HD Hyundai Electric makes power equipment used to send and distribute electricity, including transformers, switchgear, circuit breakers, and motors, with profits concentrated in the ultra-high-voltage transformers that feed the U.S. transmission grid and AI data centers. In 2025 it posted revenue of ₩4.08 trillion, operating profit of ₩995.3 billion (a 24.4% operating margin), and a 36.1% ROE, and the company has raised its 2026 targets to ₩4.35 trillion in revenue and US$5.185 billion in annual orders. What stands out lately is a two-sided picture: as long as a worldwide shortage of transformers lets orders be filled at high prices, margins and cash generation stay strong, but if power-grid investment slows or new capacity comes online, prices and profits could soften together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 235.1%).
- 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 36.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 24.4%.
- P/B is high versus peers, a stretch on an asset basis.
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
- HD Hyundai Electric makes the power equipment used to carry electricity over long distances (transmission) and hand it out to end users (distribution).
- Its core product is the ultra-high-voltage transformer that steps voltage up and down at power plants and substations, followed by circuit breakers that switch electricity on and off, switchgear that distributes it, and rotating machines such as motors and generators.
- It also runs marine power-equipment and battery energy-storage system (BESS) businesses.
- The center of profit right now is the ultra-high-voltage transformer: replacement of aging U.S. transmission lines has coincided with power demand from AI data centers, leaving transformers in a state where the company "can't make them fast enough to sell." The company is building a second plant in Alabama, in the United States, to expand ultra-high-voltage transformer capacity.
- The latest close is ₩815,000 and the market cap is ₩29.4 trillion.
- The price sits below its 20-day line (₩988,350) and below its 60-day line (₩1,091,000).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 33.9, a neutral reading.
- It is down 17.3% over one month and down 8.5% over three months, and it sits 42.6% below its 52-week high.
- Its relative strength versus the KOSPI is 47 (on a 1-99 scale that weights the past year's return against the index with more emphasis on recent performance; higher means stronger than the market).
- That places it in roughly the top 53% of all stocks by strength.
- Over the past three months it has lagged the index by 33.0%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- Profitability is among the very best in the power-equipment sector.
- ROE (how much a company earns in a year on its equity) is 36.1% and the operating margin (the share of revenue left as operating profit) is 24.4%, both far above peers.
- The balance sheet is in a net-cash position, with net debt (total borrowings minus cash; negative means net cash) of about ₩-878.3 billion.
- The often-quoted 235% debt ratio may look high, but that reflects how advance payments and trade payables are booked as liabilities in a manufacturing and order-driven business, and differs from interest-bearing debt.
- On valuation, the trailing P/E (how many years of earnings the price represents) is 40.1x and the P/B (how many times book equity the price represents) is 14.5x.
- EV/EBIT (enterprise value including debt divided by operating profit, a debt-adjusted cousin of the P/E) is 34.2x.
- The free-cash-flow yield (actual cash generated as a share of market cap) is around 2.1%, still low because the company is in a growth phase spending cash on new capacity.
- Growth is clear.
- Revenue climbed from ₩1.81 trillion in 2021 to ₩4.08 trillion in 2025, a compound annual rate of about 22.6% over five years.
- Profit rose even faster, from a net loss in 2021 to ₩259.2 billion in 2023, ₩501.6 billion in 2024, and ₩732.6 billion in 2025.
- In the first quarter of 2026, net profit rose 35.4% from a year earlier to ₩207.7 billion.
- The engine behind this is rising transformer prices and higher volumes.
- Because the supply shortage lets orders be filled at high prices, profit builds faster than revenue.
- The company has set a 2026 revenue target of ₩4.35 trillion and raised its annual order target from US$4.222 billion to US$5.185 billion.
- The reason this year's profit is expected to grow well above last year's confirmed ₩732.6 billion is that quarterly revenue is filling in evenly at around ₩1 trillion and the mix is shifting toward ultra-high-voltage transformers, improving margins along the way.
- Even if the trailing P/E of 40x looks high, the burden is lower on a forward-earnings basis as this year's profit grows.
- The disclosures tell a clear story.
- In March 2026 the company raised its 2027 revenue target to ₩4.74 trillion and said it would maintain a 40% shareholder-return ratio in its corporate-value enhancement plan.
- In April it declared a quarterly dividend of ₩1,300 per share, shifting to paying dividends on a quarterly basis.
- In May, through its U.S. entity, it won an order for 765kV ultra-high-voltage transformers and reactors worth ₩173.0 billion (4.24% of 2025 revenue) destined for the large U.S. transmission grids MISO and SPP.
- In July it again disclosed an outlook raising the annual order target to US$5.185 billion.
- The filings all point one way: expanding orders and stronger shareholder returns.
- Consider the strengths and cautions separately.
- The strengths are clear.
- It has the highest profitability among power-equipment peers (36.1% ROE, 24.4% operating margin), a net-cash balance sheet, and a thick order backlog.
