HD Hyundai Heavy Industries is Korea's largest shipbuilder, constructing large merchant vessels such as LNG carriers, large container ships and tankers, as well as naval ships; it also builds ship engines in-house, so it earns money by selling vessels and engines together. In the first quarter of 2026 it posted revenue of ₩5.9163 trillion, operating profit of ₩905.4 billion and net profit of ₩773.8 billion, with quarterly net profit up 172% year on year — the largest quarterly result since the company was established in 2019. What stands out lately is that the high-priced order backlog booked as vessel prices rose from 2023 onward is now flowing into results, lifting profit step by step; that said, building a single ship takes several years, so today's boom was made by past orders, and future profit depends on the current pace of new orders.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 97.7%).
- 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.
- ROE is 15.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.6%.
- 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 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
- HD Hyundai Heavy Industries' core business is building ships.
- It focuses on high-value merchant vessels such as LNG carriers, large container ships and tankers (including Suezmax-class), and it also builds naval ships such as submarines and destroyers.
- Unlike other shipbuilders, it has a division that produces large marine engines in-house, so a vertically integrated structure of selling vessels and engines together forms one pillar of its earnings.
- Most revenue comes from order contracts with overseas shipowners, and vessel prices (newbuilding prices) and the order backlog drive results.
- The latest close is ₩507,000 and market capitalization is ₩53.2 trillion.
- The price sits below its 20-day moving average (₩610,100) and below its 60-day line (₩629,850).
- It trades under both the short- and mid-term averages, so the trend is on the soft side.
- The RSI (a gauge that scores the strength of gains versus losses over the past 14 days on a 0–100 scale) is 31.8, a neutral level.
- The price is down 20.9% over one month, up 7.9% over three months, and sits 31.9% below its 52-week high.
- Relative strength against the KOSPI is 36 (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 near the top 64% of all stocks by strength.
- Over the past three months it lagged the index by 15.7%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Profitability has clearly improved.
- ROE (how much the company earns in a year on its equity) is 15.2%, above the peer average.
- The operating margin is 11.6% and the net margin 8.1%.
- The financial structure, though, has points worth watching.
- The debt ratio (borrowings relative to equity) is 180%, and the current ratio (assets that can be turned to cash quickly relative to debt due within a year) is 97.7%, slightly under 100%.
- This largely reflects the industry trait that advance payments received while a ship is being built are recorded as liabilities.
- Actual cash conditions are not bad — net debt (total borrowings less cash) is negative ₩1.8 trillion, a net-cash position, and the free-cash-flow yield (actual cash generated relative to market cap) is 4.8%.
- EV/EBITDA (enterprise value including debt divided by pre-depreciation profit) is 25x, still on the high side, but this should be read together with the fact that it is based on last year's earnings, from a phase where profit had only just begun to jump.
- Results have climbed out of losses and are rising quickly.
- Revenue grew at a 20.6% annual average over five years, from ₩8.3 trillion in 2021 to ₩17.6 trillion in 2025.
- Operating profit went from a ₩800 billion loss in 2021 and a ₩289.2 billion loss in 2022 to a profit in 2023, reaching ₩2.04 trillion by 2025.
- Net profit also rose to ₩1.42 trillion in 2025, up 128% year on year.
- In the first quarter of 2026, revenue jumped 54.8% year on year, operating profit 108.7% and net profit 172.3%.
- First-quarter net profit of ₩773.8 billion equals 55% of last year's full-year net profit — earned in a single quarter.
- Because the order backlog booked as vessel prices rose from 2023 onward is now feeding into results, this year's profit is on a trajectory to grow sharply over last year.
- Disclosures show a steady stream of order contracts.
- In May and June 2026 alone there were several disclosures of single-sale/supply-contract (order) signings.
- On May 7 and 20 the company gave fair disclosures of preliminary operating results, confirming a record first quarter.
- In June it disclosed its corporate governance report, and in late May it disclosed its large-business-group status filing.
- On May 22 there was a clarification disclosure (undetermined) in response to a rumor or media report.
- On the whole, tangible metrics — orders and results — fill the disclosure flow.
- The strengths are clear.
- The shipbuilding cycle is favorable, and orders built up while vessel prices were high are flowing into profit, lifting net profit step by step.
- Making engines in-house adds vertical integration that other shipbuilders lack, forming a profit buffer.
