HD Hyundai Electric (267260) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
HD Hyundai Electric is a power-equipment company that makes the transformers, distribution gear and rotating machines (large motors and generators) essential for carrying electricity. It is especially strong in the 765kV ultra-high-voltage (UHV) transformers at the heart of transmission grids, and its earnings have grown quickly on the back of North American grid-replacement and data-center buildout demand. In 2025 it posted revenue of ₩4.08 trillion, operating profit of ₩995.3 billion (an operating margin of 24.4%) and net profit of ₩732.6 billion, with net profit up 46% year-on-year, and in the first quarter of 2026 net profit rose 35% year-on-year. The point to watch is that it has already secured an order backlog of more than three years' worth of work, so it is strong while power-infrastructure investment continues, backed by high ROE and a net cash balance sheet, but power equipment is an industry tied to large-project order cycles, so if the pace of North American investment slows, new orders and margins could ease 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 “Power Equipment” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through forward P/E.
Power-equipment firms make the transformers and grid gear that move electricity, and their results swing with grid-investment cycles and large project awards. Because the backlog converting into future earnings matters more than results already booked, the forward P/E — reflecting expected earnings — is the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
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
- Revenue rose 22.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.1% higher than a year earlier.
- ROE is 37.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 25.2%.
Ownership & governance As of 2025-12-31
Largest shareholder HD Hyundai 35.74% (corporate)
Controlling bloc incl. related parties 37.41%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis Reading
HD Hyundai Electric makes the "power equipment" needed to generate and carry electricity. Its business falls into three broad lines. First, transformers, which change the voltage of high-voltage electricity from power plants so it can be sent over long distances. In particular, UHV (765kV) large transformers are high-value products not everyone can make, and are this company's core weapon. Second, distribution gear (distribution transformers, circuit breakers and the like) that splits electricity to cities, factories and data centers. Third, rotating machines, meaning large marine and industrial motors and generators. A large share of revenue comes from exports, and lately more than half of new orders have originated in North America. A global transformer shortage, driven by the replacement of aging grids and construction of AI data centers, is feeding directly into demand for this company.
The latest close is ₩761,000 and the market capitalization is ₩27.4 trillion. The price sits above its 20-day moving average (₩757,600) and below its 60-day moving average (₩949,433). 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 46.7, a neutral level. The one-month change is -15.3%, the three-month change is -45.2%, and the position relative to the 52-week high is -46.4%. Relative strength versus the KOSPI is 30 (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 29% of all stocks. Over the past three months it lagged the index by 36.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Profitability is this company's biggest strength. ROE (how much is earned in a year on equity) is 36.1%, among the very highest of all listed Korean companies. The operating margin of 24.4% is also well above the power-equipment sector average. The P/E ratio (how many times one year's earnings the share price represents) is 37.44x and the P/B (how many times book equity the share price represents) is 13.19x, which look high on the absolute numbers alone. But this P/E is based on confirmed results through last year, when profit was growing quickly, so reflecting this year's rising profit brings the multiple down. On the balance sheet, the debt ratio (debt relative to equity) reads a somewhat high 235%, but this reflects the manufacturing trait of large operating liabilities such as order advances and trade payables. In fact net debt is negative, meaning the company holds about ₩880 billion more cash than borrowings, a net cash position. The FCF yield (actual cash generated relative to market cap) is about 2.0%; with capital expenditure and working capital rising to meet orders, its immediate cash headroom is on the low side relative to its margins.
The scale of growth is large. Five years ago net profit was a loss of ₩33.7 billion, but after turning to profit it climbed steeply to ₩259.2 billion in 2023, ₩501.6 billion in 2024 and ₩732.6 billion in 2025. Revenue has also grown at an average of 23% a year over the past three years. In the first quarter of 2026 revenue growth was a somewhat modest 2.1%, but operating profit rose 18% and net profit 35%, with profit growth running well ahead of revenue. This is the result of margins stepping up as the share of high-value UHV transformers grew. The company has said it already has an order backlog of more than three years' worth, and it raised its 2026 annual order target 22.8% from $4.222 billion to $5.185 billion (regulatory disclosure). Because this accumulated backlog converts into future revenue, we expect this year's net profit to step up another notch from last year. On that basis, the P/E on this year's expected earnings works out to about 33x, lower than the 40x on last year's results.
Disclosures center on large orders and an upward revision to the order target. On May 7, 2026 it signed a ₩173.0 billion (4.24% of recent revenue) contract to supply 765kV UHV transformers and reactors to a large North American power company. Then on July 6 it issued a correction disclosure raising the annual order target 22.8% to $5.185 billion, citing expanding demand for North American power-infrastructure investment and data-center distribution gear. On results, the April 28 preliminary figures and the May 15 first-quarter report confirmed the rising profit trend. Separately there were several filings on changes in the largest shareholder's holdings and executive stakes, but these are routine stake adjustments related to dividends and inheritance and are distant from business fundamentals.
The core is being "the top-preference beneficiary of the grid-replacement cycle." When strong, it is strong like this: UHV transformers have high entry barriers that not everyone can clear, and supply is currently short worldwide. So this company commands high margins and has secured an order backlog of more than three years in advance. ROE of 36% and a net cash balance sheet shine especially in this phase. Compared with large peers, its earnings quality is the best while its share multiple is actually lower. The cautions are equally clear. Power equipment is an industry driven by large-project orders. If the pace of North American investment slows or new orders fail to accumulate as expected, the current high margins and growth rate could normalize over time. The bottom line is that it is strong while power-infrastructure investment continues, and weakens when signs emerge that the order cycle is rolling over.
