Business · Companies · 1 hr ago
Kiwoom cuts HD Hyundai Heavy Industries price target but keeps Buy rating
Kiwoom Securities kept its Buy rating on HD Hyundai Heavy Industries but cut its price target from 880,000 won to 720,000 won.
The brokerage expects third-quarter operating profit to rise 64.8% year on year to 918.5 billion won, though still fall short of market forecasts.
It said fewer working days and a stronger won would weigh on results.
The shipbuilding business is expected to benefit from improved vessel mix and productivity, while eco-friendly engine sales are expected to grow as their share and prices rise.
By the end of August, the company had secured about $17.5 billion in new orders, equal to 86% of its target.
Merchant ships and engines had surpassed their order targets, but offshore and naval ship orders were lagging.
The brokerage expects engine earnings to support longer-term growth, while success in a bid for two floating production, storage and offloading vessels for Australia’s Browse project could bring offshore orders closer to target.
Kiwoom Securities lowered its price target for HD Hyundai Heavy Industries to 720,000 won from 880,000 won and kept its Buy rating.
Kiwoom expects the company’s third-quarter operating profit to rise 64.8% year on year to 918.5 billion won, but fall short of the market consensus.
It attributed the expected shortfall to nearly 20% fewer operating days than in the previous quarter and the effect of a stronger won.
Kiwoom expects improving ship mix and productivity, along with growth in eco-friendly engines, to support longer-term earnings.
As of the end of August, the company had secured about $17.5 billion in new orders, equal to 86% of its order target.
- Who
- Kiwoom Securities and HD Hyundai Heavy Industries.
- What
- Kiwoom cut its price target from 880,000 won to 720,000 won and maintained its Buy rating.
- When
- October 19, 2026.
- Where
- Not stated.
- Why
- Kiwoom cited expected short-term weakness but said the company’s medium- and long-term growth prospects remained intact.
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- Price target
- Cut from 880,000 won to 720,000 won
- Rating
- Buy maintained
- Third-quarter operating profit forecast
- 918.5 billion won, up 64.8% year on year
- Third-quarter revenue forecast
- 5.9568 trillion won, up 34.8% year on year
- Orders by end of August
- About $17.5 billion, or 86% of target
What people are saying
In the medium to long term, we expect the engine division's earnings to improve substantially and drive improvement in the company's overall profits.