HD Korea Shipbuilding & Offshore Engineering Co Ltd

HD Korea Shipbuilding & Offshore Engineering Co Ltd maintains a conservative capital structure characterized by low leverage and strong liquidity. The company holds KRW 3.73 trillion in cash and equivalents against KRW 1.50 trillion in long-term debt, resulting in a debt-to-equity ratio of 0.11. This balance sheet strength is reflected in a current ratio of 1.17, indicating adequate short-term solvency. The firm generates substantial operating cash flow of KRW 4.42 trillion, which exceeds its capital expenditure of KRW 1.00 trillion, yielding free cash flow of KRW 2.50 trillion. This cash generation capacity supports the company's ability to fund operations and return capital without relying on external financing.

Profitability metrics demonstrate efficient capital utilization relative to the company's asset base. The firm reports a return on equity of 16.32% and a return on assets of 5.48%. Operating income stands at KRW 3.92 trillion on revenue of KRW 29.93 trillion, indicating robust operating margins. The valuation snapshot shows a price-to-earnings ratio of 11.82 and an EV/EBITDA of 5.97, suggesting the market prices the stock at a moderate multiple relative to its earnings power. The price-to-book ratio of 1.93 reflects a premium over tangible book value, consistent with the company's strong return on equity profile.

HD Korea Shipbuilding & Offshore Engineering Co Ltd (009540.KS) has undergone a formal classification update, with its economic sector now explicitly identified as Industrials and its primary activity categorized under Industrial Goods. This structural definition provides a clearer framework for analyzing the company’s operational focus within the broader manufacturing and heavy industry landscape. Concurrently, the firm’s risk profile has been assessed, with both dilution risk and liquidity risk classified as low. These assessments indicate a stable capital structure and adequate access to funds, suggesting that the company is not currently facing significant pressure from share issuance or cash flow constraints. The combination of these low-risk ratings and the clear sectoral classification offers a baseline for evaluating the company’s financial health. By establishing these fundamental parameters, investors and analysts can better contextualize HD Korea Shipbuilding’s position relative to peers in the Industrial Goods segment. This updated profile serves as a foundational reference for future analysis, ensuring that subsequent evaluations of the company’s performance are grounded in accurate sectoral and risk-based metrics. The absence of high-severity changes in these core areas underscores a period of stability in the company’s fundamental classification and risk outlook.

Analysts project 58.4% upside to a mean price target of 578,067 KRW, reflecting strong buy consensus.

Free cash flow surged 144.1% year-over-year to 2.5 trillion KRW in fiscal 2026.

Operating income expanded 174.9% year-over-year to 3.9 trillion KRW, signaling robust operational leverage.

Cash conversion ratio of 7.81 ranks best-in-class among 46 shipbuilding peers.

Long-term debt decreased significantly to 1.5 trillion KRW in fiscal 2026, improving the balance sheet.

Net margin of 4.42% remains below the 5.07% industry median, indicating pricing pressure.

Return on assets of 0.88% suggests inefficient asset utilization compared to broader market standards.

Revenue KRW 8.14T, +20,2% YoY; Operating income +57,8% YoY.

• ▍Revenue KRW 8.14T, +20,2% YoY
• ▍Operating income +57,8% YoY
• ▍Net income +70,4% YoY
• ▍Free cash flow +153,8% YoY
• ▍Net margin 10.4%

Revenue KRW 8.15T, +13,8% YoY; Operating income +125,5% YoY.

• ▍Revenue KRW 8.15T, +13,8% YoY
• ▍Operating income +125,5% YoY
• ▍Net income +26,5% YoY
• ▍Free cash flow +44,7% YoY
• ▍Net margin 8.4%

Revenue KRW 7.58T, +21,4% YoY; Operating income +164,6% YoY.

• ▍Revenue KRW 7.58T, +21,4% YoY
• ▍Operating income +164,6% YoY
• ▍Net income +319,3% YoY
• ▍Free cash flow +1 338,6% YoY
• ▍Net margin 8.4%

Revenue KRW 7.43T, +12,3% YoY; Operating income +142,7% YoY.

• ▍Revenue KRW 7.43T, +12,3% YoY
• ▍Operating income +142,7% YoY
• ▍Net income +22,0% YoY
• ▍Free cash flow +62,2% YoY
• ▍Net margin 4.8%

Revenue KRW 6.77T; Operating income KRW 859.24B.

• ▍Revenue KRW 6.77T
• ▍Operating income KRW 859.24B
• ▍Net margin 7.3%

Revenue KRW 7.16T; Operating income KRW 486.07B.

• ▍Revenue KRW 7.16T
• ▍Operating income KRW 486.07B
• ▍Net margin 7.5%

Revenue KRW 6.25T; Operating income KRW 398.19B.

• ▍Revenue KRW 6.25T
• ▍Operating income KRW 398.19B
• ▍Net margin 2.4%

Revenue KRW 6.62T; Operating income KRW 376.60B.

• ▍Revenue KRW 6.62T
• ▍Operating income KRW 376.60B
• ▍Net margin 4.4%

Revenue KRW 29.93T, +17,2% YoY; Operating income +174,9% YoY.

• ▍Revenue KRW 29.93T, +17,2% YoY
• ▍Operating income +174,9% YoY
• ▍Net income +85,0% YoY
• ▍Free cash flow +144,1% YoY
• ▍Net margin 7.2%

Revenue KRW 25.54T, +19,9% YoY; Operating income +507,2% YoY.

• ▍Revenue KRW 25.54T, +19,9% YoY
• ▍Operating income +507,2% YoY
• ▍Net income +428,8% YoY
• ▍Free cash flow +479,6% YoY
• ▍Net margin 4.6%

Revenue KRW 21.30T, +23,1% YoY; Operating income +160,1% YoY.

• ▍Revenue KRW 21.30T, +23,1% YoY
• ▍Operating income +160,1% YoY
• ▍Net income +202,2% YoY
• ▍Free cash flow +53,9% YoY
• ▍Net margin 1.0%

Revenue KRW 17.30T, +11,7% YoY; Operating income +72,4% YoY.

• ▍Revenue KRW 17.30T, +11,7% YoY
• ▍Operating income +72,4% YoY
• ▍Net income +76,7% YoY
• ▍Free cash flow +49,4% YoY
• ▍Net margin -1.3%