Producer Manufacturing
Hyundai Heavy Industries Co., Ltd.
- 124,000.00 KRW
- 0.00
- 0.00%
South Korea
Sep 18, 2019Ticker
KRX(009540)Prev. close
124,000Market cap (KRW)
8,775.86BMarket cap (USD)
7,366.01MShares
70.77M
In the news
- Hyundai Heavy eyes shipbuilding merger amid Japan trade row Aug 28, 2019
- Philippine Navy looks to join rescue bid for Subic shipyard Mar 4, 2019
- South Korea to seize on world's first full 5G network Mar 2, 2019
- South Korea plans aid for shipbuilder hurt by Philippine yard Feb 14, 2019
- Hyundai Heavy sets March goal for Daewoo Shipbuilding deal Feb 2, 2019 See more articles on Hyundai Heavy Industries Co., Ltd.
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
Korea Shipbuilding & Offshore Engineering 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 Seoul, South Korea.
Financial Highlights
| Dec 2018 | KRW | USD |
| Revenue | 13,119.89B | 11,921.55M |
| Gross Profit | 321,376.72M | 292.02M |
| Operating income | -531,672.01M | -483.11M |
| Income before tax | -854,036.98M | -776.03M |
| Net income | -677,539.78M | -615.65M |
| EBITDA | -136,698.01M | -124.21M |
| Diluted EPS | -8,061.42 | -7.32 |
| Dividends Per Share | 0 | 0 |
| Total Assets | 24,729.89B | 22,163.37M |
| Total liabilities | 12,047.52B | 10,797.20M |
| Total equity | 11,453.63B | 10,264.95M |
| Operating cash flow | -777,611.37M | -706.58M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 52,582.40B | 46,231.71B | 22,300.43B | 15,468.83B | 13,119.89B |
| Gross Profit | -810,113.57M | 1,455.73B | 1,932.18B | 999,239.51M | 321,376.72M |
| Operating income | -3,227.74B | -1,548.57B | 391,985.68M | -1,458.37M | -531,672.01M |
| Income before tax | -3,105.04B | -1,841.41B | 96,027.01M | -26,905.46M | -854,036.98M |
| Net income | -1,769.92B | -1,370.20B | -42,967.51M | -193,108.34M | -677,539.78M |
| EBITDA | -2,209.57B | -480,336.18M | 847,265.68M | 442,998.63M | -136,698.01M |
| Diluted EPS | -40,974.09 | -31,129.77 | 11,209.73 | -1,902.65 | -8,061.42 |
| Dividends Per Share | 2,556.96 | -- | -- | 0 | 0 |
| Total Assets | 53,384.41B | 49,732.83B | 49,249.17B | 30,408.84B | 24,729.89B |
| Total liabilities | 37,174.43B | 34,662.46B | 31,788.01B | 18,465.39B | 12,047.52B |
| Total equity | 14,745.19B | 13,307.53B | 15,507.86B | 10,692.85B | 11,453.63B |
| Operating cash flow | 1,691.67B | -680,519.06M | 2,055.03B | 978,574.01M | -777,611.37M |
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 49,952.01M | 40,847.82M | 19,221.37M | 13,683.05M | 11,921.55M |
| Gross Profit | -769.58M | 1,286.20M | 1,665.40M | 883.88M | 292.02M |
| Operating income | -3,066.28M | -1,368.23M | 337.86M | -1.29M | -483.11M |
| Income before tax | -2,949.71M | -1,626.97M | 82.76M | -23.79M | -776.03M |
| Net income | -1,681.38M | -1,210.63M | -37.03M | -170.81M | -615.65M |
| EBITDA | -2,099.04M | -424.39M | 730.28M | 391.85M | -124.21M |
| Diluted EPS | -38.92 | -27.50 | 9.66 | -1.68 | -7.32 |
| Dividends Per Share | 2.42 | -- | -- | 0 | 0 |
| Total Assets | 48,568.81M | 42,414.25M | 40,775.93M | 28,404.88M | 22,163.37M |
| Total liabilities | 33,821.07M | 29,561.60M | 26,318.93M | 17,248.51M | 10,797.20M |
| Total equity | 13,415.08M | 11,349.22M | 12,839.76M | 9,988.18M | 10,264.95M |
| Operating cash flow | 1,607.05M | -601.26M | 1,771.29M | 865.60M | -706.58M |
Valuation Measures
| Dec 2018 | |
| PER | -- |
| ROA | -2.45% |
| ROE | -6.11% |
| Operating margin | -4.05% |
| Profit margin | -5.16% |
Key executives
- Chief Executive Officer & Director: Oh-Gap Kwon
- Chief Financial Officer & Director: Young-Chul Cho
- Vice President & Head-Compliance Management: Sea-Heon Oh
- Vice President: Ki-Sun Jung
- Vice President & Head-Management Support: Jin-Yul No
Shareholders
- Hyundai Heavy Industries Holdings Co., Ltd. (30.9%)
- National Pension Service of Korea (9.1%)
- KCC Corp. (6.6%)
- Hyundai Heavy Industries Co., Ltd. ESOA (3.3%)
- Asan Foundation (2.3%)
- Hyundai Motor Co., Ltd. (2.3%)
- The Vanguard Group, Inc. (1.6%)
- BlackRock Fund Advisors (1.2%)
- Dimensional Fund Advisors LP (0.8%)
- Norges Bank Investment Management (0.8%)
Contact Details
- Website:http://www.hhi.co.kr
- Address: 14th Floor, Hyundai Building, 75 Yulgok-ro, Seoul, 03058, South Korea
- Phone: +82.52.202.2114
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- 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
- Hyundai Heavy Industries Europe
Competitors
- Wartsila Oyj Abp
- Samsung Heavy Industries Co., Ltd
- Daewoo Shipbuilding & Marine Engineering Co., Ltd
- IHI Corporation
- China CSSC Holdings Limited Class A
- Hitachi Zosen Corporation
- China Shipbuilding Industry Company Limited Class A
- Volkswagen AG Pref
- Yangzijiang Shipbuilding (Holdings) Ltd.
- JFE Holdings, Inc.
- Doosan Corporation
- Hyundai Heavy Industries Holdings Co., Ltd.
- Caterpillar Inc.
- CSBC Corp. Taiwan
- HSD Engine Co., Ltd
- STX Engine Co., Ltd.
- SPX Corporation
- Petrofac Limited
- Gaztransport & Technigaz SA
- BHI Co., Ltd.
- TechnipFMC Plc
- McDermott International, Inc.
- Hanjin Heavy Industries & Construction Co., Ltd
- Daesung Industrial Co., Ltd
- Hyundai Mipo Dockyard Co., Ltd
- SunPower Corporation
- Hyunjin Materials Co., Ltd
- Firstec Co., Ltd
- Xiamen Savings Environmental Co., Ltd. Class A
- Genie Energy Ltd. Class B
Copyright © 2019 FactSet Research Systems Inc. All rights reserved.
Last Updated on 18 Sep, 2019