🔎 Valuation vs peers Fairly valued
Large- and mid-cap domestic power-equipment (transformer, distribution and rotating-machine) peers with overlapping business mix, chosen for sharing UHV transformers and North American grid demand.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LS ELECTRIC | 105.98x | 14.69x | 16.36% |
| Hyosung Heavy Industries | 48.57x | 10.54x | 21.18% |
| Iljin Electric | 27.04x | 4.66x | 19.39% |
| Jeryong Electric | 12.50x | 3.20x | 22.65% |
On the absolute numbers, a P/E of 40.5x and P/B of 14.6x are not low. But two things must be considered together. First, this P/E is based on confirmed results through last year, when profit was growing quickly; reflecting this year's expected earnings brings the multiple down to about 33x. In a phase where profit is inflecting, this-year earnings give a more accurate picture than last year's multiple. Second, its relative position within the true peer group matters. Among large power-equipment peers, LS ELECTRIC trades at a P/E of 105x and Hyosung Heavy Industries at 51x, while HD Hyundai Electric at 40x is the lowest of these. Yet its ROE (36.1%) and operating margin (24.4%) are the highest of the three. In other words, its earnings quality is the best while its multiple is priced the lowest, so against large peers it is actually on the cheaper side. Its multiple is higher than mid-cap peers Iljin Electric (P/E 29x) and Jeryong Electric (P/E 13x), but this can be seen as a justified premium stemming from a larger share of UHV products and large North American orders. In sum, it is hard to call it outright cheap, but given its growth rate and earnings quality the valuation is a reasonable "fairly valued" level, and relative to large peers it sits in an attractive spot.
Price history Close · MA20 · MA60
The latest close is ₩761,000 and the market capitalization is ₩27.4 trillion. The price sits above its 20-day moving average (₩757,600) and below its 60-day moving average (₩949,433). 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 46.7, a neutral level. The one-month change is -15.3%, the three-month change is -45.2%, and the position relative to the 52-week high is -46.4%. Relative strength versus the KOSPI is 30 (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 29% of all stocks. Over the past three months it lagged the index by 36.2%. 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 -36.25% / 6M -28.44% / 12M -20.86%
Key metrics Computed vs sector median
Valuation
The P/E is 37.44x. The P/B of 13.19x is above the sector median (10.54x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 6.5%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.227x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 37.8%, above the sector average (21.0%). The operating margin is 25.2%. The debt ratio is 158.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.9B | $2.3B | $2.9B | +22.79% ↓ slower |
| Operating profit | $221.4M | $470.0M | $699.2M | +48.78% ↓ slower |
| Net profit | $182.1M | $352.4M | $514.7M | +46.06% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.3B | $1.5B | $1.9B | $2.3B | $2.9B |
| Operating profit | $6.8M | $93.5M | $221.4M | $470.0M | $699.2M |
| Net profit | -$23.7M | $114.1M | $182.1M | $352.4M | $514.7M |
| Revenue CAGR | 4-yr avg 22.59% | ||||
Revenue rose 22.8% year over year (2023 ₩2.7 trillion → 2024 ₩3.3 trillion → 2025 ₩4.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 48.8% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 22.6%. The two-year revenue CAGR is 22.9%. In the most recent quarter (Q1 2026), revenue was 2.1% 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 37.8% points to solid profitability.
- Revenue grew 22.8% 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
- 2026-07-06Filing2026 annual order target raised 22.8% from $4.222 billion to $5.185 billion (correction disclosure). Reflects expanding demand for North American UHV transformers and data-center distribution gear.An official company signal raising the bar for medium-term revenue and profit. The degree to which orders actually convert into revenue is the key question. Source
- 2026-05-07Update₩173.0 billion contract signed with a large North American power company to supply 765kV UHV transformers and reactors (4.24% of recent revenue).An order for high-value UHV products that strengthens both margins and the order backlog, a short- and medium-term positive. Source
- 2026-05-15EarningsFirst-quarter 2026 report filed. Revenue ₩1.037 trillion (+2.1%), operating profit ₩258.3 billion (+18.4%), net profit ₩207.7 billion (+35.4%), continuing the rise in profit.Confirms margin improvement as profit grows faster than revenue. The effect of the rising UHV share. Source
- 2026-04-28EarningsFirst-quarter 2026 preliminary results disclosure gave advance confirmation of the quarter's profit growth.A short-term event that confirmed the direction of profit at the start of earnings season. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 net profit | ₩732.6 billion | ₩732.6 billion | Confirmed | link |
| First-quarter 2026 net-profit growth rate | +35.4% (₩207.7 billion) | 2026-05-15 | Confirmed | link |
| 2026 expected net profit (own estimate) | approx. ₩900.0 billion → approx. 33x | — | Unverified | link |
| 2026 order target | 51.85 | 2026-07-06 | Confirmed | link |
Recent filings Source
- 2026-06-04OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29OwnershipLargest-shareholder ownership change report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Amended filing
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-12OwnershipLargest-shareholder ownership change report
- 2026-05-11OwnershipLargest-shareholder ownership change report
- 2026-05-08OwnershipLargest-shareholder ownership change report
- 2026-05-07Single supply/sales contract
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
📖 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.