HD Hyundai (267260)

HD Hyundai Electric is Korea's largest specialized company for electrical and electronic equipment and solutions, providing electrical and electronic devices, electrical systems, and control solutions necessary for power generation, transmission, and distribution. Its main business areas consist of Power Solution, which includes ultra-high voltage transformers, circuit breakers, motors, and generators; MV/LV Solution, which supplies switchgears and distribution transformers; and Marine Solution, which handles electrical systems for ships. In particular, revenue from power equipment is driving performance growth, centered on overseas markets, with power equipment revenue increasing by 21.6% year-on-year in Q1 2026. The company is pursuing new energy businesses through its eco-friendly energy solution brand 'GREENTRIC' and its ICT-based energy efficiency solution brand 'INTEGRICT'. Its major clients total 3,600 across 135 countries worldwide, and it is strengthening its market position, especially in the North American market, due to a surge in transformer demand driven by the increasing demand for AI data centers. Driven by increasing global power infrastructure investment, HD Hyundai Electric has secured an order backlog of over 3 years and is considered a major beneficiary of the surge in transformer demand resulting from the AI data center construction boom and the period of North American power grid replacement. The company has secured a competitive edge based on advanced technology in the field of extra-large special transformers (such as phase-shifting transformers and explosion-proof transformers), demonstrating its technological prowess by manufacturing Korea's largest capacity phase-shifting transformer. Furthermore, by expanding its Alabama plant in the U.S., it is strengthening local production capacity, resolving anti-dumping tariff issues, and increasing its U.S. market share by leveraging strengths such as zero defect rates, fast delivery, and reliable after-sales service. This 'supplier-dominant' market position provides it with a strong competitive advantage, allowing it to pass on cost increases to selling prices. HD Hyundai Electric recorded consistent revenue growth from 2022 to 2025. Revenue in 2025 reached KRW 4,079.5 billion, an increase of 22.8% year-on-year, and grew by 23.0% compared to KRW 3,322.3 billion in 2024. Operating income also significantly increased from KRW 133.0 billion in 2022 to KRW 995.3 billion in 2025, showing a high growth rate of 48.8% year-on-year. Consequently, the operating profit margin substantially improved from 6.3% in 2022 to 24.4% in 2025, indicating a significant enhancement in profitability. The company's financial health is continuously improving. The debt-to-equity ratio consistently decreased from 192.96% in 2022 to 134.63% in 2025, strengthening financial stability. The current ratio has maintained a healthy level, rising from 109.72% in 2022 to 134.43% in 2025. Return on Equity (ROE) continuously increased from 19.49% in 2022 to 36.00% in 2025, demonstrating very high efficiency and profitability in capital utilization. HD Hyundai Electric is expected to achieve robust growth in the future due to increasing global power infrastructure investment, particularly the rising demand for high-power infrastructure driven by the expansion of the AI industry and data center construction. The company has secured an order backlog of over 3 years and plans to further enhance profitability and expand global market share through a selective order strategy focused on high-value projects, such as 765kV ultra-high voltage transformers, and by strengthening its eco-friendly and high-efficiency product lineup. Furthermore, growth is anticipated in the new energy business sector, including the contract for the 200MWh BESS project in Texas, USA, and securing a 600MWh ESS project domestically.