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Producer Manufacturing

Doosan Heavy Industries & Construction Co., Ltd.

Company Background

Doosan Heavy Industries & Construction is a South Korean maker of electric power plants and large transport machinery such as port cranes. Doosan Heavy is the core company of Doosan group, a renowned South Korean conglomerate that has a history of more than 100 years and has sent many top executives to head the Korea Chamber of Commerce and Industry.

But Doosan Heavy joined the group as recently as in 2001. Hyundai Yanghaeng, founded in 1962, became government-owned and was then purchased by Doosan, the holding company of the group. As a result, it has adopted its current name.

Park Gee-won, vice chairman and CEO of Doosan Heavy Industries, is from the founding family of Doosan group. His uncle Park Yong-maan is the owner and manager of the group serving as chairman of Doosan, while elder brother Park Jeong-won also holds a key post in the group.

With its pressured-water reactor technology, Doosan Heavy has been involved in the construction of most of the nuclear power plants in South Korea. It has tied up with Westinghouse Electric, a U.S. company belonging to Japan's Toshiba.

The South Korean government is seeking to increase exports of nuclear power plants as a national policy. In 2009, a consortium of South Korean companies concluded a deal to build four nuclear power plants in the Emirate of Abu Dhabi, one of the seven states forming the United Arab Emirates, marking South Korea's first nuclear power plant export. Along with firms such as Korea Electric Power, Doosan Heavy is a key member of the consortium.

Also engaging in water-processing work such as desalination of seawater, factory disposal and sewage treatment, Doosan Heavy has won orders from Saudi Arabia and other countries.

Business Summary

Doosan Heavy Industries & Construction Co., Ltd. engages in the provision of water treatment, construction and power plant projects. It operates through the following business areas: Power Generation, Water, Industry, Castings and Forgings, and Construction. The Power Generation business offers power plants, power generation equipment, retrofits and upgrades. The Water business provides seawater desalination plants and water treatment systems. The Castings and Forgings business engages in power generation, shipbuilding, iron and steel making, petrochemical and industrial components, mold and tool steel production. The Construction business involves in different plants, civil engineering and architecture. The company was founded on September 20, 1962 and is headquartered in Changwon, South Korea.

Financial Highlights

Dec 2018 KRWUSD
Revenue14,761.06B13,412.83M
Gross Profit2,511.14B2,281.78M
Operating income655,701.98M595.81M
Income before tax-105,229.24M-95.61M
Net income-451,704.56M-410.44M
EBITDA1,147.60B1,042.78M
Diluted EPS-3,882.27-3.52
Dividends Per Share00
Total Assets24,814.91B22,239.56M
Total liabilities18,596.48B16,666.50M
Total equity2,804.84B2,513.75M
Operating cash flow989,560.09M899.17M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 18,127.52B 14,470.54B 13,952.27B 13,841.32B 14,761.06B
Gross Profit 2,951.12B 2,059.05B 2,362.92B 2,415.22B 2,511.14B
Operating income 826,242.83M -310,588.74M 588,177.94M 735,169.98M 655,701.98M
Income before tax -106,251.88M -1,531.02B -244,298.47M 130,869.12M -105,229.24M
Net income -94,675.17M -996,943.76M -256,393.15M -240,200.53M -451,704.56M
EBITDA 1,396.77B 272,677.25M 1,109.65B 1,230.67B 1,147.60B
Diluted EPS -764.26 -8,383.74 -3,718.03 -2,385.57 -3,882.27
Dividends Per Share 660.07 748.08 484.05 0 0
Total Assets 27,551.90B 27,260.14B 24,832.56B 24,962.31B 24,814.91B
Total liabilities 19,874.90B 20,234.03B 18,009.73B 18,396.37B 18,596.48B
Total equity 4,659.41B 3,580.66B 3,475.66B 3,386.80B 2,804.84B
Operating cash flow 603,808.92M -74,372.14M 967,566.78M 429,324.78M 989,560.09M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 17,220.70M 12,785.39M 12,025.86M 12,243.43M 13,412.83M
Gross Profit 2,803.49M 1,819.26M 2,036.67M 2,136.40M 2,281.78M
Operating income 784.91M -274.41M 506.96M 650.29M 595.81M
Income before tax -100.93M -1,352.73M -210.56M 115.76M -95.61M
Net income -89.93M -880.84M -220.99M -212.47M -410.44M
EBITDA 1,326.90M 240.92M 956.44M 1,088.59M 1,042.78M
Diluted EPS -0.72 -7.40 -3.20 -2.11 -3.52
Dividends Per Share 0.62 0.66 0.41 0 0
Total Assets 25,066.55M 23,248.59M 20,560.16M 23,317.28M 22,239.56M
Total liabilities 18,082.06M 17,256.43M 14,911.19M 17,184.03M 16,666.50M
Total equity 4,239.11M 3,053.74M 2,877.67M 3,163.61M 2,513.75M
Operating cash flow 573.60M -65.71M 833.97M 379.76M 899.17M

