Hyundai HIMS is a shipbuilding upstream-supply company that makes the ship blocks forming a vessel's hull and the piping materials and outfitting that run through it, delivering them to shipyards; its results are directly tied to the build volumes of its key customer, the HD Hyundai group shipyards (HD Hyundai Heavy Industries, HD Hyundai Mipo, and others). With 2025 consolidated revenue of 248.2 billion won and operating profit of 28.8 billion won, and first-quarter 2026 revenue of 64.6 billion won and operating profit of 8.5 billion won, it extended a third straight year of growth, began shareholder returns with a cash dividend of 130 won per share (21.8% payout ratio), and posted an operating margin in the 11% range. What stands out lately is that, if the shipbuilding order boom continues and the parent shipyards keep high utilization, the price appeal of a forward P/E below the peer group stands out with the stock down more than 60% from its 52-week high; the offsetting points are that results are strongly tied to HD Hyundai group volumes, limiting independent order-winning and pricing power, and an 8.5% ROE puts capital efficiency below the large shipbuilders.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 11.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 10.7% higher than a year earlier.
- ROE is 8.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 11.6%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hercules Holdings 40% (corporate)
Controlling bloc incl. related parties 40.58%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis
- Hyundai HIMS makes the "ship blocks" that form a vessel's hull (large structures built by dividing a ship into several sections) and the piping materials and outfitting that run through it, delivering them to shipyards.
- Rather than selling completed ships, it earns revenue by supplying the intermediate parts and structures a shipyard uses to assemble a vessel.
- Its key customers are the HD Hyundai group shipyards (HD Hyundai Heavy Industries, HD Hyundai Mipo, and others), so its results are directly tied to the build volumes of the large shipbuilders.
- Thus the essence of the business is a "shipbuilding upstream-supply" structure in which, when the shipbuilding cycle is strong and shipyard order backlogs rise, block and piping orders rise together.
- Active global new-ship orders in recent years have been filling the parent shipyards' backlogs, and that flow is supporting Hyundai HIMS's revenue base.
- The latest close is 11,010 won and the market cap is 391.0 billion won.
- The price sits below its 20-day line (12,874 won) and below its 60-day line (16,168 won).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the strength of gains against losses over the past 14 days on a 0-100 scale) is 32.3, a neutral level.
- The one-month change is -18.8%, the three-month change is -38.6%, and the position versus the 52-week high is -64.3%.
- Relative strength against the KOSDAQ is 41 (1-99; the past year's return versus the index, weighted toward recent performance - higher means stronger than the market).
- That places it in roughly the top 59% of all listed names for strength.
- Over the past three months it has lagged the index by 18.5%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On confirmed full-year (2025) figures, the P/E (how many times one year's net profit the price represents) is 18.27x and the P/B (how many times the company's net assets the price represents) is 1.55x.
- This P/E is a trailing value based on last year's confirmed profit, and at a company where earnings have grown quickly, a trailing P/E tends to look pricier than reality.
- The forward P/B reflecting this year's earnings trend steps down to 1.55x.
- Set against the same shipbuilding-equipment peer group (Sejin Heavy Industries P/E 15.4x, SK Oceanplant P/E 27.5x), 14.6x is rather on the low side, so this is not a place to be called expensive on the trailing number alone; reflecting this year's earnings, it is closer to an undervaluation signal.
- On profitability, ROE (how much is earned in a year on shareholders' equity) is 8.5%, below the large shipbuilders, but the operating margin is a firm 11.6%.
- On the balance sheet, the debt ratio (the ratio of debt to equity) is 131.8%, not heavy, and with a current ratio of 192% and an interest-coverage ratio of 11x, both short-term debt repayment and interest burden are sound.
- Revenue grew for three straight years, from 189.2 billion won in 2023 to 223.2 billion won in 2024 to 248.2 billion won in 2025, a three-year compound annual growth rate of 14.5%.
- Over the same period operating profit rose from 14.5 billion won to 21.5 billion won to 28.8 billion won, faster than revenue, showing profitability improving as shipyard backlogs fill.
- First-quarter 2026 also extended the growth, with revenue of 64.6 billion won (+10.7%), operating profit of 8.5 billion won (+17.8%), and net profit of 6.5 billion won (+19.2%), the profit growth rate outpacing the revenue growth rate as the margin-improvement trend continues.
- This flow is exactly why the forward P/E on this year's earnings comes down.
- With the parent shipyards' backlogs being filled by active new-ship orders, the base for block and piping orders holds up, and this year's earning power steps up a notch from last year's confirmed figure.
- The annual growth "pace" is easing somewhat (revenue growth 18.0% to 11.2%), but the absolute growth trend itself, in both revenue and profit, keeps trending steadily higher.
- Recent disclosures center on routine reporting, results, and dividends.
- On 2026-05-14 the quarterly report disclosed confirmed first-quarter results (revenue 64.6 billion won, operating profit 8.5 billion won), confirming that growth continued.
- Earlier, on 2026-02-11 a "profit-structure change" disclosure noting last year's profit-and-loss moved more than 30% announced directly that operating profit had risen sharply (about +33%), and on the same day a cash dividend (130 won per share, 21.8% payout ratio) was decided, beginning returns of part of profit to shareholders.
- In March the 2025 business report confirmed consolidated revenue of 248.2 billion won and operating profit of 28.8 billion won, and it also went through an investor presentation (IR) and its annual general meeting.
- Results and business structure are most reliably verified against the original quarterly and business report documents.
- The strengths are clear.
