HD Hyundai Energy Solutions makes solar cells that convert sunlight into electricity and solar modules that bundle those cells together, selling them to power-plant, commercial, and residential installers; this is nearly the whole of its business, and the share of revenue from the U.S. market has grown quickly. U.S. revenue jumped from tens of billions of won in 2024 to the ₩160 billion range in 2025, and in March 2026 it signed a module supply contract worth ₩127.8 billion (30.3% of 2024 revenue) for the Hillsboro Solar Project in the United States. Its preliminary first-quarter results at the end of April locked in the improvement, with revenue +87.6% and a swing to operating profit. What stands out is the strength of revenue and profit rising together on the back of U.S. demand as the company shifts to a profitable footing, supported by low debt and ample cash. The caution is that solar is a cyclical industry with sharp swings in demand and price, so if U.S. policy or the pace of project construction stalls, or if reliance on a particular project grows, both volume and margin could wobble together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 16.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 87.5% higher than a year earlier.
- ROE is 10.0% (total-net basis). It is above the sector average.
- Operating margin is 8.4%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder HD Korea Shipbuilding & Offshore Engineering 53.57% (corporate)
Controlling bloc incl. related parties 53.57%
With the controlling bloc holding 54%, control is very secure but the free float is thin.
🔎 In-depth analysis
- This company's business is almost entirely making and selling solar cells that convert sunlight into electricity and solar modules that bundle multiple cells into a single panel.
- The modules it makes go mainly to power-plant, commercial, and residential installers, and lately the share of revenue from the U.S. market has grown quickly.
- In fact, U.S. revenue jumped from around tens of billions of won in 2024 to the ₩160 billion range in 2025, and in March 2026 the company signed a contract to supply ₩127.8 billion worth of modules (equivalent to 30.3% of 2024 revenue) to the U.S.
- Hillsboro Solar Project (Hillsboro Solar Project LLC).
- Tied to construction demand from domestic and overseas power projects, this is a classic manufacturing-and-export structure in which how much product is sold, and at what price, drives results.
- The latest close was ₩107,700 and the market cap is ₩1.2 trillion.
- The price sits below its 20-day line (₩133,925) and below its 60-day line (₩167,655).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing the strength of gains and losses over the past 14 days on a 0-100 scale) is 36.1, a neutral level.
- The one-month change is -27.1%, the three-month change is -36.2%, and the price is -55.9% from its 52-week high.
- Relative strength versus the KOSPI is 87 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 12% of all stocks by strength.
- Over the past three months it lagged the index by 49.4%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- The P/E ratio (how many times one year's earnings the share price represents) looks high at 36x on last year's results, but that is because 2025 was the first year of recovery just out of a loss, so the size of earnings was still small.
- For an earnings-inflection stock like this, last year's P/E overstates the real valuation, and the picture changes markedly once this year's earnings trend is factored in (see the growth section).
- The ROE (how much is earned on equity in a year) is a healthy 10.0%, and with an operating margin of 8.4% and a net margin of 8.5%, a profitable footing has taken hold.
- The balance sheet is solid: the debt ratio (debt relative to equity) is low at 27% and the current ratio (assets readily usable within a year against debt due within a year) is ample at 404%, giving room to endure a downturn.
- Over five years, revenue rose and fell with the solar cycle (₩593.1 billion in 2021, a ₩984.8 billion boom in 2022, adjustment in 2023-2024, ₩492.7 billion in 2025).
- Net profit was likewise cyclical, swinging between a ₩60.6 billion profit in 2022 and losses in 2023 and 2021.
- The turning point was 2025.
- Revenue rose 16.6% year on year, operating profit jumped from ₩3.5 billion to ₩41.2 billion, and net profit leapt from essentially breakeven to ₩41.7 billion, bringing profitability back onto a normal track.
- The first quarter of 2026 shows the inflection especially clearly: revenue of ₩159.9 billion (+87.6% year on year), operating profit of ₩29.0 billion (a swing from a loss a year earlier, +99.8% versus the prior quarter), and net profit of ₩22.2 billion, with the Q1 operating margin climbing to 18.1%.
- The result reflects construction demand from U.S. power projects combined with a preference for non-Chinese supply chains, improving volume and margin at the same time.
- Carrying this quarter's earnings level through the full year, this year's earnings are likely to comfortably exceed last year's ₩41.7 billion.
- On that basis, the P/E that looked high at 36x on last year's numbers falls to the high-teens on this year's earnings, leaving a wide gap between the headline figure and the real valuation.
- The disclosure story reads along three threads.
- First, in March 2026 the company signed a single sales and supply contract to supply ₩127.8 billion of modules (30.3% of 2024 revenue) to the U.S.
- Hillsboro Solar Project, so the expansion of U.S. revenue was confirmed by contract.
- Second, the preliminary first-quarter results disclosed at the end of April locked in the improvement with revenue +87.6% and a swing to operating profit.
- Third, routine filings such as the March business report, the annual general meeting, and the May corporate governance report proceeded on schedule, revealing no unusual governance or reporting risk.
- That said, changes in U.S. solar policy (tax credits and foreign-entity-of-concern rules) could cut both ways on demand and margin, so policy developments remain a point to keep watching.
- The strengths to watch are clear.
- On the back of U.S. demand, revenue and profit are rising together as the company shifts to a profitable footing, supported by a balance sheet with low debt and ample cash.
