HD Hyundai Marine Engine (A071970) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was 146.5 billion KRW, up 51.3% year-over-year, driven by recovery in shipbuilding and reduced process delays at shipyards.

• Operating income reached 15.3 billion KRW, with net income at 16.1 billion KRW for the half-year.

• The company completed a major ownership change, with HD Korea Shipbuilding & Offshore Engineering acquiring a 35.05% stake and becoming the largest shareholder as of July 2024.

• The company changed its name to HD Hyundai Marine Engine Co., Ltd. and joined the HD Hyundai Group.

Financial highlights

• H1 2024 revenue: 146.5 billion KRW (up from 96.8 billion KRW in H1 2023).

• Operating profit: 15.3 billion KRW (up from 5.1 billion KRW in H1 2023).

• Net profit: 16.1 billion KRW (up from 5.9 billion KRW in H1 2023).

• Gross margin improved to 44.2% in H1 2024 from 32.7% in H1 2023.

• Basic EPS: 329 KRW (H1 2024), up from 206 KRW (H1 2023).

Outlook and guidance

• The shipbuilding market remains robust, with strong order backlogs and increased demand for eco-friendly engines.

• The company is focusing on expanding its eco-friendly engine portfolio and strengthening partnerships with major shipyards.

• No ongoing construction contracts as of H1 2024; engine and equipment order backlog not disclosed due to competitive reasons.