- Three straight years of revenue and profit growth, an operating margin in the 11% range with a stable balance sheet, and the start of a dividend, combined with a forward P/E on this year's earnings that is lower than the same equipment peer group while the stock is down more than 60% from its 52-week high, read as price appeal.
- In other words, results are trending up while the stock has cooled sharply, an attractive spot on valuation.
- A point to view together is a structural feature.
- Results are strongly tied to HD Hyundai group shipyard volumes, limiting independent order-winning and pricing power, and an 8.5% ROE puts capital efficiency below the large shipbuilders.
- In sum, in a phase where the shipbuilding order boom continues and the parent shipyards keep high utilization, block and piping orders rise and it strengthens; if new-ship orders cool or the parent's build plans shrink, it weakens along with them.
- The core axis to track is "shipyard utilization and parent backlog," and as long as that base holds, the current price range can be seen as a zone where the burden is not large relative to growth.
🔎 Valuation vs peers Fairly valued
Hyundai HIMS is not a large shipbuilder that builds ships directly but an equipment company supplying blocks and piping materials to shipyards. So comparing it with fellow shipbuilding-upstream structure and equipment suppliers (SK Oceanplant, Sejin Heavy Industries) fits the business substance better than with a prime shipbuilder such as HD Hyundai Heavy Industries.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sejin Heavy Industries | 12.71x | 2.82x | 22.18% |
| SK Oceanplant | 21.99x | 1.02x | 4.64% |
| HD Hyundai Heavy Industries | 37.60x | 5.70x | 15.15% |
Compared directly with a prime shipbuilder (HD Hyundai Heavy Industries P/E 47.9x, P/B 7.26x), Hyundai HIMS looks far cheaper, but that comparison is not appropriate for a company with a different business structure. Set against the same upstream-equipment group (Sejin Heavy Industries, SK Oceanplant), its P/E is in the middle and its P/B on the low side - a spot that is "neither extremely cheap nor expensive." That said, a trailing P/E of 22x on last year's confirmed profit can look somewhat high given a phase of fast-growing earnings, and applying this year's earnings on a seasonality approximation (operating profit 32.4 billion won, net profit 25.4 billion won) brings the forward basis down to about 18.6x. Weighing that trailing indicators look expensive while reflecting this year's trend steps it down a notch, together with an ROE below peers, it reads as a fairly valued zone.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩68.3 billion | ₩9.8 billion | ₩7.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩11,010 and the market capitalization is ₩391.0 billion. The price sits below its 20-day moving average (₩12,874) and below its 60-day moving average (₩16,168). 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 32.3, a neutral level. The one-month change is -18.8%, the three-month change is -38.6%, and the position relative to the 52-week high is -64.3%. Relative strength versus the KOSDAQ is 41 (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 41% of all stocks. Over the past three months it lagged the index by 18.5%. 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 -18.53% / 6M -27.80% / 12M -41.73%
Key metrics vs sector median
Valuation
The P/E of 18.27x is above the sector median (12.45x). The P/B of 1.55x is in line with the sector median (1.64x).
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 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.5%, below the sector average (15.0%). The operating margin is 11.6%. The debt ratio is 131.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $125.4M | $147.9M | $164.5M | +11.22% ↓ slower |
| Operating profit | $9.6M | $14.3M | $19.1M | +33.48% ↓ slower |
| Net profit | $6.7M | $11.0M | $14.2M | +29.23% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $125.4M | $147.9M | $164.5M |
| Operating profit | — | — | $9.6M | $14.3M | $19.1M |
| Net profit | — | — | $6.7M | $11.0M | $14.2M |
| Revenue CAGR | 2-yr avg 14.54% | ||||
Revenue rose 11.2% year over year (2023 ₩189.2 billion → 2024 ₩223.2 billion → 2025 ₩248.2 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 33.5% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 14.5%. The two-year revenue CAGR is 14.5%. In the most recent quarter (Q1 2026), revenue was 10.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 11.2% 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
- 2026-05-14EarningsFirst-quarter quarterly report disclosure - revenue 64.6 billion won and operating profit 8.5 billion won, up +10.7% and +17.8% respectively year over yearOfficial results confirming that growth continues. Based on the quarterly weighting, it becomes a starting point for gauging this year's full-year trend. Source
- 2026-02-11EarningsProfit-structure change of over 30% disclosure - the company announced directly that 2025 operating profit rose sharply (about +33%) year over yearThe company officially confirms the profit-improvement trend. It supports the flow of profitability improving as backlogs fill. Source
- 2026-02-11DividendCash dividend decision - 130 won per share, 21.8% payout ratioThe start of returning part of profit to shareholders. Viewed together with cash-flow capacity, it is corroborating evidence of financial soundness. Source
- 2026-03-18Update2025 business report disclosure - consolidated revenue 248.2 billion won and operating profit 28.8 billion won confirmedThe primary original document confirming full-year results and business and financial structure at once. The reference value for all interpretation. Source
- 2026-03-03IRInvestor presentation (IR) held - decisionA session where the company explains results and business status directly. A channel to confirm the official business direction. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual operating profit | ₩28.8 billion(₩28.8 billion) | (2025.12) | Confirmed | link |
| First-quarter 2026 operating profit | ₩8.5 billion(₩8.5 billion) | (2026.03) | Confirmed | link |
| Cash dividend per share | ₩130 | ㆍ | Confirmed | link |
| This year's seasonality-approximated operating profit | ₩32.4 billion | — | Unverified | link |
Recent filings
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-22OwnershipOwnership-change filing
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-03Disclosure
- 2026-02-11DividendCash/stock dividend decision
- 2026-02-11EarningsEarnings 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.