Valuation Measures

Dec 2018
PER--
ROA-1.81%
ROE-14.59%
Operating margin4.44%
Profit margin-3.06%

Key executives

  • Co-Chief Executive Officer & Director: Ji-Won Park
  • Co-CEO, Director & Head-Finance Management: Hyoung-Hee Choi
  • Co-Chief Executive Officer & Director: Myung-Woo Kim
  • Vice President: Gi-Ryong Ha
  • Vice President & Head-Marketing: Sung-Won Kim

Shareholders

  • Doosan Corp. (34.3%)
  • Doosan Heavy Industries & Construction Co., Ltd. ESOA (8.3%)
  • National Pension Service of Korea (2.7%)
  • The Vanguard Group, Inc. (1.5%)
  • Dimensional Fund Advisors LP (1.3%)
  • Samsung Asset Management Co., Ltd. (0.7%)
  • BlackRock Fund Advisors (0.6%)
  • Norges Bank Investment Management (0.5%)
  • Mirae Asset Global Investments Co., Ltd. (0.3%)
  • Research Affiliates LLC (0.3%)

Contact Details

Related Companies

  • Doosan Gridtech Services LLC
  • Happy Tomorrow 27th Co., Ltd.
  • Doosan Heavy Industries America Holdings, Inc.
  • Doosan Gridtech, Inc.
  • Doosan Heavy Industries Vietnam Haiphong Co. Ltd.
  • Doosan International South Africa (Pty) Ltd.
  • Doosan Enpure Ltd.
  • Doosan Power Systems India Pvt Ltd.
  • Doosan Heavy Industries Vietnam Co. Ltd.
  • AE&E Chennai Works Pvt Ltd.
  • AE&E I.D.E.A. (India) Pvt Ltd.
  • Doosan IMGB SA
  • Doosan Power Systems Holdings Ltd.
  • Doosan International India Pvt Ltd.
  • ACT Independent Turbo Services, Inc.
  • Doosan Heavy Industries America Corp.
  • Doosan Skoda Power s.r.o.
  • N. Shaper, Inc.
  • Kvaerner IMGB
  • American Engineering Services, Inc. /RO-Type Ops/
  • Doosan Heavy Industries & Construction Co., Ltd. ESOA
  • Doosan Babcock Ltd.
  • Doosan Engineering & Construction Co., Ltd

Competitors

  • Volvo AB Class B
  • Caterpillar Inc.
  • Komatsu Ltd.
  • Hitachi Construction Machinery Co., Ltd.
  • Dongbu Corporation
  • Kye-Ryong Construction Industrial Co., Ltd.
  • CNIM Group SA
  • Hyundai Construction Equipment Co., Ltd.
  • BHI Co., Ltd.
  • PBG S.A.
  • Hyunjin Materials Co., Ltd
  • Dongkuk Structures & Construction Co., Ltd.
  • Veolia Environnement SA
  • Teradyne, Inc.
  • BWX Technologies, Inc.
Last Updated on 14 Oct, 2019

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