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HD Hyundai Heavy Industries (329180) 🔎 In-depth

KOSPI · Price as of 2026-08-06 · Updated 2026-08-09

Compiled and reviewed by Bing Bing · Figures are computed automatically from public filings and market data; the written analysis is drafted automatically and then rule-verified · Methodology · AI Disclosure · Report an error

HD Hyundai Heavy Industries is a shipbuilder that constructs crude-oil carriers, container ships and LNG carriers as well as naval vessels. Shipbuilding accounts for 77% of revenue, with the engine and machinery unit — which makes marine engines under the HiMSEN brand and power-generation equipment — adding another 15%. In the second quarter of 2026 revenue was ₩6.3322 trillion and operating profit ₩1.0399 trillion, the first time quarterly operating profit has passed ₩1 trillion, and the order backlog stood at ₩62.1708 trillion at the end of March, more than two years of work in hand. The key point to watch is that vessels contracted when prices were favourable are now flowing into revenue and lifting margins in steps, while safety problems — a fatal accident in July halted production across all plants twice — remain a variable for results.

This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.

30-second brief

Earnings trend
revenue and profit are growing strongly.
Financials
financial metrics are around average.
Data as of
prices as of 2026-08-06, financials as of 2026 1분기.

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

P/B (price-to-book)5.48x

This stock's effective sub-sector is “Shipbuilding” (Shipbuilding, Machinery, Defense & Power Equipment), a type typically read first through P/B.

Shipbuilding rides a heavy vessel-ordering cycle, with profits bunching in upturns and slipping into losses in downturns, so current-year earnings alone give an unstable read. That makes price-to-book (P/B) — the share price against the value of docks and facilities the company owns — the first lens.

Forward P/E (current-year estimate)15.16x

Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.

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

Financial healthModerate
  • Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 99.1%).
GrowthHigh growth
  • Revenue rose 21.4% year over year, and the pace is quickening (3-year trend: rising).
  • Most recent quarter (Q1 2026) revenue was 54.8% higher than a year earlier.
ProfitabilityStrong
  • ROE is 19.6% (controlling-interest basis). It is above the sector average.
  • Operating margin is 12.8%.
ValuationUndervalued
  • A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.

Ownership & governance As of 2025-12-31

Largest shareholder HD Korea Shipbuilding & Offshore Engineering 69.23% (corporate)

Controlling bloc incl. related parties 69.3%

With the controlling bloc holding 69%, control is very secure but the free float is thin.

🔎 In-depth analysis Reading

🏢Business

This company builds ships and also makes the engines that go into them. Of the ₩5.9163 trillion in consolidated first-quarter 2026 revenue, shipbuilding accounted for ₩4.5598 trillion, or 77.1%. It constructs merchant vessels — crude-oil carriers, container ships, product tankers, LNG carriers and LPG carriers — along with naval ships at its Ulsan shipyard. The second pillar is engines and machinery at ₩878.9 billion (14.9%), where it makes marine engines under its own 'HiMSEN' brand plus diesel power generation equipment, pumps and fluid machinery, supplying other shipyards and power producers as well. Third is offshore plant — building offshore oil and gas production facilities — at ₩458.0 billion (7.7%). How the money is earned matters. A ship is built over two to three years after the order is taken, and payment is received in instalments as construction progresses. So the profit booked this year is largely determined by the price at which contracts were signed two or three years ago. That is exactly why current results are improving.

📈Price & chart

The latest close is ₩507,000 and the market capitalization is ₩53.2 trillion. The price sits above its 20-day moving average (₩476,875) and below its 60-day moving average (₩587,758). 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 49.8, a neutral level. The one-month change is -8.2%, the three-month change is -21.8%, and the position relative to the 52-week high is -31.9%. Relative strength versus the KOSPI is 20 (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 20% of all stocks. Over the past three months it lagged the index by 13.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

