HD Hyundai Marine Engine (071970) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was ₩2,272 billion, up ₩611 billion year-over-year, driven by a recovery in shipbuilding and reduced delays at shipyards.

• Operating income reached ₩24.1 billion, up from ₩18.4 billion in the prior year, with net income at ₩25.6 billion.

• The company completed a major ownership change, with HD Korea Shipbuilding & Offshore Engineering becoming the largest shareholder at 35.05% after acquiring shares and participating in a rights offering.

• The company changed its name to HD Hyundai Marine Engine and was integrated into the HD Hyundai group.

Financial highlights

• Revenue: ₩2,272 billion for 2024 Q3 YTD, up from ₩1,661 billion year-over-year.

• Operating income: ₩24.1 billion (2024 Q3 YTD), up from ₩18.4 billion year-over-year.

• Net income: ₩25.6 billion (2024 Q3 YTD), up from ₩14.1 billion year-over-year.

• Basic EPS: ₩865 (2024 Q3 YTD), up from ₩499 year-over-year.

• Cash and cash equivalents at period end: ₩14.2 billion, down from ₩33.9 billion at the end of 2023.

• Gross margin improved as sales mix shifted toward higher-value products.

Outlook and guidance

• Shipbuilding market remains robust, with strong demand for LNG and container vessels, though some moderation in LNG orders is expected.

• The company is focusing on expanding its presence in eco-friendly engine markets and expects continued growth in dual-fuel engine demand.

• Ongoing cost control and productivity initiatives are expected to support margins.