- Replacement of the U.S. transmission grid and AI data-center demand have created a transformer shortage that puts pricing power on the company's side.
- That the company itself raised and disclosed higher revenue and order targets is further support.
- The caution is the cyclical nature of the industry.
- Right now the supply shortage lifts profit, but if global players finish adding capacity or power-grid investment slows, transformer prices and margins could soften together.
- The stock has already run up, so short-term pullbacks can be sizable.
- In short, this is a stock that is strong while the transformer shortage and U.S. power investment continue, and weakens when the opposite signals appear (new capacity releases, slowing investment).
🔎 Valuation vs peers Fairly valued
Domestic listed peers in power equipment (transformers, distribution, power infrastructure).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyosung Heavy Industries | 49.68x | 10.98x | 22.11% |
| LS Electric | 99.12x | 13.73x | 13.85% |
| Iljin Electric | 28.60x | 5.05x | 17.65% |
Compared with power-equipment peers, HD Hyundai Electric has the highest profitability. Its 36.1% ROE and 24.4% operating margin top Hyosung Heavy Industries (22.1% ROE), LS Electric (13.9% ROE), and Iljin Electric (17.6% ROE). Even so, its trailing P/E of 40.1x is lower than Hyosung Heavy Industries (48.2x) and far below LS Electric (96.0x). In other words, it has the best profitability yet its valuation sits below the middle of the peer group. A trailing P/E of 40x is high in absolute terms, but with profit rising quickly it falls to around 32x on a forward-earnings basis. At an earnings inflection point, the forward-earnings figure is closer to the real picture than the trailing multiple. On a quality-adjusted basis it reads as undervalued, but with the risk that the cycle could turn, the overall read is fairly valued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩4.35 trillion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩815,000 and the market capitalization is ₩29.4 trillion. The price sits below its 20-day moving average (₩988,350) and below its 60-day moving average (₩1,091,000). 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 33.9, a neutral level. The one-month change is -17.3%, the three-month change is -8.5%, and the position relative to the 52-week high is -42.6%. Relative strength versus the KOSPI is 47 (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 47% of all stocks. Over the past three months it lagged the index by 33.0%. 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 -33.03% / 6M -39.35% / 12M -23.37%
Key metrics vs sector median
Valuation
The P/E is 40.10x. The P/B of 14.48x is above the sector median (10.98x).
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 6.5%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.229x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 36.1%, above the sector average (22.0%). The operating margin is 24.4%. The debt ratio is 235.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.8B | $2.2B | $2.7B | +22.79% ↓ slower |
| Operating profit | $208.9M | $443.4M | $659.7M | +48.78% ↓ slower |
| Net profit | $171.8M | $332.4M | $485.6M | +46.06% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.2B | $1.4B | $1.8B | $2.2B | $2.7B |
| Operating profit | $6.5M | $88.2M | $208.9M | $443.4M | $659.7M |
| Net profit | -$22.3M | $107.7M | $171.8M | $332.4M | $485.6M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 36.1% points to solid profitability.
- Revenue grew 22.8% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-07-06FilingMaintained 2026 consolidated revenue target of ₩4.35 trillion and raised the annual order target from US$4.222 billion to US$5.185 billion (fair disclosure of forecast information via the electronic disclosure system)Strengthens medium-term visibility on revenue and orders. The higher order target is a leading signal of future revenue growth. Source
- 2026-05-07UpdateWon a ₩173.0 billion order (4.24% of 2025 revenue) for 765kV ultra-high-voltage transformers and reactors through its U.S. entity, for the U.S. MISO and SPP transmission grids, contract term 2026-05-06 to 2029-08-31Expands the near-term order backlog and secures high-margin ultra-high-voltage transformer volume over the medium term. Source
- 2026-04-28DividendDeclared a quarterly dividend (₩1,300 per common share), record date 2026-05-13, shifting to a quarterly dividend-payment structureStrengthens shareholder returns. Dividends are paid each quarter rather than once a year. Source
- 2026-03-25FilingProgress on the corporate-value enhancement plan: 2027 revenue target raised to ₩4.74 trillion, 40% shareholder-return ratio maintained, and the 2025-2027 average ROE target raised to 30% (voluntary disclosure)Sets a medium- to long-term direction for growth and shareholder returns. That the company raised its own targets is a positive. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2026 consolidated revenue target | self-estimate net profit forward PER | ₩4.35 trillion(₩4.35 trillion) | Confirmed | link |
| 2025 revenue | ₩4,079,497,658,529(base fundamentals) | ₩4,079,500,000,000 | Confirmed | link |
| Quarterly dividend per common share | base DPS ₩7,100 | ₩1,300 | Confirmed | link |
| Forward P/E on the company's own 2026 net-profit estimate | approx. 32.6x | — | Unverified | — |
Recent filings
- 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.
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