ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Producer Manufacturing

Hyundai Heavy Industries Co., Ltd.

  • 108,000.00 KRW
  • 0.00
  • 0.00%
  • South Korea
    Aug 14, 2018
  • Ticker
    KRX(009540)
  • Prev. close
    108,000
  • Market cap (KRW)
    7,469.86B
  • Market cap (USD)
    6,622.51M
  • Shares
    69.16M

Company Background

South Korea's Hyundai Heavy Industries is one of the world's largest shipbuilders. It is also involved in oil refining through its subsidiary, Hyundai Oilbank. The company is one of the largest manufacturers in South Korea after Samsung Electronics, Hyundai Motor and others, with annual sales of around 50 trillion won.

Shipbuilding and oil refining are the company's two main sources of revenue. It also conducts business in areas such as offshore and engineering, construction equipment and electro electric systems.

The company's specialization in high-value-added vessels such as liquefied natural gas carriers and drill ships propelled it to the top of the shipbuilding industry in terms of volume years ago. Earnings, however, are precarious because of increased competition from Chinese rivals since the 2008 global financial crisis.

In the year ended December 2014, the company logged its biggest operating loss since its 1973 founding. It is now implementing structural reforms such as consolidating its group businesses, cutting jobs and reducing salaries. Unlike Hyundai Motor, which has a powerful labor union, relations between staff and management at Hyundai Heavy Industries are favorable. However, its unionized workers in 2014 staged their first strike in about 20 years to protest against the structural reforms.

Chung Mong-joon, the sixth son of the Hyundai conglomerate founder Chung Ju-yung, is the company's major shareholder. Chung, who has also served as chairman of the Korea Football Association and a member of the National Assembly, has decisive influence over the management of the company. Chung is expected to pass the baton to his son in the future.

Business Summary

Hyundai Heavy Industries Co., Ltd. engages in the manufacture and sale of steel ships. Its operations are carried out through the following divisions: Shipbuilding, Offshore and Engineering, Industrial Plant and Engineering, Engine and Machinery, Electro Electric Systems, Green Energy and Construction Equipment. The Shipbuilding division main products involve VLCCs, tankers, product carriers, chemical tankers, containerships, bulk carriers, OBO carriers, ro-pax ships, ro-ro ships, pure car carriers, LNG carriers, LPG carriers, submarines, destroyers and frigates. The Offshore and Engineering division has floating units, mixed platforms, pipelines and subsea facilities, offshore installations. The Industrial Plant and Engineering division offers combined cycle power plant, thermal power plant, oil and gas processing plant, LNG plant, refinery plant, petrochecmical plant, process equipment, nuclear component, boiler and HRSG. The Engine and Machinery division provides machine engine equipment, industrial machinery, power plant and robot system. The Electro Electric System offers transformers, GIS, switchgear, low and medium voltage circuit breakers, power electronics, rotating machinery, integrated control and monitoring systems. The company Green Energy division has solar power system and wind turbine system. The Construction Equipment division offers excavators, wheel loaders, backhoe loaders, forklift trucks and skid steer loaders. The company was founded by Chung Ju-Yung on December 28, 1973 and is headquartered in Ulsan, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue15,468.83B13,683.05M
Gross Profit999,239.51M883.88M
Operating income-1,458.37M-1.29M
Income before tax-26,905.46M-23.79M
Net income-193,108.34M-170.81M
EBITDA442,998.63M391.85M
Diluted EPS-1,902.65-1.68
Dividends Per Share00
Total Assets30,408.84B28,404.88M
Total liabilities18,465.39B17,248.51M
Total equity10,692.85B9,988.18M
Operating cash flow978,574.01M865.60M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 54,188.09B 52,582.40B 46,231.71B 22,300.43B 15,468.83B
Gross Profit 3,166.21B -810,113.57M 1,455.73B 1,932.18B 999,239.51M
Operating income 766,067.01M -3,227.74B -1,548.57B 391,985.68M -1,458.37M
Income before tax 144,293.33M -3,105.04B -1,841.41B 96,027.01M -26,905.46M
Net income 278,705.51M -1,769.92B -1,370.20B -42,967.51M -193,108.34M
EBITDA 1,747.21B -2,209.57B -480,336.18M 847,265.68M 442,998.63M
Diluted EPS 6,452.50 -40,974.09 -31,129.77 11,209.73 -1,902.65
Dividends Per Share 2,556.96 2,556.96 -- -- 0
Total Assets 53,204.97B 53,384.41B 49,732.83B 49,249.17B 30,408.84B
Total liabilities 34,175.37B 37,174.43B 34,662.46B 31,788.01B 18,465.39B
Total equity 17,249.59B 14,745.19B 13,307.53B 15,507.86B 10,692.85B
Operating cash flow 2,617.59B 1,691.67B -680,519.06M 2,055.03B 978,574.01M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 49,497.57M 49,952.01M 40,847.82M 19,221.37M 13,683.05M
Gross Profit 2,892.14M -769.58M 1,286.20M 1,665.40M 883.88M
Operating income 699.75M -3,066.28M -1,368.23M 337.86M -1.29M
Income before tax 131.80M -2,949.71M -1,626.97M 82.76M -23.79M
Net income 254.58M -1,681.38M -1,210.63M -37.03M -170.81M
EBITDA 1,595.97M -2,099.04M -424.39M 730.28M 391.85M
Diluted EPS 5.89 -38.92 -27.50 9.66 -1.68
Dividends Per Share 2.33 2.42 -- -- 0
Total Assets 50,414.52M 48,568.81M 42,414.25M 40,775.93M 28,404.88M
Total liabilities 32,382.98M 33,821.07M 29,561.60M 26,318.93M 17,248.51M
Total equity 16,344.90M 13,415.08M 11,349.22M 12,839.76M 9,988.18M
Operating cash flow 2,391.01M 1,607.05M -601.26M 1,771.29M 865.60M

