HD Hyundai (267250) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
HD Hyundai is an operating holding company whose subsidiaries run real businesses such as shipbuilding, oil refining, electrical equipment, and construction machinery. The stake value and dividends from HD Korea Shipbuilding & Offshore Engineering (35%), which builds ships, HD Hyundai Oilbank (74%), which refines oil, and HD Hyundai Electric (36%) in electrical equipment form the backbone of the company's value. In the first quarter of 2026, shipbuilding, refining, and electrical equipment improved together, delivering revenue of ₩19.6 trillion and operating profit of ₩2.83 trillion — the highest quarterly operating profit since becoming a holding company — with operating profit up 120% year over year. What stands out lately is that the value of its listed-subsidiary stakes alone far exceeds the company's market cap, leaving it at a substantial discount to net asset value — a strength — while much of its earnings are tied together to the shipbuilding, refining, and electrical-equipment cycle, so if that cycle turns, results and stake value could wobble together.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Holding Companies”, a type typically read first through discount to NAV.
A holding company is less a maker of products than a vessel that holds stakes in several subsidiaries. So rather than an earnings multiple, the first lens is the discount to NAV — the market value against the summed worth of everything it owns.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
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 5.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 14.7% higher than a year earlier.
- ROE is 20.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 10.4%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Chung Mong-joon 26.6% (individual)
Controlling bloc incl. related parties 37.18%
With the controlling bloc holding 37%, the ownership structure is stable.
Net asset value (NAV) assessment 30% 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 Marine Solution | 55.32% |
| HD Hyundai Electric | 35.74% |
| HD Korea Shipbuilding & Offshore Engineering | 35.05% |
🔎 In-depth analysis Reading
HD Hyundai is not a company that sells products directly; it is an operating holding company that holds several business subsidiaries and reaps dividends and equity-method profit from those stakes. The substance that earns money is the subsidiaries: HD Korea Shipbuilding & Offshore Engineering (about 35% stake), which builds ships; HD Hyundai Oilbank (about 74%, unlisted), which refines crude oil and sells gasoline and diesel; HD Hyundai Electric (about 36%), which makes transformers and electrical equipment; HD Hyundai Marine Solution (about 55%) in ship after-sales parts and maintenance services; and HD Hyundai Site Solution (100%), which makes construction machinery such as excavators. As of the first quarter of 2026, refining is the largest by revenue at about 40%, while by profit shipbuilding (operating profit ₩1.36 trillion) and refining (₩933.5 billion) are the two main pillars. In short, the three cycles of shipbuilding, refining, and electrical equipment drive this company's earnings.
The latest close is ₩219,000 and the market capitalization is ₩17.3 trillion. The price sits above its 20-day moving average (₩203,750) and below its 60-day moving average (₩232,823). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.4, a neutral level. The one-month change is +4.0%, the three-month change is -23.3%, and the position relative to the 52-week high is -29.5%. Relative strength versus the KOSPI is 36 (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 35% of all stocks. Over the past three months it lagged the index by 10.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
For a holding company, reading ordinary metrics at face value distorts the picture. The P/E ratio (how many times one year's earnings the share price represents) is 17.97x and the P/B (the price relative to book net assets) is 1.58x. But a holding company's book equity records subsidiary stakes at historical acquisition cost, low and under-reflecting true value, so even a high-looking P/B is not expensive. For that reason, a holding company is better viewed by net asset value (NAV), which sums the market value of the stakes it holds (the subsector key metric is also the NAV discount). Profitability is solid. ROE (how much the company earns in a year on its equity) is 9.5%, higher than pure holding companies, because it is an operating holding company that consolidates real businesses such as refining. A debt ratio (debt relative to equity) of 778% looks very high, but this reflects capital-intensive businesses such as refining and construction machinery and financial liabilities being consolidated, and it differs from the financial burden at the holding-company parent. From a cash standpoint there is actually room to spare. Net debt (total borrowings minus cash; negative means net cash) is about -₩4.3 trillion, i.e., a net-cash position, and EV/EBITDA (enterprise value divided by pre-depreciation operating profit — a profit multiple reflecting debt and cash) is 1.5x, with an FCF yield (the ratio of cash actually earned to market cap) of 31%, indicating strong cash generation.