- On last year's earnings the P/E ratio (how many times one year's earnings the price represents) is 37.60x, which looks high, but on this year's rapidly rising earnings the picture changes greatly and moves into undervalued territory.
- There are cautions too.
- Because building a single ship takes several years, today's boom was made by past orders, and future profit depends on new orders and vessel-price trends from here.
- If newbuilding prices turn down or new orders slow, results a few years out could dim.
- In the end, the pace of new orders and whether vessel prices hold are the key conditions for judging this company.
🔎 Valuation vs peers Undervalued
Large domestic shipbuilders — the substantive comparison group whose core business is building merchant vessels.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Heavy Industries | 33.80x | 4.44x | 13.15% |
| Hanwha Ocean | 19.33x | 3.90x | 20.19% |
On last year's earnings the P/E of 38x is above the peer median, but that uses as its denominator last year's results from an early phase where profit had only just begun to surge, so it looks pricier than it really is. Given that first-quarter 2026 net profit jumped 172% year on year — clearing more than half of last year's full-year net profit in a single quarter — the valuation on this year's earnings falls far lower. Even against substantive peers Samsung Heavy Industries (P/E 34x) and Hanwha Ocean (P/E 20x), reflecting the surging-profit trajectory moves it into discount territory. For an inflection stock where profit is surging, one should look at this year's earnings rather than last year's P/E, and on that basis we assess it as undervalued.
Price history Close · MA20 · MA60
The latest close is ₩507,000 and the market capitalization is ₩53.2 trillion. The price sits below its 20-day moving average (₩610,100) and below its 60-day moving average (₩629,850). 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 31.8, a neutral level. The one-month change is -20.9%, the three-month change is +7.9%, and the position relative to the 52-week high is -31.9%. Relative strength versus the KOSPI is 36 (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 36% of all stocks. Over the past three months it lagged the index by 15.7%. 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 -15.73% / 6M -42.79% / 12M -45.01%
Key metrics vs sector median
Valuation
The P/E of 37.60x is above the sector median (12.45x). The P/B of 5.70x is above the sector median (1.64x). 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.
Intrinsic value (DCF estimate)
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 2.256x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 15.2%, in line with the sector average (15.0%). The operating margin is 11.6%. The debt ratio is 180.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $7.9B | $9.6B | $11.7B | +21.36% ↑ faster |
| Operating profit | $118.4M | $467.4M | $1.4B | +188.92% ↓ slower |
| Net profit | $16.4M | $411.9M | $938.1M | +127.75% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.5B | $6.0B | $7.9B | $9.6B | $11.7B |
| Operating profit | -$530.4M | -$191.6M | $118.4M | $467.4M | $1.4B |
| Net profit | -$539.6M | -$233.3M | $16.4M | $411.9M | $938.1M |
| Revenue CAGR | 4-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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 15.2% 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
- 2026-05-20EarningsFair-disclosure release of preliminary Q1 2026 operating results — revenue of ₩5.9163 trillion, operating profit of ₩905.4 billion and net profit of ₩773.8 billion, a record quarterly result.Near term: confirmation of surging profit strengthens earnings momentum. Mid term: grounds for an upward revision to this year's profit trajectory. Source
- 2026-06-08UpdateSigning of a single-sale/supply contract (voluntary disclosure) — a shipbuilding supply contract.Near term: reinforces the order backlog. Mid term: secures backlog that underpins future revenue and profit. Source
- 2026-06-01UpdateSigning of a single-sale/supply contract — a shipbuilding supply contract.Near term: keeps the order pipeline going. Mid term: securing volume in a phase of higher vessel prices helps defend profit. Source
- 2026-05-07EarningsFair-disclosure release of preliminary operating results — first-quarter results announcement.Near term: publicizes the rising-profit trend. Mid term: confirms the direction of full-year earnings improvement. Source
- 2026-05-15FilingDisclosure of the March 2026 quarterly report — finalizes first-quarter financial statements and order status.Mid term: grounds for confirming financial and order details. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08Single supply/sales contract
- 2026-06-01Corporate governance report
- 2026-06-01Single supply/sales contract
- 2026-05-29Large-business-group status disclosure
- 2026-05-22Disclosure
- 2026-05-20EarningsFair-disclosure notice
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Disclosure
- 2026-05-14Single supply/sales contract
- 2026-05-08Single supply/sales contract
- 2026-05-08Single supply/sales contract
- 2026-05-07EarningsFair-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.
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.