Business · Companies · 4 hrs ago
HD Hyundai Heavy Industries posts higher third-quarter sales and profit
HD Hyundai Heavy Industries reported higher third-quarter sales and operating profit, with sales up 30.2% and operating profit up 61.3% from a year earlier.
Operating profit was 899 billion won, below analysts’ average estimate of 979 billion won, partly because of labor agreement costs and a stronger won.
Samsung Securities said these one-off costs and currency concerns have eased after weighing on the results.
The brokerage maintained its buy rating and 500,000-won target price, saying the shares are trading at a steep discount to competitors and other industrial companies.
It pointed to affiliate HD Hyundai Samho’s profit margin of about 20% as evidence that margins could improve as higher-priced orders make up more sales.
The company’s future performance may also draw attention to engine orders for land-based power plants and expansion plans, which the brokerage identified as new business areas.
HD Hyundai Heavy Industries reported third-quarter 2026 sales of 5.754 trillion won, up 30.2% from a year earlier.
Operating profit rose 61.3% to 899 billion won, but was 8.2% below the analyst consensus of 979 billion won.
Pre-tax profit and net profit attributable to controlling shareholders fell 16.8% and 17.8%, respectively, amid foreign-exchange valuation losses on foreign-currency assets.
Samsung Securities said labor-agreement costs and the stronger won had weighed on results, but described the share price as excessively undervalued.
- Who
- HD Hyundai Heavy Industries.
- What
- It reported higher third-quarter sales and operating profit than a year earlier.
- When
- The third quarter of 2026. Samsung Securities discussed the results on October 29.
- Where
- Not stated.
- Why
- Sales and operating profit increased year on year, while labor-agreement costs and a stronger won weighed on profitability.
This story does not have two clearly opposing sides.
HD Hyundai Heavy Industries recorded sales of 5.754 trillion won and operating profit of 899 billion won.
Samsung Securities assessed the results and maintained its Buy rating and 500,000-won target price.
- Sales
- 5.754 trillion won, up 30.2% year on year
- Operating profit
- 899 billion won, up 61.3% year on year
- Analyst consensus
- 979 billion won for operating profit
- Pre-tax profit
- 475 billion won, down 16.8% year on year
- Net profit attributable to controlling shareholders
- 354 billion won, down 17.8% year on year
- Samsung Securities target price
- 500,000 won
What people are saying
The possibility that third-quarter results would be weakened by labor-agreement uncertainty and the stronger won ended with a better outcome than the market feared
The share price, trading at eight times 2027 earnings, is excessively undervalued compared with the broader industrial sector as well as domestic and overseas competitors
The market will now focus on HD Hyundai Heavy Industries' attractive valuation and the results of new businesses such as orders for land-based power generation engines and capacity expansion