📊Key metrics

In shipbuilding the first metric to look at is P/B (how many times the company's book value the shares trade at). Profit swings hard with the cycle, so judging on a single year's earnings is unstable; measuring the share price against asset value such as docks and equipment is the steadier approach. The P/B of 5.29x shown on screen is based on end-2025 shareholders' equity of ₩9.3416 trillion. But equity in the first-quarter 2026 report had risen to ₩9.7132 trillion, and recalculating on that confirmed figure gives a P/B of about 5.1x. Adding the ₩1.5960 trillion of confirmed first-half net profit takes end-June equity above ₩10 trillion, so if the share price stays where it is the P/B comes down to the high-5.70x area. The price is still on the high side against assets among shipbuilding peers, but this is a stretch in which net assets are compounding quickly from profit and the multiple is falling on its own. On financial stability, the raw numbers look cautionary: the current ratio (assets convertible to cash within a year against debts due within a year) is 97.7%, below 100%. But a shipbuilder's current liabilities include large advances received from owners before construction begins. Rather than debt that must be repaid in cash, these are items that will turn into revenue as ships are delivered. The actual cash position is closer to the opposite: the company holds ₩1.8332 trillion more cash than debt, a net cash position, and cash and cash equivalents at the end of the first quarter were ₩2.9755 trillion, up sharply from ₩1.8699 trillion at the end of 2025. On profitability, 2025 showed ROE (return on equity — how much was earned in a year on the money shareholders put in) of 15.2% and an operating margin of 11.6%. This year, though, the first half alone produced net profit of ₩1.5960 trillion, already above the ₩1.4155 trillion earned for all of 2025. The speed at which profit is generated relative to equity has picked up markedly. Enterprise value (EV) metrics sharpen the picture. EV is market capitalization plus net debt, close to what it would cost to acquire the company outright. Here net debt is negative ₩1.8332 trillion — more cash than debt — so EV is smaller than market capitalization, an unusual case. That said, EV/EBIT of 29.5x, EV/EBITDA of 25.4x and EV/Sales of 3.4x are all calculated on confirmed 2025 results and do not yet capture a year in which profit has more than doubled. On cash flow, free cash flow (operating cash less capital expenditure) is ₩2.9689 trillion, and the FCF yield against company value is 4.79%. Interest coverage of 1.61x looks low, but it should be read alongside the net cash position and first-half pre-tax profit of ₩2.2128 trillion.

🚀Growth

Start with the long view. Revenue grew from ₩8.3113 trillion in 2021 to ₩9.0455 trillion in 2022, ₩11.9639 trillion in 2023, ₩14.8645 trillion in 2024 and ₩17.5806 trillion in 2025, a five-year average of 20.6% a year. Profit is more dramatic. Operating profit went from losses of minus ₩800.3 billion in 2021 and minus ₩289.2 billion in 2022 to a positive ₩178.6 billion in 2023, then ₩705.2 billion in 2024 and ₩2.0375 trillion in 2025. Net profit rose from ₩24.7 billion in 2023 to ₩1.4155 trillion in 2025. This is the result of working off low-priced orders and then booking revenue from the higher-priced contracts signed after 2023. The quarterly trend is steeper still. The first quarter of 2026 brought revenue of ₩5.9163 trillion (+54.8% year over year), operating profit of ₩905.4 billion (+108.7%) and net profit of ₩773.8 billion (+172.3%). The second quarter brought revenue of ₩6.3322 trillion (+52.7%), operating profit of ₩1.0399 trillion (+120.6%) and net profit of ₩822.1 billion (+289.8%), with quarterly operating profit passing ₩1 trillion for the first time. The operating margin moved up another notch, from 15.3% in the first quarter to 16.4% in the second. First-half cumulative figures are revenue of ₩12.2485 trillion (+53.7%), operating profit of ₩1.9453 trillion (+114.9%) and net profit of ₩1.5960 trillion (+222.4%). Three things underpin the outlook. First, the work is already secured. The order backlog at the end of March was ₩62.1708 trillion (shipbuilding ₩49.0753 trillion, offshore plant ₩2.2142 trillion, other ₩10.8813 trillion), more than 3.5 times 2025 revenue. In the first quarter alone ₩11.7026 trillion of new work came in, lifting the backlog from ₩56.3845 trillion. Second, new work keeps accumulating. The company disclosed cumulative January-June orders of $14.771 billion, up 84.6% from $8.0 billion a year earlier, of which shipbuilding was $12.209 billion, up 121.9%. Third, the share of revenue from favourably priced contracts grows as the year progresses. The 1.1 percentage point rise in operating margin from the first to the second quarter is the evidence, and there is room for further improvement in the same direction in the third and fourth quarters. Combining these three, estimated 2026 profit puts the P/E ratio at 13.4x. The wide gap versus the 34.89x calculated on last year's confirmed profit exists because last year's numbers belong to a phase that has already passed.

