks high, the multiple falls sharply on this year's expected earnings, so if results are realized as planned, the valuation burden eases.
- On the other hand, the point to watch is financial strength.
- With a debt ratio of 266% and a current ratio of 84%, the recovery in financial stability is still in progress, and given the nature of the shipbuilding industry, earnings can waver with cost swings in items such as steel plate, currency, and delivery-delay risk.
- In short, it is a structure that is strong when orders convert smoothly into earnings and weak when cost and financial pressures resurface.
🔎 Valuation vs peers Fairly valued
In line with a business reality that combines shipbuilding (merchant and special-purpose vessels) and construction, the peer set is large shipbuilders (Hanwha Ocean, Samsung Heavy Industries) and a large builder (Hyundai Engineering & Construction).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Ocean | 19.33x | 3.90x | 20.19% |
| Samsung Heavy Industries | 33.80x | 4.44x | 13.15% |
| Hyundai Engineering & Construction | 29.51x | 1.33x | 4.51% |
The P/E of 33.5x on last year's (2025) earnings is similar to or lower than that of the large shipbuilders, but this multiple looks high partly because of the low base in the early stage of the turnaround. Recomputing the multiple on this year's expected earnings brings it to about 17x, which is not a heavy burden even against the large shipbuilders. The P/B of 2.6x is lower than Hanwha Ocean and Samsung Heavy Industries (4.9-5.2x) but higher than Hyundai Engineering & Construction (1.6x), reflecting an early-recovery position where ROE (7.7%) still trails the large shipbuilders (13-20%). It is a structure where the valuation burden eases if earnings improvement continues as planned, and the discount factor grows if the recovery in financial stability is delayed, so for now it is seen as fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩16,680 and the market capitalization is ₩1.5 trillion. The price sits below its 20-day moving average (₩20,586) and below its 60-day moving average (₩23,708). 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 32.8, a neutral level. The one-month change is -18.2%, the three-month change is -28.1%, and the position relative to the 52-week high is -50.0%. Relative strength versus the KOSPI is 58 (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 59% of all stocks. Over the past three months it lagged the index by 48.1%. 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 -48.14% / 6M -53.05% / 12M -4.70%
Key metrics vs sector median
Valuation
The P/E of 29.28x is above the sector median (8.02x). The P/B of 2.25x is above the sector median (0.50x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.7%, in line with the sector average (7.0%). The operating margin is 3.4%. The debt ratio is 266.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.4B | $1.2B | $1.3B | +6.03% ↑ faster |
| Operating profit | -$72.1M | $4.8M | $44.5M | +824.90% |
| Net profit | -$75.6M | $3.5M | $34.1M | +862.64% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.1B | $1.2B | $1.4B | $1.2B | $1.3B |
| Operating profit | -$72.2M | $4.4M | -$72.1M | $4.8M | $44.5M |
| Net profit | -$92.7M | -$33.2M | -$75.6M | $3.5M | $34.1M |
| Revenue CAGR | 4-yr avg 4.04% | ||||
Revenue rose 6.0% year over year (2023 ₩2.2 trillion → 2024 ₩1.9 trillion → 2025 ₩2.0 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 824.9% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.0%. The two-year revenue CAGR is -3.8%. In the most recent quarter (Q1 2026), revenue was 32.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-01-21IRBy signing a Master Ship Repair Agreement (MSRA) with the U.S. Navy, secured eligibility over the next five years to bid on maintenance, repair and overhaul (MRO) of U.S. Navy vessels (the third Korean shipbuilder, and the first mid-sized shipbuilder)A foothold into the U.S. Navy MRO market, reportedly worth around ₩20 trillion a year. Along with external recognition of its special-purpose vessel technology, it could become a new profit axis for the shipbuilding division, positive over the medium term Source
- 2026-05-20UpdateDisclosure of a single sales and supply contract signing - shipbuilding division ship-construction order (centered on higher value-added vessels)Fills the order backlog and raises future revenue visibility. Supports the trend of expanding shipbuilding revenue (positive short and medium term) Source
- 2026-05-15EarningsFirst-quarter 2026 report - revenue ₩541.4 billion (+32% year on year), operating profit ₩24.6 billion (about 3.5x), net profit ₩25.5 billion (about 3.6x). Shipbuilding division revenue up 70%Higher value-added vessel volume is being recognized in revenue in earnest, confirming earnings improvement in the results. Grounds for raising this year's earnings expectations (positive short term) Source
- 2026-06-08UpdateSingle sales and supply contract signing (amended filing) - amended disclosure related to a shipbuilding division supply contractConfirms and supplements the terms of the order contract. Affects order-backlog management and the revenue-recognition schedule (neutral to positive) Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 revenue, operating profit, net profit | revenue ₩541.4 billion / operating profit ₩24.6 billion / net profit ₩25.5 billion | revenue ₩541.4 billion / operating profit ₩24.6 billion / net profit ₩25.5 billion | Confirmed | link |
| Eligibility for U.S. Navy vessel MRO business | - | 2026-01-21 approx. (MSRA) , 5 MRO | Confirmed | link |
| Full-year 2026 net profit (internal estimate) | approx. ₩100.0 billion (self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-08Single supply/sales contract (amended)
- 2026-06-01Single supply/sales contract (amended)
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-29Corporate governance report
- 2026-05-20Single supply/sales contract
- 2026-05-18Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-06Single supply/sales contract (amended)
- 2026-04-29Single supply/sales contract (amended)
- 2026-04-27Single supply/sales contract
- 2026-04-23Single supply/sales contract (amended)
- 2026-04-23Single supply/sales contract (amended)
📖 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.