HD Hyundai Construction Equipment makes and sells heavy construction and mining machinery such as excavators and wheel loaders. Overseas revenue makes up a large share, and it also earns steadily from the parts-and-service aftermarket. On January 1, 2026 it absorbed HD Hyundai Infracore, adding a high-margin industrial and defense engine segment (Q1 revenue ₩336.1 billion, operating profit ₩47.3 billion) to the construction-equipment segment (Q1 revenue ₩1.9275 trillion). Its first report card after the merger, the Q1 provisional results, confirmed synergy with an operating margin of 8.3%, above the annual target (5-7%), and on the same day it disclosed a value-up plan targeting revenue of ₩14 trillion and ROE of 15% or more by 2030 while maintaining a 30% shareholder-return ratio. The points to weigh are the strengths: the merger gives it scale that spans high-margin engines, and operating profit rose 88% in the very first combined quarter, an undervaluation signal from an earnings inflection. Against that, construction equipment is sensitive to the global economy and currency, so if investment in North America, Europe, and emerging markets slows, both demand and profit are pressured together.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 9.8% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 154.2% higher than a year earlier.
- ROE is 5.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.5%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder HD Hyundai Site Solution 37.59% (corporate)
Controlling bloc incl. related parties 41.06%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis
- HD Hyundai Construction Equipment makes and sells heavy construction and mining machinery such as excavators and wheel loaders.
- Overseas revenue in regions such as North America, Europe, and emerging markets makes up a larger share than domestic, and it earns steadily not only from equipment sales but also from the aftermarket (AM), such as parts and service.
- On January 1, 2026 it absorbed HD Hyundai Infracore, a same-group maker of excavators and engines (with Infracore as the extinguished company), becoming a single company.
- As a result the business splits into two branches: one is the construction-equipment segment, which still accounts for most of revenue (Q1 2026 revenue ₩1.9275 trillion), and the other is the industrial and defense engine segment carried over from Infracore (revenue ₩336.1 billion in the same quarter).
- The engine segment is small in scale but has a higher margin than construction equipment (Q1 operating profit ₩47.3 billion), supporting overall profitability.
- Since the two companies originally overlapped on 70-80% of their excavator and wheel-loader product lines, the core strategy after the merger is to cut duplicate production and purchasing and to lower costs by fitting more of its own engines.
- The recent close is ₩121,200 and the market cap is ₩5.8 trillion.
- The price sits below the 20-day line (₩129,720) and below the 60-day line (₩154,903).
- Trading beneath both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 39.6, a neutral level.
- The one-month change is -16.0%, the three-month change is -18.0%, and the position versus the 52-week high is -38.8%.
- Relative strength against the KOSPI is 45 (on a 1-99 scale that weights recent returns versus the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 56% of all stocks by strength.
- Over the past three months it lagged the index by 39.3%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- On the surface the P/E ratio (how many times one year's net profit the share price represents) of 60.6x and the P/B (how many times the company's net assets the share price represents) of 3.33x look high.
- But this P/E is calculated on the standalone net profit (₩99.4 billion) of the old HD Hyundai Construction Equipment in 2025, before the merger, which was weak, so it does not reflect the current combined entity's strength.
- In other words, it is close to an illusion of "a big multiple because last year's profit was so small." In fact, Q1 2026 operating profit alone, at ₩190.7 billion, already exceeded the full year's operating profit last year (₩170.9 billion) in a single quarter, and net profit at ₩173.9 billion also already topped last year's full-year figure.
- ROE (how much it earns in a year on shareholders' equity) is still low at 5.5% on a 2025 basis, but the company targets 15% or more by 2030.
- The debt ratio (debt against equity) of 199.6% is a normal level for heavy manufacturing, and with a current ratio (cashable assets against debt due within a year) of 200%, short-term solvency is stable.
- The dividend yield is around 0.4% (₩550 per share).
- In sum, the high trailing figures are an illusion at a moment when profit has just inflected, and on post-merger earnings the valuation burden is not heavy.
- Over five years revenue rose gently from ₩3.3 trillion in 2021 to ₩3.8 trillion in 2025.
- Operating profit fell for two years, from ₩257.2 billion in 2023 to ₩190.4 billion in 2024 and ₩170.9 billion in 2025, reflecting the demand-adjustment phase the construction-equipment industry has passed through.