📰Recent news & filings

News pointing in opposite directions arrived over the past two months. On results and shareholder returns the picture was clearly good. Preliminary second-quarter figures on July 29 showed quarterly operating profit above ₩1 trillion for the first time, and on the same day the company approved a quarterly dividend of ₩6,090 per share, ₩639.0 billion in total, with a record date of August 13 and payment due August 31. Orders also continued. On June 30 it signed contracts with an Asian shipowner for one FSRU (a facility that regasifies LNG at sea and supplies it onshore) at ₩492.8 billion and with an Oceanian shipowner for one LNG carrier at ₩392.2 billion, and on July 8 a contract with a Middle Eastern shipowner for six car carriers at ₩469.9 billion. Each is equal to 2.2-2.8% of 2025 revenue. Portfolio housekeeping is under way as well. On June 26 the company approved the disposal of the Gunsan shipyard's real estate and movable property in full — plant, dormitory, technical training centre and more — for ₩780.0 billion. That is 2.98% of total assets; the stated purpose is to improve efficiency by clearing non-core assets, with ownership due to transfer on December 31. On the other side is safety. On July 24 a worker died in a crushing accident at the Gunsan shipyard's panel plant, and the next day a partial work-stoppage order was issued for the entire assembly line. On July 19 there had also been a partial work-stoppage order in Ulsan involving a gondola. The company halted production at all plants twice — July 21-22 and July 29-31 — for special safety training and inspections across all sites, and disclosed plans to resume on August 1. Separately, on June 19 the company said it had signed a framework agreement with TerraPower of the United States on the supply of main equipment for commercial small modular reactors (SMRs) and had been granted preferred-negotiator status. Individual contracts are not yet finalized, and the company said it would disclose again by September 18.

🧭Bottom line

Start with what is worth noting. First, the direction of profit is clear. First-half operating profit of ₩1.9453 trillion filled 95% of the full-year 2025 figure of ₩2.0375 trillion in half a year, and the operating margin rose from 15.3% to 16.4%. With the share of favourably priced work still increasing, there is room left for further improvement. Second, visibility on work is high. The ₩62.1708 trillion backlog at the end of March is more than 3.5 times last year's revenue, and first-half new orders rose 84.6%. In shipbuilding the gap between contract and revenue is two to three years, so work already secured forms the backbone of future results. Third, financial headroom is ample: cash exceeds debt by ₩1.8332 trillion, and cash generation is strong enough to pay a dividend every quarter. The cautions are equally clear. First, safety. In July alone serious accidents came one after another, production at all plants stopped twice, and work-stoppage orders continue on some lines. A few days of downtime is not large in itself, but if it repeats it can affect delivery schedules and costs, and the regulatory burden grows. Second, ship prices have already run up once and are now pausing. Market prices in the first-quarter report show a 174,000-cbm LNG carrier at $248.5 million, below the $260 million of 2024, and a 23,000-TEU container ship at $234 million, under the $244 million of 2024. Today's profit improvement comes not from new contract prices rising further but from working through volume secured earlier at good prices. Third, shipbuilding is a cyclical industry in which profit swings widely with new orders and exchange rates. If ordering cools or the won strengthens, today's margin assumptions can change. Fourth, the price against assets (P/B) is on the high side among shipbuilding peers, so if profit improvement does not continue as expected, that premium is the first thing to wobble.

🔎 Valuation vs peers Undervalued

The comparison set is Korea's large shipbuilders plus the intermediate holding company that owns shipbuilding affiliates. All build merchant and specialized vessels and are exposed to the same ordering cycle, newbuilding prices and currency effects.

PeerP/EP/BROE
Samsung Heavy Industries35.65x4.31x12.31%
Hanwha Ocean22.31x4.07x22.43%
HD Korea Shipbuilding & Offshore Engineering13.06x2.09x19.91%

Start with position. The P/E of 37.60x calculated on last year's confirmed profit is similar to Samsung Heavy Industries at 33.72x and above Hanwha Ocean at 20.41x and HD Korea Shipbuilding & Offshore Engineering at 12.03x. But that 34.89x is calculated on 2025 profit, and there is a wide timing gap versus today, with the first half alone producing operating profit of ₩1.9453 trillion and net profit of ₩1.5960 trillion — already above full-year 2025 net profit. On estimated 2026 profit the P/E becomes 13.4x. With profit still climbing in steps and net cash on top, that multiple sits below what shipbuilding peers carry on confirmed earnings. Fairness requires looking at the other side too. On P/B, the metric to check first in shipbuilding, it is 5.70x (on confirmed end-March equity), above Samsung Heavy Industries at 4.43x and Hanwha Ocean at 4.12x, and a wide gap above HD Korea Shipbuilding & Offshore Engineering at 1.96x. Against assets, then, a premium is attached. That premium does have a basis: net assets are compounding quickly from profit, so the multiple is falling on its own, and reflecting first-half profit brings it down to the high-4x range. The limits of confirmed-earnings metrics also deserve mention. EV/EBIT of 29.5x and EV/EBITDA of 25.4x are both calculated on 2025 results and do not reflect a year in which profit has more than doubled, which is why forward multiples belong alongside them. Those estimates do lean on second-half margin assumptions, however, and could change if ordering cools or currencies move unfavourably. HD Korea Shipbuilding & Offshore Engineering's low multiples partly reflect its structure as the owner of several shipbuilding subsidiaries, so a straight comparison calls for care.

