HD Hyundai Heavy Industries Co Ltd

HD Hyundai Heavy Industries maintains a conservative capital structure with a debt-to-equity ratio of 0.07, indicating minimal leverage relative to its equity base of 9.34 trillion KRW. The company holds 1.86 trillion KRW in cash and equivalents against 682 billion KRW in long-term debt, resulting in a net cash position. However, liquidity is constrained by a current ratio of 0.98, suggesting that current liabilities slightly exceed current assets, though the risk assessment flags liquidity risk as low. The firm generates substantial operating cash flow of 3.51 trillion KRW, which supports its free cash flow of 873 billion KRW after capital expenditures of 541 billion KRW.

Profitability metrics demonstrate strong returns, with a return on equity (ROE) of 20.39% and a return on assets (ROA) of 7.28%. The company reported net income of 1.42 trillion KRW on revenue of 17.58 trillion KRW, yielding a net margin of approximately 8.05%. Operating income stands at 2.05 trillion KRW, reflecting an operating margin of roughly 11.65%. These returns are supported by a gross profit of 2.96 trillion KRW, indicating effective cost management in its industrial machinery operations.

The company’s revenue mix is not detailed in the available segment or geographic data, preventing a specific analysis of concentration risk by product line or region. The total revenue of 17.58 trillion KRW is attributed to its core industrial machinery activities. Without specific segment breakdowns, the analysis relies on the aggregate financial performance, which suggests a diversified or dominant core business model typical of large industrial conglomerates.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot reflects a single normalized period, preventing year-over-year or quarter-over-quarter trend analysis. The substantial revenue base of 17.58 trillion KRW indicates a large-scale operation, but the direction of growth cannot be determined from the provided static data points.

Risk assessment indicates low liquidity risk and low dilution risk, with no immediate filing-based flags detected. The company’s balance sheet is stable, with total assets of 26.16 trillion KRW exceeding total liabilities of 16.82 trillion KRW. The low debt-to-equity ratio further mitigates financial risk, providing a buffer against economic downturns. The absence of key risk flags suggests a stable operational environment without immediate distress signals.

Recent investor relations observations highlight strong analyst sentiment, with a mean recommendation of 1.75 (where 1 is strong buy). The mean price target is 876,000 KRW, representing significant upside from the current market price of 513,000 KRW. The high price target reaches 1,170,000 KRW, while the low is 640,000 KRW. Analyst coverage includes 8 strong buys and 15 buys, with no holds, indicating unanimous positive sentiment among covering analysts.

Analysts project 93% upside to a mean price target of 876,000 KRW, reflecting strong consensus buy ratings.

Revenue is projected to grow at a 20.6% CAGR over four years, indicating robust top-line expansion momentum.

Debt-to-equity ratio of 0.07 is significantly lower than the cohort median of 0.20, ensuring financial stability.

The low debt-to-equity ratio of 0.07 may indicate under-leverage, potentially limiting returns compared to more aggressive peers.

Negative free cash flow in FY2024 suggests capital intensity remains high despite recent profitability improvements.

Historical net income volatility, including losses in FY2022 and FY2023, highlights sensitivity to cyclical market conditions.

Revenue KRW 5.92T, +54,8% YoY; Operating income +108,7% YoY.

• ▍Revenue KRW 5.92T, +54,8% YoY
• ▍Operating income +108,7% YoY
• ▍Net income +172,2% YoY
• ▍Free cash flow +307,4% YoY
• ▍Net margin 13.1%

Revenue KRW 5.19T, +29,6% YoY; Operating income +96,5% YoY.

• ▍Revenue KRW 5.19T, +29,6% YoY
• ▍Operating income +96,5% YoY
• ▍Net income +33,5% YoY
• ▍Free cash flow +38,5% YoY
• ▍Net margin 9.4%

Revenue KRW 4.42T, +22,4% YoY; Operating income +169,9% YoY.

• ▍Revenue KRW 4.42T, +22,4% YoY
• ▍Operating income +169,9% YoY
• ▍Net income +496,7% YoY
• ▍Free cash flow +863,6% YoY
• ▍Net margin 9.8%

Revenue KRW 4.15T, +6,8% YoY; Operating income +146,8% YoY.

• ▍Revenue KRW 4.15T, +6,8% YoY
• ▍Operating income +146,8% YoY
• ▍Net income +36,9% YoY
• ▍Free cash flow +79,7% YoY
• ▍Net margin 5.1%

Revenue KRW 3.82T; Operating income KRW 433.73B.

• ▍Revenue KRW 3.82T
• ▍Operating income KRW 433.73B
• ▍Net margin 7.4%

Revenue KRW 4.01T; Operating income KRW 292.55B.

• ▍Revenue KRW 4.01T
• ▍Operating income KRW 292.55B
• ▍Net margin 9.2%

Revenue KRW 3.61T; Operating income KRW 206.15B.

• ▍Revenue KRW 3.61T
• ▍Operating income KRW 206.15B
• ▍Net margin 2.0%

Revenue KRW 3.88T; Operating income KRW 195.63B.

• ▍Revenue KRW 3.88T
• ▍Operating income KRW 195.63B
• ▍Net margin 4.0%

Revenue KRW 17.58T, +21,4% YoY; Operating income +186,2% YoY.

• ▍Revenue KRW 17.58T, +21,4% YoY
• ▍Operating income +186,2% YoY
• ▍Net income +127,8% YoY
• ▍Free cash flow +102,8% YoY
• ▍Net margin 8.1%

Revenue KRW 14.49T, +21,1% YoY; Operating income +355,2% YoY.

• ▍Revenue KRW 14.49T, +21,1% YoY
• ▍Operating income +355,2% YoY
• ▍Net income +2 417,7% YoY
• ▍Free cash flow +303,9% YoY
• ▍Net margin 4.3%

Revenue KRW 11.96T, +32,3% YoY; Operating income +149,1% YoY.

• ▍Revenue KRW 11.96T, +32,3% YoY
• ▍Operating income +149,1% YoY
• ▍Net income +107,0% YoY
• ▍Free cash flow +65,5% YoY
• ▍Net margin 0.2%

Revenue KRW 9.05T, +8,8% YoY; Operating income +61,2% YoY.

• ▍Revenue KRW 9.05T, +8,8% YoY
• ▍Operating income +61,2% YoY
• ▍Net income +56,8% YoY
• ▍Free cash flow +27,2% YoY
• ▍Net margin -3.9%