HD Hyundai Marine Engine (071970) Q4 2024 earnings summary

Executive summary

• Revenue increased 29% year-over-year to KRW 315.8 billion, driven by higher demand for ship engines and crankshafts.

• Operating income rose 85% year-over-year to KRW 33.2 billion, with net income up 139% to KRW 75.8 billion.

• The company completed a major ownership change, joining the HD Hyundai group and raising capital through a KRW 42.2 billion rights issue.

• Significant asset sales, including the KRW 70 billion sale of the Naedong plant, improved liquidity and financial structure.

Financial highlights

• Gross profit margin improved to 22.0% from 17.3% year-over-year.

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

• Total assets increased 9% to KRW 495.0 billion, while total liabilities decreased 19% to KRW 185.6 billion.

• Net cash from operating activities was KRW 101.4 billion, with a significant reduction in short-term borrowings.

• Basic EPS rose to KRW 2,464 from KRW 1,226 year-over-year.

Outlook and guidance

• The company expects continued growth in the eco-friendly engine market, leveraging HD Hyundai group synergies.

• Ongoing investments in productivity and green engine capacity are planned for 2025–2027.

• Management highlights global shipbuilding demand and regulatory trends as key growth drivers.