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 significant revision in its analytical profile, marked by a substantial downward adjustment in its estimated market share. The company’s calculated market share percentage dropped from approximately 11.77% to 7.50%, representing a decline of roughly 36.31%. This metric change is the most material update in the recent data cycle, signaling a notable shift in the firm's competitive positioning within the sector. This reduction in market share coincides with a comprehensive overhaul of the company’s AI-driven analysis. The narrative, business summary, and conclusion sections were all revised with low similarity scores to previous versions, indicating a fundamental re-evaluation of the company's strategic outlook. Additionally, the key takeaways were significantly pruned, with eight items removed and only one added, suggesting a consolidation of focus or a reduction in previously identified growth drivers. Despite these internal analytical shifts, external market attention remains sparse. Cross-source signals indicate minimal news dispatch activity over the past month, with only two days recording any mentions between late June and mid-July 2026. The absence of significant news volume or sentiment spikes suggests that the market has not yet reacted visibly to the revised market share estimates or the updated analytical narrative. The broader context for HD Korea Shipbuilding includes exposure to macro-industrial trends, such as the "EU Russian LNG Shift," which carries a moderate intensity score. However, with no current analyst coverage, index memberships, or disclosed top holders in the available data, the immediate impact of the market share decline remains isolated to internal model adjustments rather than reflected in broader institutional positioning or public market commentary.

Analysts project 57.7% upside to a mean price target of 588,067 KRW, reflecting strong consensus buy ratings.

Operating income is forecast to surge 174.9% year-over-year to 3.92 trillion KRW in fiscal 2026.

Free cash flow is expected to jump 144.1% to 2.50 trillion KRW, demonstrating robust cash generation.

Long-term debt is projected to decline significantly to 1.50 trillion KRW, reducing leverage to 0.11.

The company reported negative free cash flow of 1.16 trillion KRW in fiscal 2022, indicating past liquidity strain.

Net income was negative 929 billion KRW in fiscal 2022, highlighting historical profitability challenges before recent recovery.

Operating income remained negative at 1.42 trillion KRW in fiscal 2022, showing past operational inefficiencies.

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%