- The inflection point is 2026.
- With the merger reflected, Q1 2026 revenue was ₩2.3049 trillion, operating profit ₩190.7 billion (operating margin 8.3%), and net profit ₩173.9 billion.
- Compared on the same basis including Infracore, revenue rose +22.1%, operating profit +88.3%, and net profit +193.4%, showing that profitability improved substantially beyond a simple merger scale effect.
- The 141.9% jump in construction-equipment operating profit is especially large.
- The company's stated 2026 annual targets are revenue of ₩8.7-9.0 trillion and an operating margin of 5-7%, and the Q1 results are a start above those targets.
- If this earnings strength continues through the full year, then unlike the high P/E on last year's net profit, on this year's earnings the multiple becomes far lower.
- This is not a one-off flash quarter but normalized profit supported together by the broader revenue base from the merger, recovering overseas demand, and high-margin engine profit.
- On that premise the company set medium-term targets of ₩14 trillion in revenue by 2030 (about 12% annual growth), ROE of 15% or more, and an operating margin of 11% or more.
- The biggest event was the absorption of HD Hyundai Infracore carried out on January 1, 2026, which added the industrial and defense engine business to construction equipment and greatly enlarged the scale of revenue and profit.
- The first report card after the merger, the Q1 provisional results (fair disclosure on April 27), confirmed integration synergy in numbers with an operating margin of 8.3%, above the company's annual target (5-7%).
- On the same day the company disclosed a value-up plan setting medium-term targets of maintaining a 30% shareholder-return ratio and reaching ₩14 trillion in revenue, ROE of 15% or more, and an operating margin of 11% or more by 2030.
- It also signed a treasury-stock acquisition trust contract in February 2026 and has been buying back its own shares, and in May it explained results and merger synergy at an IR (investor briefing).
- As a risk, the fact that construction-equipment results can swing with the global economy, currency, and geopolitical uncertainty remains a constant.
- The strengths are distinct.
- The merger gives it scale spanning excavators and wheel loaders plus a high-margin engine business, and from the very first combined quarter operating profit rose 88% (compared on the same basis), so synergy showed up in the numbers.
- The high P/E on last year's profit becomes considerably lower on this year's earnings, which is close to the undervaluation signal that often appears in phases where profit springs sharply off a trough.
- That the company formalized concrete targets of ₩14 trillion in revenue, 15% ROE, and an 11% operating margin by 2030, along with 30% shareholder returns and treasury-stock buybacks, also shows its resolve on both earnings normalization and shareholder returns.
- On the other side, the point to watch is that construction equipment is inherently a business sensitive to the global economy.
- If construction and infrastructure investment in North America, Europe, and emerging markets slows, or currency moves unfavorably, demand and profit can be pressured together.
- Q1 net profit grew far faster than operating profit partly because of seasonality and non-operating factors, so it is hard to assume that this pace continues unchanged every quarter.
- In short, this is a classic cyclical growth stock that is strong when global demand recovery and engine synergy hold, and weak when the construction cycle turns down.
🔎 Valuation vs peers Undervalued
Compared against the same business group of makers of construction and mining heavy machinery such as excavators and wheel loaders. Among domestic listed peers, Doosan Bobcat (compact and construction equipment) is the closest, and with the engine business added it also takes on some industrial-engine characteristics; the same-group excavator and engine maker HD Hyundai Infracore was merged into the parent in 2026 and is excluded from the comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Doosan Bobcat | 20033.33x | 1149.14x | 5.64% |
(a) Compared with Doosan Bobcat in the same construction-equipment business group, ROE is similar in the mid-5% range, but Doosan Bobcat's on-site P/E and P/B figures are clear unit outliers, so a direct multiple comparison is unreliable and the judgment is based mainly on business substance. (b) Through the merger, HD Hyundai Construction Equipment added high-margin engines to construction equipment, improving its scale and profit mix. (c) The surface P/E of 60.6x comes from the weak standalone 2025 net profit (₩99.4 billion) before the merger, so it is an illusion that does not reflect the combined entity's actual earnings strength. In Q1 2026 alone it earned ₩173.9 billion in net profit, already exceeding last year's full-year figure, and on this year's earnings the multiple falls sharply. Taking together the phase of profit rebounding sharply off a trough and the value-up targets, on this year's earnings it is judged to be in an undervalued range trading at a low multiple. That said, given its high sensitivity to the construction cycle, this picture can change quickly if demand slows.
