[Click eStock] "HD Hyundai Heavy Industries to Expand U.S. Business in Second Half... Target Price Raised"

by Kwon Hyeonji

Published 21 Apr.2025 15:51(KST)

On April 21, NH Investment & Securities raised its target price for HD Hyundai Heavy Industries by 20% to 434,000 won, reflecting expectations of sales growth driven by the company's expansion in the United States. The firm maintained its 'Buy' investment rating.

Jung Yeonseung, a researcher at NH Investment & Securities, stated, "This year, the U.S. naval ship maintenance, repair, and overhaul (MRO) business, as well as policy changes and increased fiscal support in the United States, are expected to gain momentum." He added, "The visibility of sales expansion through either the construction of U.S. naval vessels or strengthened local partnerships is expected to gradually increase in the second half of the year."

HD Hyundai Heavy Industries has secured $4.7 billion in orders so far this year, achieving 38% of its annual order target of $12.6 billion. Orders for large container ships and marine engines have been strong, and additional orders for LNG carriers, offshore plants, and domestic and overseas special ship projects are anticipated in the second half. Jung noted, "If global LNG carrier orders exceed 40 vessels in the second half, the depletion of remaining slots could trigger another upward trend in newbuilding prices." He further explained, "Although global ship orders are sluggish compared to last year, major domestic shipyards are still likely to achieve their order targets."

First-quarter sales are projected to reach 3.83 trillion won, up 28.1% year-on-year, while operating profit is expected to surge by 1,143% to 264.4 billion won. The company is expected to maintain its recovery, supported by favorable exchange rates and increased engine sales. Jung pointed out, "With costs such as labor and thick steel plate prices stabilizing, continued sales growth is expected to further improve profitability."