HD Hyundai is an operating holding company that controls several business subsidiaries and earns from the value of and dividends on those stakes, owning the shipbuilding intermediate holding company HD Korea Shipbuilding & Offshore Engineering, power-equipment maker HD Hyundai Electric, refiner HD Hyundai Oilbank, construction-machinery maker HD Hyundai Site Solution, and ship-service firm HD Hyundai Marine Solution, so the largest share of consolidated revenue comes from refining. In May it fair-disclosed preliminary consolidated results showing a sharp Q1 improvement and decided on cash and in-kind dividends, and a recent one-month plunge of -32% deepened the discount of its market cap against the value of its stakes (NAV). What stands out lately is that, while controlling subsidiaries in rising cycles such as shipbuilding and power equipment, the stakes in just two listed subsidiaries already exceed the entire market cap, a deep-discount strength; on the cautionary side, HD Hyundai Electric is already richly valued, the refining margin cycle applies, and a certain normal holding-company discount must be considered alongside.
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 9.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.6%.
- 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 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 Fairly valued37% 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
- HD Hyundai is less a company that makes and sells products directly and more an "operating holding company" that controls several business subsidiaries and earns from the value of and dividends on those stakes.
- Its core holdings are HD Korea Shipbuilding & Offshore Engineering, the shipbuilding intermediate holding company (about 35%, with HD Hyundai Heavy Industries, Mipo, and Samho beneath it); HD Hyundai Electric (about 37%), which makes power equipment such as transformers; the unlisted refiner HD Hyundai Oilbank (about 74%), which refines crude to sell gasoline, diesel, and lubricant base oils; HD Hyundai Site Solution (about 80%), which makes excavators and construction machinery; and HD Hyundai Marine Solution (about 55%), which handles ship after-sales service and parts.
- On a consolidated basis the largest share of revenue comes from refining, and profit swings are driven largely by the shipbuilding and power-equipment cycles and the refining margin.
- So this company should be understood not as a "one-product company" but as a "bundle of several solid businesses."
- The recent closing price is ₩189,400 and the market cap is ₩15.0 trillion.
- The price sits below its 20-day line (₩219,165) and below its 60-day line (₩255,547).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supporting gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 31.4, a neutral level.
- The one-month change is -21.9%, the three-month change is -19.9%, and the position versus the 52-week high is -39.0%.
- Relative strength versus KOSPI is 41 (on a 1-99 scale, calculated from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 59% for strength among all stocks.
- Over the past three months it lagged the index by 39.2%.
- It helps to read the chart alongside trading volume and the dates of disclosures.
- In plain terms, the P/E (how many times one year's profit the price is) is 15.8x on confirmed last-year results, the P/B (how many times book net assets the price is) is 1.48x, and the dividend yield is about 2.1% (₩4,000 per share, a payout ratio of about 29%).
- ROE (how much it earns in a year on equity) is 9.5%, a solid level.
- That said, holding-company metrics have two traps.
- First, the debt ratio (debt relative to equity) looks very high at about 778%, but that is a figure consolidating subsidiaries with large assets and borrowings, such as refining and construction machinery, so it is hard to declare risky by an ordinary-manufacturing yardstick.
- Second, book net assets carry subsidiary stakes low at "historical cost," so they look smaller than the actual market value of the stakes held.
- Therefore, rather than judging it over- or undervalued on P/E and P/B alone, it is more accurate to view it by the market value of its stakes (NAV).
- Over five years, revenue grew sharply from ₩28 trillion in 2021 to ₩71 trillion in 2025, and operating profit was ₩6.10 trillion in 2025, +104% year on year, while net profit attributable to controlling shareholders rose +89% to ₩0.96 trillion, a clear earnings recovery.
- The recovery steepened further in 2026: cumulative Q1 revenue of ₩19.6 trillion (+14.7%), operating profit of ₩2.83 trillion (+120%), and net profit attributable to controlling shareholders of ₩2.02 trillion (+160%) surpassed last year's full-year net profit in a single quarter.
- This momentum comes not from vague hope but from the actual business environment.
- Shipbuilding has secured around three years of work while new-build prices for high-value vessels such as LNG carriers are rising, so margins improve with each ship delivered; power equipment is in a phase where demand for ultra-high-voltage transformers is strong from data centers and aging-grid replacement, pushing the order backlog to fresh highs.
- In other words, even though the P/E based on last year's low profit looks high, on this year's normalized earnings the price burden is much lighter.
- Recent disclosures center on subsidiary results and orders and on shareholder returns.
- On May 13, a fair disclosure of preliminary consolidated results confirmed a sharp Q1 improvement, and the same day cash and in-kind dividends were decided, continuing the shareholder-return stance.
- On May 21, a subsidiary's single sale/supply contract (order) was disclosed, showing the order flow in shipbuilding and machinery.
- On June 1, the corporate governance report and large-business-group status were disclosed, and on June 4 there was a disclosure (correction) on a fine imposed related to a subsidiary.
- Given the holding-company nature, the subsidiaries' results, orders, and regulation, rather than the company itself, are the real driver of the share price.