The direction of results is clearly improving. Full-year 2025 operating profit was ₩6.10 trillion, up 105% year over year, and net profit attributable to owners was ₩962.7 billion, up 89%. The pace steepened further into 2026. First-quarter operating profit of ₩2.83 trillion was 120% higher than a year earlier and the highest quarter since becoming a holding company. By division, shipbuilding was largest at ₩1.36 trillion of operating profit and a 16.7% operating margin, backed by refining at ₩933.5 billion and electrical equipment at ₩258.3 billion. This improvement was the result of shipbuilding, refining, and electrical equipment improving simultaneously rather than any single division, so the breadth of the earnings is wide. That said, shipbuilding and electrical-equipment margins are already in a high range, so going forward the key is less how fast they grow than how well they hold this level. The revenue growth rate itself is a gradual 5% or so, so the core of the growth lies in margin improvement rather than top-line scale.
Recent disclosures center on subsidiary results, orders, and dividends. On May 13, 2026 the preliminary first-quarter results disclosure confirmed record quarterly operating profit, and on the same day a large supply contract by a subsidiary was also disclosed. On May 21 an additional single sales/supply contract by a subsidiary was disclosed, showing that shipbuilding and electrical-equipment orders continue. On dividends, there was a cash and in-kind dividend decision and record-date disclosure on May 13, and the company maintains a dividend stance of ₩4,000 per share annually including quarterly dividends (a dividend yield of about 2.1% at the current price). In June, a corporate governance report and a large-business-group status disclosure updated its governance and affiliate status as a holding company.
The strengths and cautions divide clearly. First the strengths. The market value of the stakes in three listed subsidiaries alone (Korea Shipbuilding & Offshore Engineering, Electric, and Marine Solution) far exceeds HD Hyundai's market cap, and on top of this the pre-listing Oilbank (refining) and the wholly owned construction-machinery business are barely reflected in the price. In other words, the discount to net asset value is large. The balance sheet is also net cash with strong cash generation, and with shipbuilding and electrical-equipment orders continuing, earnings are setting new records. The caution concerns the nature of the earnings. This company's profit is tied together to the three cycles of shipbuilding, refining, and electrical equipment, so it is strong when the cycles are good at once but results and stake value can fall together if refining margins wobble or shipbuilding and electrical-equipment orders cool. Also, holding-company discounts tend to persist, so narrowing the discount requires catalysts such as sustained subsidiary results and stronger shareholder returns. In sum, when the cycle holds and subsidiary stake values are re-rated, the net-asset discount works as appeal; when the cycle turns, all three cycles can weaken together.
🔎 Valuation vs peers Undervalued
Large domestic holding companies (a mix of operating and pure holding companies). That said, because HD Hyundai is an operating holding company consolidating real shipbuilding, refining, and electrical-equipment businesses, its ROE and earnings volatility, unlike a pure holding company, are directly linked to the business cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG Corp. | 21.86x | 0.53x | 1.69% |
| SK Inc. | 23.10x | 1.25x | 26.75% |
| CJ Corporation | 29.70x | 0.80x | 3.47% |
| Hanwha Corporation | 15.86x | 0.48x | 5.74% |
For a holding company it is hard to declare over- or undervaluation from the P/E or P/B. Book equity records subsidiary stakes at acquisition cost, making the P/B look higher than reality, and net profit mixes equity-method and consolidated minority portions, making the P/E erratic. So a holding company is viewed by net asset value (NAV), which sums the market value of the stakes it holds. On this basis, the stakes in three listed subsidiaries alone (Korea Shipbuilding & Offshore Engineering, Electric, and Marine Solution) sum to about ₩23.3 trillion at current market prices, while HD Hyundai's market cap is about ₩15.0 trillion — a discount of about 36%. Add the pre-listing refining business (Oilbank 74%) and the wholly owned construction-machinery business, which are effectively unreflected in the price, and the real discount is even larger. The trailing P/E of 16.45x is only a reference given the nature of a holding company, and with earnings surging it looks much lower on a forward basis. With ROE and cash generation ahead of pure holding companies and the NAV discount above the middle of the usual range (30-50%), we judge it undervalued from an asset-value standpoint. That said, it should be noted that if shipbuilding, refining, and electrical-equipment cycles turn down at once, subsidiary stake values fall together and NAV itself can shrink.
