HD Korea Shipbuilding & Offshore Engineering (009540)

[Business Overview] HD Korea Shipbuilding & Offshore Engineering is the intermediate holding company for HD Hyundai's shipbuilding and offshore business division, engaging in shipbuilding, offshore plants, engine machinery, and green energy businesses. Its main products include various vessels such as crude oil carriers, container ships, LNG carriers, and LPG carriers, as well as offshore structures, marine engines, and eco-friendly equipment. The company particularly excels in building high-value-added eco-friendly vessels. As of 2025, based on consolidated revenue, 83.6% is generated from the shipbuilding segment, 9.7% from the engine machinery segment, and 4.2% from the offshore plant segment. Its main customers are international shipowners across the global market, and it maintains a leading position in the global shipbuilding market. [Core Competencies] The company has secured diverse shipbuilding capabilities based on economies of scale through its subsidiaries, including HD Hyundai Heavy Industries, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries. It possesses advanced technology for building high-value-added eco-friendly vessels and capabilities for developing eco-friendly propulsion solutions, such as dual-fuel engines. It is also actively engaged in future technology development, including obtaining basic approval for liquefied hydrogen carriers. Furthermore, key competencies include portfolio diversification covering all vessel types and securing cost competitiveness through the expansion of overseas production bases in countries like India and the Philippines. [Performance Analysis] HD Korea Shipbuilding & Offshore Engineering has shown remarkable performance improvement in recent years. Revenue grew by 19.92% from KRW 21,296.2 billion in 2023 to KRW 25,538.6 billion in 2024, and further increased by 17.21% year-over-year to KRW 29,933.2 billion in 2025. Operating income turned profitable from KRW -355.6 billion in 2022 to KRW 282.3 billion in 2023, then significantly increased to KRW 1,434.1 billion in 2024 and KRW 3,904.5 billion in 2025, indicating substantial improvement in profitability. Operating margin also showed a steady upward trend, rising from -2.05% in 2022 to 13.04% in 2025. [Financial Soundness] In terms of financial soundness, HD Korea Shipbuilding & Offshore Engineering's debt-to-equity ratio improved from 160.65% in 2023 to 133.86% in 2025. The current ratio gradually increased from 101.36% in 2023 to 117.06% in 2025, indicating an improvement in short-term liquidity. Return on Equity (ROE) turned profitable from -2.40% in 2022 to 1.17% in 2023, and significantly improved to 10.28% in 2024 and 17.32% in 2025, demonstrating increased efficiency in capital utilization. [Outlook] The global shipbuilding boom and the increasing demand for high-value-added vessels due to strengthened eco-friendly regulations are expected to positively impact HD Korea Shipbuilding & Offshore Engineering's performance. The company continues to pursue a selective order-taking strategy focused on high-profit eco-friendly vessels, and with the expansion of overseas production bases and increasing demand for eco-friendly engines in the engine machinery segment, it can anticipate mid-to-long-term growth.