₩507,000 -0.39%
Market cap $37.4B

Price history Close · MA20 · MA60

Close MA20MA60

The latest close is ₩507,000 and the market capitalization is ₩53.2 trillion. The price sits above its 20-day moving average (₩476,875) and below its 60-day moving average (₩587,758). 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 49.8, a neutral level. The one-month change is -8.2%, the three-month change is -21.8%, and the position relative to the 52-week high is -31.9%. Relative strength versus the KOSPI is 20 (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 20% of all stocks. Over the past three months it lagged the index by 13.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

Relative performance stock vs index · start = 100

20Relative strength vs KOSPI1–99 · last 12 months’ return vs the index, recency-weighted · higher = stronger than the marketTop 80% strength

Excess return vs index · 3M -12.97% / 6M -27.40% / 12M -44.36%

StockKOSPI

Key metrics Computed vs sector median

Valuation

P/E (trailing)37.60x
Forward P/E15.16x
P/B5.48x
Forward P/B4.50x
P/S3.02x
EPS₩13,486
BPS (book value/share)₩92,541
Dividend yield1.12%
DPS₩5,661

The P/E of 37.60x is above the sector median (12.80x). The P/B of 5.48x is above the sector median (1.61x). 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)

Net debt-$1.3B
EV (enterprise value)$36.1B
EV/EBIT20.48x
EV/EBITDA21.68x
EV/Sales2.61x
FCF (free cash flow)$2.1B
FCF yield5.58%

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.

Bear case₩770,200
Base case₩1,069,200
Bull case₩1,611,800

DCF (discounted cash flow) estimate — discount rate 11.3%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 2.48x. A reference range that shifts materially with assumptions.

Confidence: Low (bull–bear span 79% of the base case) · Most sensitive assumption: discount rate — a 1%p change moves the base case by roughly 10–20% · Financial basis: FY2025 statements

Profitability & financials

ROE19.61%
Operating margin12.75%
Net margin9.68%
Debt ratio183.91%
Payout ratio40.00%

Return on equity (ROE) is 19.6%, above the sector average (13.0%). The operating margin is 12.8%. The debt ratio is 183.9%, so the financial structure is moderate.

Growth FY2025 · annual report (consolidated)

Item202320242025YoY
Revenue$8.4B$10.2B$12.4B+21.36% ↑ faster
Operating profit$125.5M$495.4M$1.4B+188.92% ↓ slower
Net profit$17.3M$436.6M$994.4M+127.75% ↓ slower
5-year20212022202320242025
Revenue$5.8B$6.4B$8.4B$10.2B$12.4B
Operating profit-$562.2M-$203.1M$125.5M$495.4M$1.4B
Net profit-$572.0M-$247.3M$17.3M$436.6M$994.4M
Revenue CAGR4-yr avg 20.60%

Revenue rose 21.4% year over year (2023 ₩12.0 trillion → 2024 ₩14.5 trillion → 2025 ₩17.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 188.9% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 20.6%. The two-year revenue CAGR is 21.2%. In the most recent quarter (Q1 2026), revenue was 54.8% higher than the same period a year earlier.

Latest quarterly results Source Q1 2026 · vs year-ago

Revenue$4.2B
Revenue YoY+54.78%
Operating profit$636.0M
Op. profit YoY+108.74%
Net profit$543.6M
Net profit YoY+172.25%

Technical indicators Computed

RSI (14)49.8
MA20₩476,875
MA60₩587,758
1-month-8.15%
3-month-21.76%
vs 52-wk high-31.95%

What stands out

  • ROE of 19.6% points to solid profitability.
  • Revenue grew 21.4% 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

Figure cross-check computed ↔ external

MetricComputedExternalStatusSource
Second-quarter 2026 consolidated operating profitbase 2026 1(operating profit ₩905.4 billion)1₩39.9 billion, 1₩945.3 billionConfirmedlink
Recalculation of P/B, the key sub-sector metric5.29x2026 3 9₩713.2 billion approx. 5.1xConfirmedlink
Order backlog as of 2026-03-31base62₩170.8 billion. 56₩384.5 billion + 11₩702.6 billion - 5₩916.3 billionConfirmedlink
Dividend per share₩5,661₩6,090Confirmedlink
P/E ratio on estimated 2026 profit13.4x(self-estimate)Unverifiedlink

Recent filings Source

📖 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.