Price history Close · MA20 · MA60
The latest close is ₩219,000 and the market capitalization is ₩17.3 trillion. The price sits above its 20-day moving average (₩203,750) and below its 60-day moving average (₩232,823). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.4, a neutral level. The one-month change is +4.0%, the three-month change is -23.3%, and the position relative to the 52-week high is -29.5%. Relative strength versus the KOSPI is 36 (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 35% of all stocks. Over the past three months it lagged the index by 10.2%. 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 -10.17% / 6M -22.80% / 12M -19.78%
Key metrics Computed vs whole-market median
Valuation
The P/E of 17.97x is above the whole-market median (12.97x). The P/B of 1.58x is above the whole-market median (0.84x). 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 20.2%, above the whole-market average (3.0%). The operating margin is 10.4%. The debt ratio is 488.9%, 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 | $43.1B | $47.6B | $50.1B | +5.16% ↓ slower |
| Operating profit | $1.4B | $2.1B | $4.3B | +104.47% ↑ faster |
| Net profit | $185.8M | $357.6M | $676.3M | +89.13% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $19.9B | $42.7B | $43.1B | $47.6B | $50.1B |
| Operating profit | $728.2M | $2.4B | $1.4B | $2.1B | $4.3B |
| Net profit | -$103.4M | $989.6M | $185.8M | $357.6M | $676.3M |
| Revenue CAGR | 4-yr avg 25.91% | ||||
Revenue rose 5.2% year over year (2023 ₩61.3 trillion → 2024 ₩67.8 trillion → 2025 ₩71.3 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 104.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 25.9%. The two-year revenue CAGR is 7.8%. In the most recent quarter (Q1 2026), revenue was 14.7% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 20.2% points to solid profitability.
Points to watch
- Revenue rose 5.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsDisclosure of preliminary consolidated Q1 2026 results — revenue ₩19.6 trillion, operating profit ₩2.83 trillion (+120% year over year), the highest quarterly operating profit since becoming a holding companyConfirms earnings strength as shipbuilding, refining, and electrical equipment improved together. That said, with shipbuilding and electrical-equipment margins already in a high range, whether they hold going forward is the key. Source
- 2026-05-13DividendCash and in-kind dividend decision and record-date disclosure — maintaining a dividend stance of ₩4,000 per share annually including quarterly dividendsContinued stable shareholder returns. A dividend yield of about 2.1% at the current price is a factor supporting the downside during the holding-company discount phase. Source
- 2026-05-21UpdateDisclosure of a subsidiary's single sales/supply contract — continued orders in shipbuilding and electrical equipmentAccumulating subsidiary order backlog reinforces future earnings visibility. Supports the operating value of the subsidiaries, which is the core of the holding-company parent's value. Source
- 2026-06-01FilingCorporate governance report and large-business-group status disclosure — updating the holding company's governance and affiliate statusConfirms transparency of governance and subsidiary stake structure as a holding company. Basic material for net-asset-value assessment. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Subsector key metric — net asset value (NAV) discount | 3 approx. ₩23.3 trillion vs HD approx. ₩15.0 trillion → approx. 36% . (74%)·(100%) . | 36.9% (base sector_valuation) | Confirmed | link |
| Q1 2026 consolidated results | revenue ₩19.60 trillion, operating profit ₩2.83 trillion, net profit ₩2.02 trillion | revenue 19₩601.9 billion·operating profit 2₩834.8 billion | Confirmed | link |
| Net debt and cash generation | -₩4.3 trillion, EV/EBITDA 1.5x, FCF approx. 31% | — | Unverified | link |
Recent filings Source
- 2026-06-04Amended filing
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-21Single supply/sales contract
- 2026-05-15PeriodicQuarterly report
- 2026-05-13DividendCash/stock dividend decision
- 2026-05-13DividendCash/stock dividend decision
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-13Single supply/sales contract
- 2026-05-06Disclosure
📖 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.