HD Hyundai Marine Solution (443060) Q2 2024 earnings summary

Executive summary

• Achieved record-high revenue and operating profit in 2Q 2024, driven by robust growth across all business units and strong aftermarket performance.

• HD Hyundai Marine Solution posted H1 2024 revenue of ₩820.8B, with net income of ₩101.0B, reflecting robust performance in AM solutions, bunkering, and digital solutions.

• Completed a successful IPO in May 2024 and executed a capital increase, raising issued shares to 44.45M.

• Major business areas include AM solutions, eco-friendly retrofits, digital solutions, and bunkering, focusing on lifecycle services for large vessels.

• Profitability supported by a favorable product mix and increased demand for power plant O&M services.

Financial highlights

• Revenue reached KRW 4,379 hundred million in 2Q 2024, up 14.3% QoQ and 20.2% YoY.

• Operating income was KRW 710 hundred million in 2Q 2024, up 37.9% QoQ and 29.6% YoY; margin improved to 16.2%.

• H1 2024 net income: ₩101.0B; operating income: ₩23.1B; gross margin: 41.9%.

• Cash and equivalents at June 2024: ₩320.7B, up from ₩95.7B at end-2023.

• Dividend of ₩450 per share (₩20B total) approved in July 2024.

Outlook and guidance

• Business expansion expected to continue, with new solution needs identified in SDV and ongoing demand for power plant O&M.

• Plans to expand eco-friendly retrofits and digital platform business leveraging AI and data analytics.

• Bunkering business to shift toward biofuels and methanol in response to ESG trends.

• Aftermarket and core business segments anticipated to remain key revenue drivers.

• Targets a payout ratio of 50–70% of standalone net income for the next three years.