Price history Close · MA20 · MA60
The latest close is ₩121,200 and the market capitalization is ₩5.8 trillion. The price sits below its 20-day moving average (₩129,720) and below its 60-day moving average (₩154,903). 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 39.6, a neutral level. The one-month change is -16.0%, the three-month change is -18.0%, and the position relative to the 52-week high is -38.8%. Relative strength versus the KOSPI is 45 (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 44% of all stocks. Over the past three months it lagged the index by 39.3%. 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 -39.34% / 6M -31.56% / 12M -38.19%
Key metrics vs whole-market median
Valuation
The P/E of 58.44x is above the whole-market median (13.81x). The P/B of 3.22x 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 5.5%, in line with the whole-market average (5.0%). The operating margin is 4.5%. The debt ratio is 199.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.5B | $2.3B | $2.5B | +9.84% ↑ faster |
| Operating profit | $170.5M | $126.2M | $113.3M | -10.26% ↑ faster |
| Net profit | $92.4M | $66.3M | $65.9M | -0.59% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.2B | $2.3B | $2.5B | $2.3B | $2.5B |
| Operating profit | $106.5M | $113.1M | $170.5M | $126.2M | $113.3M |
| Net profit | $75.2M | $73.9M | $92.4M | $66.3M | $65.9M |
| Revenue CAGR | 4-yr avg 3.55% | ||||
Revenue rose 9.8% year over year (2023 ₩3.8 trillion → 2024 ₩3.4 trillion → 2025 ₩3.8 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 10.3% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.5%. The two-year revenue CAGR is -0.6%. In the most recent quarter (Q1 2026), revenue was 154.2% 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
- 2026-01-01FilingHD Hyundai Construction Equipment absorbed HD Hyundai Infracore (Infracore extinguished), launching as the combined entity "HD Hyundai Construction Equipment." The industrial and defense engine business was added to construction equipment.Revenue scale nearly doubles and it secures a high-margin engine business. The basis for comparing subsequent quarterly results shifts to the combined entity (medium-to-long-term structural growth). Source
- 2026-04-27EarningsQ1 2026 consolidated provisional results (fair disclosure): revenue ₩2.3049 trillion, operating profit ₩190.7 billion (operating margin 8.3%), net profit ₩173.9 billion. Construction-equipment operating profit +141.9%, with the engine segment also growing.From the first quarter after the merger it achieved 8.3%, above the company's annual target (operating margin 5-7%). Integration synergy is confirmed in the results. Source
- 2026-04-27FilingValue-up plan (voluntary disclosure): maintaining a 30% shareholder-return ratio and setting targets for 2030 of ₩14 trillion in revenue (about 12% annual growth), ROE of 15% or more, and an operating margin of 11% or more.Reflecting the merger, it raises medium-term growth, profitability, and shareholder-return targets. It spells out its long-term direction and resolve on shareholder returns. Source
- 2026-05-11FilingReport on acquisition status under a trust contract: after signing a treasury-stock acquisition trust contract on February 6, 2026, it has steadily bought back its own shares.Backs the policy of maintaining a 30% shareholder-return ratio with treasury-stock buybacks. Reduces the free float to complement shareholder value. Source
- 2026-05-15FilingQ1 2026 quarterly report formally filed (financials confirmed on a consolidated basis).Confirms the Q1 figures announced as provisional results in formal financial statements. A primary source for checking the merger accounting reflected. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| ROE (2025) | 5.5% | 5.7% | Confirmed | link |
| Q1 2026 operating profit | ₩190.7 billion(base quarter op_income) | ₩190.7 billion | Confirmed | link |
| 2025 payout ratio | 26.5%(base payout_ratio 0.265) | 26.5% | Confirmed | link |
| 2026 annual revenue (outlook) | self-estimate approx. ₩8.9 trillion | 8.7~₩9.0 trillion | Confirmed | link |
Recent filings
- 2026-06-02PeriodicQuarterly report (amended)
- 2026-06-02PeriodicAnnual business report (amended)
- 2026-06-01Disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Disclosure
- 2026-05-11Disclosure
- 2026-05-06Disclosure
- 2026-04-27Disclosure
- 2026-04-27Disclosure
- 2026-04-27EarningsFair-disclosure notice
📖 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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