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Industrial Services

Hyundai Engineering & Construction Co., Ltd.

  • 60,200.00 KRW
  • -100.00
  • -0.17%
  • South Korea
    Aug 17, 2018
  • Ticker
    KRX(000720)
  • Prev. close
    60,300
  • Market cap (KRW)
    6,714.75B
  • Market cap (USD)
    5,970M
  • Shares
    111.35M

Company Background

Hyundai Engineering & Construction is a major South Korean general contractor founded in 1950. The company has its roots in Hyundai Civil Works, which was established in 1947.

The company boosted earnings by winning contracts for infrastructure development projects in South Korea and construction works in the Middle East. It is one of the companies that led South Korea's economic growth, referred to as "the Miracle on the Han River," during the 1970s and 1980s. Lee Myung-bak, the company's former chief executive, served as president of South Korea between 2008 and 2013.

Uncollectible accounts receivables resulting from the 1997 Asian currency crisis and other factors caused the company to become virtually bankrupt. The company briefly bolted from Hyundai group to be placed under receivership of creditor banks. However, after restructuring through personnel cuts and other measures, Hyundai Motor brought the company under its wing after a takeover battle in 2011.

Currently, Hyundai Engineering & Construction is one of the leading companies comprising Hyundai Motor group, alongside steelmaker Hyundai Steel and rail manufacturer Hyundai Rotem.

The company's largest division, which deals with plant construction, participated in a 2009 nuclear power plant construction project in the United Arab Emirates. It was South Korea's first time to export a nuclear power plant. The company's other main businesses include building works, and infrastructure and environmental division.

Business Summary

HYUNDAI ENGINEERING & CONSTRUCTION Co., Ltd. engages in the civil engineering and construction business. It operates through the following Business Divisions: Infrastructure and Environment, Construction, Plant and Power Plant, and the Other. The Infrastructure and Environment business offers construction of roads, bridges and housing site development. The Consturction division provides construction of skyscrapers, housing work and buildings. The Plant and Power Plant business provides construction of hydrocarbon processing and industrial plants. The Other division offers property development, software installation, and others. The company was founded by Chung Ju-Yung on January 10, 1950 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue16,887.09B14,937.58M
Gross Profit1,707.84B1,510.68M
Operating income870,142M769.68M
Income before tax554,829M490.77M
Net income201,697M178.41M
EBITDA1,064.70B941.78M
Diluted EPS1,8101.60
Dividends Per Share5000.44
Total Assets18,431.90B17,217.22M
Total liabilities9,958.96B9,302.66M
Total equity6,467.64B6,041.42M
Operating cash flow514,404M455.01M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 13,938.28B 17,386.95B 19,122.05B 18,825.01B 16,887.09B
Gross Profit 1,198.21B 1,493.53B 1,529.80B 1,864.30B 1,707.84B
Operating income 765,184M 907,348M 923,938M 1,127.22B 870,142M
Income before tax 774,589M 816,446M 797,698M 981,478M 554,829M
Net income 503,634M 419,665M 367,901M 572,112M 201,697M
EBITDA 858,451M 1,061.40B 1,119.76B 1,318.42B 1,064.70B
Diluted EPS 4,518.73 3,765.34 3,300.90 5,133 1,810
Dividends Per Share 500 500 500 500 500
Total Assets 14,733.21B 18,439.69B 19,458.53B 19,873.44B 18,431.90B
Total liabilities 9,530.13B 11,473.38B 11,967.26B 11,748.79B 9,958.96B
Total equity 4,883.74B 5,443.84B 5,820.90B 6,329.02B 6,467.64B
Operating cash flow 116,074M 426,034M 595,990M 1,086.52B 514,404M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 12,731.78M 16,517.19M 16,895.20M 16,225.80M 14,937.58M
Gross Profit 1,094.49M 1,418.82M 1,351.65M 1,606.89M 1,510.68M
Operating income 698.94M 861.95M 816.34M 971.58M 769.68M
Income before tax 707.54M 775.60M 704.80M 845.96M 490.77M
Net income 460.03M 398.67M 325.05M 493.11M 178.41M
EBITDA 784.14M 1,008.31M 989.36M 1,136.38M 941.78M
Diluted EPS 4.12 3.57 2.91 4.42 1.60
Dividends Per Share 0.45 0.47 0.44 0.43 0.44
Total Assets 13,960.49M 16,776.32M 16,595.05M 16,454.24M 17,217.22M
Total liabilities 9,030.30M 10,438.41M 10,206.18M 9,727.43M 9,302.66M
Total equity 4,627.60M 4,952.77M 4,964.31M 5,240.12M 6,041.42M
Operating cash flow 106.02M 404.72M 526.58M 936.50M 455.01M

Valuation Measures

Dec 2017
PER20.05
ROA1.05%
ROE3.15%
Operating margin5.15%
Profit margin1.19%

Key executives

  • President, Chief Executive Officer & Director: Soo-Hyun Jung
  • Managing Director & Head-Finance: Kwang-Pyung Kim
  • Managing Director & Head-Construction Technology: Seong-Min Park
  • Managing Director & Head-Information Technology: Jong-Won Kim
  • Senior MD, Head-Energy Research & Development: Seok-Hong Lee

Shareholders

  • Hyundai Motor Co., Ltd. (20.9%)
  • National Pension Service of Korea (11.2%)
  • Hyundai Mobis Co., Ltd. (8.7%)
  • Kia Motors Corp. (5.2%)
  • Dimensional Fund Advisors LP (1.9%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.5%)
  • Norges Bank Investment Management (0.9%)
  • BlackRock Advisors (UK) Ltd. (0.4%)
  • Mirae Asset Global Investments Co., Ltd. (0.3%)

Contact Details

  • Website:http://www.hdec.co.kr
  • Address: 75 Yulgok-ro, Jongno-gu, Seoul, 03058, South Korea
  • Phone: +82.2.1577.7755

Related Companies

  • Hyundai Engineering & Construction Ltd. (Vietnam)
  • Hyundai Engineering Mexico S de RL de CV
  • Songdo Landmark City LLC
  • Hyundai Architects & Engineers Assoc
  • Hyundai Engineering & Construction Co. Ltd. (Kuwait)
  • Hyundai Engineering & Construction (India) Ltd.
  • Hyundai City Developement Co., Ltd.
  • Hyundai Farmland & Development Co. Ltd.
  • Hyundai Engineering & Steel Industries Co., Ltd.
  • Hyeondae Architects & Engineers Associates Co. Ltd.
  • Hyundai Engineering Co., Ltd.
  • Hyundai Engineering & Construction Co., Ltd. ESOA

Competitors

  • Kye-Ryong Construction Industrial Co., Ltd.
  • Daelim Industrial Co., Ltd
  • Kumho Industrial Co., Ltd.
  • KCC Engineering & Construction Co., Ltd
  • Hanjin Heavy Industries & Construction Co., Ltd
  • Hanjin Heavy Industries & Construction Holdings Co., Ltd.
  • Seohee Construction Co., Ltd.
  • Dongbu Corporation
  • Fluor Corporation
  • Actividades de Construccion y Servicios SA
  • Hyundai Heavy Industries Co., Ltd.
Last Updated on 17 Aug, 2018

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