HD Hyundai Marine Solution earns money by keeping ships already in service running well, split across AM Solution (parts supply and maintenance—its largest axis), bunkering (marine fuel), eco-friendly solutions (retrofits for environmental regulation), and digital solutions (navigation software); of Q1 2026 revenue of ₩574.6 billion, exports were ₩465.1 billion (about 81%), a dollar-linked structure. In March its corporate-value enhancement plan set 2028 targets (about 20% average annual revenue growth in core businesses, a 20% operating margin, and ROE of 30% or more) and introduced a payout ratio of 50-70% and quarterly dividends, and in April it confirmed +55% net-profit growth in Q1 along with a cash dividend. What stands out lately is high profitability from an asset-light parts-and-services structure—ROE of 32.7% and a 17.7% operating margin—plus tightening environmental regulation as a structural tailwind, set against the caution that about 80% of revenue is exports, so exchange-rate swings can move quarterly net profit sharply, and bunkering and retrofits are affected by shipping-market conditions.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 13.6% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 18.3% higher than a year earlier.
- ROE is 32.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 17.7%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder HD Hyundai 55.32% (corporate)
Controlling bloc incl. related parties 55.36%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- This company does not build and sell ships or marine engines; it earns money by keeping ships already in service "running well." Revenue comes in four streams.
- (1) AM Solution (the largest axis) supplies ship parts such as main and auxiliary engines, electrical equipment and boilers and provides maintenance, upkeep and repair services, and also includes operation and management of onshore power plants.
- (2) Bunkering supplies marine fuel and is linked to shipping-market conditions.
- (3) Eco-friendly solutions win turnkey retrofit projects such as installing exhaust-reduction devices to meet tightening environmental regulation.
- (4) Digital solutions are software for controlling and managing ship navigation.
- Of Q1 2026 revenue of ₩574.6 billion, exports were ₩465.1 billion (about 81%), an export-centered, dollar-linked structure serving the base of HD Hyundai-affiliated ships deployed worldwide.
- The recent close is ₩189,300 and market cap is ₩8.5 trillion.
- The price sits below its 20-day line (₩222,370) and below its 60-day line (₩228,267).
- Trading below both its short- and mid-term moving averages, the trend looks subdued.
- The RSI (an auxiliary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 34.7, a neutral reading.
- The 1-month change is -17.3%, the 3-month change is +10.1%, and it stands -32.5% below its 52-week high.
- Relative strength versus the KOSPI is 30 (1-99, a recency-weighted conversion of returns against the index over the past year—higher means stronger than the market), placing it around the top 70% of all stocks by strength.
- Over the past three months it has lagged the index by 13.8%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- Profitability is this company's core strength.
- ROE (how much is earned in a year on equity) is very high at 32.7%, and the operating margin is 17.7%.
- As an asset-light business centered on parts and services, it produces high margins without large facilities.
- Its finances are also robust, with a debt ratio (debt against equity) of just 54% and a current ratio of 290%, leaving ample short-term repayment capacity.
- On valuation, the P/E on last year's results (how many times one year's earnings the price represents) is 31.48x and the P/B (how many times book equity) is 10.29x, high on the numbers alone.
- But for a stock like this whose earnings are rising quickly, a P/E computed on last year's bygone earnings has the limitation of making it look more expensive than it is.
- The dividend yield is 1.76% (₩3,950 per share), and the payout ratio on a separate-basis net profit is 65.7%, returning a substantial share of earnings to shareholders.
- The three-year trend is a steady upward path.
- Revenue rose from ₩1.43 trillion (2023) to ₩1.75 trillion (2024) to ₩1.98 trillion (2025); operating profit from ₩201.5 billion to ₩271.7 billion to ₩350.1 billion; and net profit from ₩151.1 billion to ₩227.9 billion to ₩269.6 billion.
- The three-year average revenue growth rate is 17.7% and operating profit 31.8%, with earnings growing faster than revenue.
- Q1 2026 started with revenue of ₩574.6 billion (+18.3% YoY), operating profit of ₩93.4 billion (+12.5%), and net profit of ₩98.1 billion (+55.0%).
- The net-profit gain outpacing operating profit appears to reflect non-operating factors such as exchange rates and interest income, given the high export share.
- In its 2026 corporate-value enhancement plan, the company set official targets through 2028 of about 20% average annual revenue growth in core businesses, a company-wide operating margin of 20%, and ROE of 30% or more.
- Placing this growth trajectory alongside the Q1 results, this year's earnings are likely to be clearly higher than last year's.
- Even if the P/E on last year's bygone earnings looks high, the burden is lower measured against this year's expected earnings.
- The most important event is the "corporate-value enhancement plan" disclosed in March 2026.
- In it the company set 2028 targets (about 20% average annual revenue growth in core businesses, a 20% operating margin, and ROE of 30% or more) alongside a payout ratio of 50-70% (on a separate-basis net profit) over the next three years, a minimum per-share dividend of ₩3,600, and the introduction of quarterly dividends (four times a year).
- In April it disclosed provisional Q1 2026 results via fair disclosure, confirming +55% net-profit growth, and decided a cash dividend on the same day.
- In June there was a voluntary disclosure related to a sustainability-management report.
- Growth targets, stronger shareholder returns and results confirmation came out in sequence over the first half.
- The strong conditions are clear.
- With an asset-light parts-and-services structure it produces high profitability—ROE of 32.7% and a 17.7% operating margin—carries little debt for robust finances, and, unlike shipbuilders that build vessels, steadily absorbs the maintenance and retrofit demand of fleets already in service.
- On top of this, tightening environmental regulation is a structural tailwind that increases eco-friendly retrofit demand.