- Even if the P/E looks high on last year's numbers, factoring in this year's earnings trend makes the valuation burden far lighter than the headline figure suggests.
- The cautions are equally clear.
- Solar is a cyclical industry with sharp swings in demand and price, so if U.S. policy and the pace of power-project construction stall, both volume and margin could wobble together.
- The growing reliance on the U.S. and on particular projects is a double-edged sword.
- In short, as long as U.S. solar demand and a preference for non-Chinese supply chains hold, the earnings-improvement momentum is strong; if those conditions weaken, the risk of a cyclical downturn rises alongside.
🔎 Valuation vs peers Fairly valued
Compared against listed companies in Korea whose solar and energy businesses overlap in character, though the large peers mix chemicals and holding-company operations and are not exactly the same as pure solar cell and module manufacturing.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Solutions | 0.00x | 0.58x | -7.15% |
| OCI Holdings | 0.00x | 0.87x | -2.29% |
The comparison peers Hanwha Solutions and OCI Holdings mix chemicals and holding-company operations and recently posted consolidated losses, so a P/E cannot even be computed for them, whereas HD Hyundai Energy Solutions turns a profit in its pure solar business and posts a 10% ROE, giving it the edge on profitability. The P/E of 36x and P/B of 3.59x on last year's results look high, but that is because 2025 was the first year of recovery out of a loss and earnings were small. Factoring the improvement seen in Q1 (operating profit of ₩29.0 billion and net profit of ₩22.2 billion) into this year's earnings makes the real valuation burden far lighter than the headline figures. Considering both the balance-sheet strength and the earnings improvement, the current price reads as within a fair range rather than excessively overvalued. That said, solar's characteristic demand and policy volatility is large, so any re-valuation hinges on whether U.S. demand and margins are sustained.
Price history Close · MA20 · MA60
The latest close is ₩107,700 and the market capitalization is ₩1.2 trillion. The price sits below its 20-day moving average (₩133,925) and below its 60-day moving average (₩167,655). 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 36.1, a neutral level. The one-month change is -27.1%, the three-month change is -36.2%, and the position relative to the 52-week high is -55.9%. Relative strength versus the KOSPI is 87 (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 88% of all stocks. Over the past three months it lagged the index by 49.4%. 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 -49.40% / 6M +15.24% / 12M +2.17%
Key metrics vs whole-market median
Valuation
The P/E of 28.94x is above the whole-market median (13.81x). The P/B of 2.89x is above the whole-market median (1.15x).
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 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.0%, above the whole-market average (5.0%). The operating margin is 8.4%. The debt ratio is 27.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $362.0M | $279.9M | $326.5M | +16.64% ↑ faster |
| Operating profit | $11.6M | $2.3M | $27.3M | +1076.88% ↑ faster |
| Net profit | -$1.9M | $75,708 | $27.6M | +36385.38% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $393.1M | $652.7M | $362.0M | $279.9M | $326.5M |
| Operating profit | $6.3M | $59.8M | $11.6M | $2.3M | $27.3M |
| Net profit | -$4.4M | $40.2M | -$1.9M | $75,708 | $27.6M |
| Revenue CAGR | 4-yr avg -4.54% | ||||
Revenue rose 16.6% year over year (2023 ₩546.1 billion → 2024 ₩422.4 billion → 2025 ₩492.7 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 1076.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.5%. The two-year revenue CAGR is -5.0%. In the most recent quarter (Q1 2026), revenue was 87.5% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 16.6% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-30UpdateSigned a solar module supply contract worth ₩127.8 billion (30.3% of 2024 revenue) for the U.S. Hillsboro Solar Project (Hillsboro Solar Project LLC), with a supply period from 2026-03-30 to 2027-03-17.Confirms the expansion of U.S. revenue by contract. A medium-term positive that improves visibility on this year's revenue and utilization. Source
- 2026-04-29EarningsPreliminary Q1 2026 consolidated results: revenue of ₩159.9 billion (+87.6% year on year), operating profit of ₩29.0 billion (a swing from a loss a year earlier; +99.8% versus the prior quarter), and net profit of ₩22.2 billion.Confirms the earnings inflection in numbers. A short-term positive, with the Q1 operating margin of 18.1% showing a clear improvement in profitability. Source
- 2026-05-15FilingFiled the Q1 2026 quarterly report (as of March 2026) — a disclosure that finalizes the detailed financials following the preliminary results.A basis for confirming the finalized financials against the preliminary figures. Neutral-to-positive on the reliability of results. Source
- 2026-03-13FilingFiled the 2025 business report (as of December 2025) — confirming annual revenue of ₩492.7 billion, operating profit of ₩41.2 billion, and net profit of ₩41.7 billion, cementing the return to a profitable footing.Confirms the first-year recovery results. Serves as the baseline for judging subsequent quarterly improvement. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | 1,599 | 159,891 | Confirmed | link |
| Q1 2026 operating profit | 290 | 29,019 | Confirmed | link |
| U.S. module supply contract size | base ·approx. | 1,278 = 2024 revenue 30.3%, approx. Hillsboro Solar Project LLC | Confirmed | link |
| 2026 net profit outlook (forward) | approx. 780 (self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-29EarningsFair-disclosure notice
- 2026-03-31Single supply/sales contract
- 2026-03-23Disclosure
- 2026-03-23Shareholders' meeting notice
- 2026-03-13PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-02-27Large-business-group status disclosure
- 2026-02-26Amended filing
📖 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.