Valuation Measures

Dec 2017
PER--
ROA-0.48%
ROE-1.47%
Operating margin-0.00%
Profit margin-1.24%

Key executives

  • Vice Chairman & Co-Chief Executive Officer: Oh-Gap Kwon
  • President, Co-Chief Executive Officer & Director: Hwan-Goo Kang
  • President & Director: Sam-Hyeon Gah
  • Chief Financial Officer: Young-Chul Cho
  • Vice President & Head-Compliance Management: Sea-Heon Oh

Shareholders

  • Hyundai Heavy Industries Holdings Co., Ltd. (27.7%)
  • National Pension Service of Korea (9.1%)
  • KCC Corp. (6.0%)
  • Hyundai Mipo Dockyard Co., Ltd. (3.9%)
  • Hyundai Motor Co., Ltd. (2.4%)
  • Asan Foundation (2.4%)
  • The Vanguard Group, Inc. (1.4%)
  • BlackRock Fund Advisors (1.1%)
  • Norges Bank Investment Management (0.6%)
  • Asan Nanum Foundation (0.6%)

Contact Details

  • Website:http://www.hhi.co.kr
  • Address: 1000 Bangeojin Sunhwan-doro, Dong-gu, Ulsan, 44032, South Korea
  • Phone: +82.52.202.2114

Related Companies

  • Hyundai Global Service Co. Ltd.
  • Hotel Hyundai Vladivostock
  • Hyundai Heavy Industries Co. Ltd. /3 Subs/
  • Hyundai Heavy Industries Green Energy Co. Ltd.
  • Hyundai Heavy Industries Turbo Machine Co. Ltd.
  • Hyundai Electrosystems LLC
  • Hyundai Commercial Center Kazakhstan LLC
  • Hyundai Financial Leasing Co., Ltd.
  • Songjae Industries Co., Ltd.
  • Taebaek Wind Power Co., Ltd.
  • Hyundai Heavy Industries Brasil-Industria e Comercio de Equi
  • Hyundai Power Transformers USA, Inc.
  • Changzhou Hyundai Hydraulic Machinery Co. Ltd.
  • Hyundai (Shandong) Heavy Industries Machinery Co. Ltd.
  • Hyundai (Jiangsu) Construction Machinery Co. Ltd.
  • Hyundai Oil Singapore Pte Ltd.
  • PT Hyundai Machinery Indonesia
  • Hyundai Energy & Resources Co., Ltd.
  • Yantai Hyundai Heavy Industries Co. Ltd.
  • Hyundai Construction Equipment Maroc SARL
  • Hyundai Heavy Industries
  • Hyundai Construction Equipment Australia Pty Ltd.
  • Hyundai Construction Equipment Service Co. Ltd.
  • Hyundai Heavy Industries Co., Ltd. ESOA
  • Wartsila Hyundai Engine Co. Ltd.
  • Hyundai Heavy Industries France
  • Hyundai Construction Equipment Europe BV
  • Hyundai Engineer Construction Co. Ltd.
  • Hyundai Fiber Co., Ltd.
  • Hyundai Hellas P&R Davari SA

Competitors

  • ABB Ltd.
  • Wartsila Oyj Abp
  • Caterpillar Inc.
  • Doosan Infracore Co., Ltd
  • Samsung Heavy Industries Co., Ltd
  • McDermott International, Inc.
  • TechnipFMC Plc
  • Daewoo Shipbuilding & Marine Engineering Co., Ltd
  • SK Innovation Co., Ltd
  • Siemens AG
  • China CSSC Holdings Limited Class A
  • Doosan Heavy Industries & Construction Co., Ltd.
  • MAN SE
  • Komatsu Ltd.
  • Hyosung Corporation
  • China Shipbuilding Industry Company Limited Class A
  • Mitsui & Co.,Ltd
  • SolarWorld AG
  • Loncin Motor Co., Ltd. Class A
  • JFE Holdings, Inc.
  • Hanwha Corp
  • GS Holdings Corp.
  • S-Oil Corporation
  • Saipem S.p.A.
  • Hyundai Engineering & Construction Co., Ltd
  • STX Corporation
  • LG Corp
  • Samsung C&T Corp
  • Alstom SA
  • Doosan Corporation
Last Updated on 14 Aug, 2018

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

3 months for $9

Get unlimited access
NAR site on phone, device, tablet

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media