- The 2028 growth and profitability targets the company laid out and the introduction of quarterly dividends support this direction.
- There are cautionary conditions too.
- About 80% of revenue is exports, so exchange-rate swings can move quarterly net profit sharply (this factor is mixed into the Q1 net-profit surge), and the bunkering and retrofit businesses are affected by shipping-market conditions and the timing of environmental regulation.
- The high-looking valuation on last year's earnings should also be viewed together—a trait seen in stocks whose earnings are rising quickly, and one whose burden eases when measured against this year's expected earnings.
🔎 Valuation vs peers Fairly valued
On the business substance of ship and engine after-sales service, compared with shipbuilders in the same HD Hyundai marine ecosystem; note, though, that this company is not a shipbuilder but an asset-light service business handling maintenance, parts and retrofits for ships in service, so its profitability and valuation character differ.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HD Hyundai Heavy Industries | 37.60x | 5.70x | 15.15% |
| Hanwha Ocean | 19.33x | 3.90x | 20.19% |
The P/E of 37.3x and P/B of 12.2x on last year's results are higher than shipbuilding peers. But this company is not a shipbuilder; it is an asset-light service business managing ships in service, and its ROE of 32.7% overwhelms that of shipbuilders (15-20%). With earning power on capital roughly double, a high P/B is natural given the nature of the business. And as a stock whose earnings are rising quickly, the P/E computed on last year's bygone earnings has the limitation of looking more expensive than it is. Reflecting that Q1 2026 net profit rose 55% year over year and that the company set official 2028 targets of double-digit revenue growth and a 20% operating margin, the valuation burden on this year's expected earnings is clearly lower than on last year's basis. Viewing profitability, growth and valuation together, it is hard to conclude extreme overvaluation, so we judge it a "fairly valued" zone.
Price history Close · MA20 · MA60
The latest close is ₩189,300 and the market capitalization is ₩8.5 trillion. The price sits below its 20-day moving average (₩222,370) and below its 60-day moving average (₩228,267). 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 34.7, a neutral level. The one-month change is -17.3%, the three-month change is +10.1%, and the position relative to the 52-week high is -32.5%. Relative strength versus the KOSPI is 30 (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 30% of all stocks. Over the past three months it lagged the index by 13.8%. 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 -13.77% / 6M -39.63% / 12M -59.35%
Key metrics vs whole-market median
Valuation
The P/E of 31.48x is above the whole-market median (13.81x). The P/B of 10.29x 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.372x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 32.7%, above the whole-market average (5.0%). The operating margin is 17.7%. The debt ratio is 54.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $948.1M | $1.2B | $1.3B | +13.59% ↓ slower |
| Operating profit | $133.5M | $180.1M | $232.1M | +28.86% ↓ slower |
| Net profit | $100.2M | $151.1M | $178.7M | +18.26% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $948.1M | $1.2B | $1.3B |
| Operating profit | — | — | $133.5M | $180.1M | $232.1M |
| Net profit | — | — | $100.2M | $151.1M | $178.7M |
| Revenue CAGR | 2-yr avg 17.73% | ||||
Revenue rose 13.6% year over year (2023 ₩1.4 trillion → 2024 ₩1.7 trillion → 2025 ₩2.0 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 28.9% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 17.7%. The two-year revenue CAGR is 17.7%. In the most recent quarter (Q1 2026), revenue was 18.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 32.7% points to solid profitability.
- Revenue grew 13.6% 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
- 2026-03-25FilingDisclosure of the 2026 corporate-value enhancement plan — 2028 targets of about 20% average annual revenue growth in core businesses, a 20% operating margin, and ROE of 30% or more; a payout ratio of 50-70% over the next three years, a minimum DPS of ₩3,600, and quarterly dividends (four times a year).The company directly specifies medium-term growth and profitability targets and a stronger shareholder-return direction. A positive factor that raises the predictability of the earnings trajectory and dividends. Source
- 2026-04-24EarningsQ1 2026 consolidated provisional results (fair disclosure) — revenue of ₩574.6 billion (+18.3% YoY), operating profit of ₩93.4 billion (+12.5%), and net profit of ₩98.1 billion (+55.0%).Confirms continued growth. The net-profit surge in particular strengthens short-term earnings momentum (though some non-operating factors such as exchange rates are included). Source
- 2026-04-24DividendCash/in-kind dividend decision and dividend record-date (shareholder-register closing) decision disclosure.Execution of shareholder returns. A finalized dividend that shows consistency in dividend policy. Source
- 2026-05-15FilingQ1 2026 quarterly report filed — confirms the revenue structure centered on the business segments (AM Solution, bunkering, eco-friendly solutions, digital solutions) and 81% exports.Confirms results in detail. Officially confirms the export-heavy business structure and the four-segment makeup. Source
- 2026-06-30IRVoluntary disclosure of matters related to the sustainability-management report and the like.Strengthens transparency of governance and non-financial information. Limited direct earnings impact. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 ROE | 32.7% (base) | 33.7% | Confirmed | link |
| 2025 payout ratio (on separate-basis net profit) | 65.7% (base payout_ratio) | 65.7% | Confirmed | link |
| Q1 2026 revenue | ₩574.6 billion (base quarter) | 574,609 | Confirmed | link |
| 2026 estimated net profit (internal) | approx. ₩370.0 billion (self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Disclosure
- 2026-04-24DividendCash/stock dividend decision
- 2026-04-24DividendCash/stock dividend decision
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-17Disclosure
- 2026-04-01OwnershipOwnership-change filing
- 2026-04-01OwnershipOfficers'/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.
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.