Hd Construction Equipment Co.,Ltd. (267270)

HD Construction Equipment is the integrated construction equipment entity of HD Hyundai Group, launched on January 1, 2026, through the merger of HD Hyundai Construction Equipment and HD Hyundai Infracore. The company is a comprehensive machinery company that operates businesses in engines and aftermarket (parts, services) alongside various construction equipment products such as excavators, wheel loaders, and articulated dump trucks. As of Q1 2026, the construction equipment segment accounts for approximately 83.6% of total revenue, while the engine segment accounts for approximately 14.6%. HD Construction Equipment operates two brands, HYUNDAI and DEVELON, in parallel, supplying products to global markets through a network of 540 dealers in 140 countries. It is driving growth, particularly bolstered by increasing demand for infrastructure investment and resource development in emerging markets such as the Middle East, Africa, and Latin America, and has also secured the top position in the Indian excavator market. Through the merger of HD Hyundai Construction Equipment and HD Hyundai Infracore, HD Construction Equipment is maximizing integration synergies, including expanding its product lineup, integrating overseas sales networks, enhancing R&D and sales efficiency, and securing cost competitiveness. With a dual-brand strategy operating two strong brands, HYUNDAI and DEVELON, the company flexibly responds to diverse regional and customer needs, leading the market based on advanced technological capabilities such as the development of eco-friendly construction equipment, transparent bucket functionality, and remote management systems. Furthermore, beyond complete construction equipment products, it is strengthening its highly profitable engine and aftermarket (AM) businesses to establish a stable revenue structure. HD Construction Equipment's revenue (based on former HD Hyundai Construction Equipment) increased by 8.8% from KRW 3.5156 trillion in 2022 to KRW 3.8250 trillion in 2023, but then decreased by 10.1% to KRW 3.4381 trillion in 2024. In 2025, it showed signs of recovery, increasing by 9.8% to KRW 3.7765 trillion. Operating income increased from KRW 170.6 billion in 2022 to KRW 257.2 billion in 2023, but then trended downwards to KRW 190.4 billion in 2024 and KRW 170.9 billion in 2025. This was attributable to the recognition of one-off costs, such as the restructuring of HD Hyundai Construction Equipment's China business in 2025. However, in Q1 2026, the first earnings report after the launch of the integrated entity in January 2026, revenue reached KRW 2.3049 trillion and operating income reached KRW 190.7 billion, representing a sharp increase of 22.1% in revenue and 88.3% in operating income year-over-year. This was due to the simultaneous growth of both the construction equipment and engine business segments, along with the effects of integration synergies. HD Construction Equipment's debt-to-equity ratio (based on former HD Hyundai Construction Equipment) improved from 106.84% in 2022 to 86.64% in 2025, maintaining a sound level below 100%. The current ratio secured stable liquidity around 200%, increasing from 171.11% in 2022 to 200.24% in 2025. ROE declined from 7.20% in 2023 to 4.51% in 2025, but a rebound is expected in the future due to improved performance in Q1 2026. HD Construction Equipment anticipates positive growth, driven by the recovery of the global construction equipment market and increasing demand for infrastructure investment and resource development in emerging markets such as the Middle East, Africa, and Latin America. As an integrated entity, it plans to achieve continuous growth by maximizing synergy effects, strengthening its highly profitable aftermarket (AM) and engine businesses, and establishing a full lineup of compact equipment. The company aims to achieve KRW 14.1 trillion in revenue by 2030, aspiring to become a top 10 global construction equipment company.