HD Hyundai Marine Engine (A071970) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of 315.8 billion KRW, up 29% year-over-year, driven by strong demand for ship engines and parts.

• Operating income rose 85% to 33.2 billion KRW, with net income surging 139% to 75.8 billion KRW.

• HD Hyundai Marine Engine was integrated into the HD Hyundai Group, with a new majority shareholder and a major capital increase.

• Completed sale of idle assets (Nae-dong plant) for 70 billion KRW to improve liquidity and financial structure.

Financial highlights

• Revenue: 315.8 billion KRW (+29% YoY); Operating income: 33.2 billion KRW (+85% YoY); Net income: 75.8 billion KRW (+139% YoY).

• Gross margin improved to 22.0% from 17.4% a year earlier.

• Cash and equivalents at year-end: 59.8 billion KRW, up from 33.9 billion KRW.

• Total assets: 494.9 billion KRW (+9% YoY); Total liabilities: 185.6 billion KRW (-19% YoY); Equity: 309.4 billion KRW (+37% YoY).

• R&D expenses: 10.6 billion KRW (3.2% of sales), focused on eco-friendly engine and fuel cell technology.

Outlook and guidance

• Expects continued growth in ship engine and parts demand, supported by global environmental regulations and aging fleets.

• Integration into HD Hyundai Group to drive synergies and expand market share.

• Ongoing investments in eco-friendly engine production and productivity enhancements.