- From an observation standpoint, the key is that, while controlling subsidiaries in rising cycles such as shipbuilding and power equipment, the market cap is deeply discounted against the market value of its stakes (NAV).
- The stakes in just two listed subsidiaries (HD Korea Shipbuilding & Offshore Engineering and HD Hyundai Electric) add up to about ₩20 trillion, already exceeding the company's entire market cap of ₩15.2 trillion, and to that are added the unlisted refining, construction-machinery, and ship-service stakes.
- The recent one-month plunge of -32%, which widened the discount, is a price-appeal factor.
- The cautions are also clear.
- Among the stakes held, HD Hyundai Electric is already richly valued at a 43x P/E, so part of the NAV is booked at a high market price; the large-weighted refining business rides the refining-margin cycle; and a holding company normally carries a certain discount against NAV, so the entire discount is unlikely to be filled at once.
- In short, it is strong when the subsidiaries' business conditions and a narrowing of the NAV discount move together, and weak when a deterioration in refining margins or a correction in subsidiaries' share prices coincide.
🔎 Valuation vs peers Inconclusive
Compared on the basis of core subsidiaries within the same group (shipbuilding, power equipment) and the market value of the stakes held.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HD Korea Shipbuilding & Offshore Engineering | 10.69x | 1.74x | 16.32% |
| HD Hyundai Electric | 40.10x | 14.48x | 36.11% |
| HD Hyundai Heavy Industries | 37.60x | 5.70x | 15.15% |
Because a holding company's consolidated P/E and P/B carry subsidiary stakes low at historical cost and make it look pricier than it is, it is more accurate to view it by the market value of the stakes held (NAV). The combined stake value of just two listed subsidiaries (HD Korea Shipbuilding & Offshore Engineering and HD Hyundai Electric) is about ₩20 trillion, exceeding the company's market cap of ₩15.2 trillion, and adding the unlisted refining, construction-machinery, and ship-service stakes makes the asset-value discount deep. That said, among the stakes held, HD Hyundai Electric is already richly valued at a 43x P/E, so part of the NAV is booked at a peak market price; a holding company normally carries a certain discount against NAV; and there is refining-cycle risk. So rather than declaring it undervalued, the NAV discount and the subsidiaries' business conditions must be viewed together, and it is left inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩189,400 and the market capitalization is ₩15.0 trillion. The price sits below its 20-day moving average (₩219,165) and below its 60-day moving average (₩255,547). 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 31.4, a neutral level. The one-month change is -21.9%, the three-month change is -19.9%, and the position relative to the 52-week high is -39.0%. Relative strength versus the KOSPI is 41 (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 41% of all stocks. Over the past three months it lagged the index by 39.2%. 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 -39.23% / 6M -39.84% / 12M -36.22%
Key metrics vs whole-market median
Valuation
The P/E of 15.54x is in line with the whole-market median (13.81x). The P/B of 1.48x is above the whole-market median (1.15x). 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 9.5%, above the whole-market average (5.0%). The operating margin is 8.6%. The debt ratio is 777.8%, 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 | $40.6B | $44.9B | $47.2B | +5.16% ↓ slower |
| Operating profit | $1.3B | $2.0B | $4.0B | +104.47% ↑ faster |
| Net profit | $175.3M | $337.4M | $638.1M | +89.13% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $18.8B | $40.3B | $40.6B | $44.9B | $47.2B |
| Operating profit | $687.0M | $2.2B | $1.3B | $2.0B | $4.0B |
| Net profit | -$97.5M | $933.6M | $175.3M | $337.4M | $638.1M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue rose 5.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-13EarningsFair disclosure of preliminary operating results on a consolidated basis — cumulative Q1 revenue ₩19.6 trillion, operating profit ₩2.83 trillion, net profit attributable to controlling shareholders ₩2.02 trillion, a large improvement year on yearShort term: confirmation of earnings normalization provides a basis for a fundamental re-valuation. Medium term: the results make the rising phase in shipbuilding and power equipment visible. Source
- 2026-05-13DividendDecision on cash and in-kind dividends and confirmation of the dividend record date (register closing) — maintaining the shareholder-return stanceShort term: secures dividend visibility (dividend yield about 2.1%). Medium term: shareholder return of the holding company's cash flow. Source
- 2026-05-21UpdateDisclosure of a subsidiary's single sale/supply contract — confirmation of the order flow in shipbuilding and machineryShort term: a signal of order momentum. Medium term: strengthens visibility of subsidiaries' revenue and workload. Source
- 2026-06-01FilingDisclosure of the corporate governance report and large-business-group status — regular disclosure of holding-company governance and affiliate statusShort term: limited impact. Medium term: material for reviewing governance transparency and shareholder-return policy. Source
- 2026-06-04UpdateSubsidiary material management matter — disclosure (correction) of a fine imposedShort term: a limited cost issue. Medium term: a target for monitoring regulatory and compliance risk. Source
Figure cross-check computed ↔ external
Recent filings
- 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.