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Non-Energy Minerals

Hyundai Steel Co.

Company Background

Hyundai Steel is the second-largest steelmaker in South Korea, after Posco. In 2014, it ranked 14th in the world, with annual crude steel production of 20.58 million tons.

The company in 2013 started its third blast furnace in Dangjin, South Chungcheong Province. This put it in position to meet growing demand from Hyundai Motor and Kia Motors for automotive steel sheet.

Established in 1953 as Korea Heavy Industry, the company was privatized as Incheon Heavy Industry in 1962. It became a subsidiary of Hyundai Motor group via dissolution of big conglomerates, known as chaebol, after the 1997 Asian currency crisis. Although the company originally relied on electric furnaces, it entered the blast furnace business in 2006. It has the capacity to produce a total of 24 million tons of crude steel a year, including 12 million tons by blast furnaces.

Hyundai Steel group's blast furnaces have allowed it to snatch market share from rival Posco by increasing sales of automotive sheet to Hyundai Motor, as well as heavy-gauge sheet for shipbuilding. In 2015, the company decided to acquire fellow group member Hyundai Hysco, which is known for cold-rolled steel and development of lightweight sheet for vehicles. The company hopes to boost sales by pooling their resources.

Posco outperforms Hyundai Steel in markets for certain high-grade products, such as grain-oriented electrical steel sheet and transformation induced plasticity, or TRIP, steel. Although Hyundai Steel is buttressed by the Hyundai Motor group, it needs to improve its development capabilities and drum up business outside the group.

Business Summary

Hyundai Steel Co. engages in the manufacture and sale of steel products. Its products include bar-shaped steel, board, and heavy machines for construction, industrial, automobile, half-finished products, and by-products. The company was founded on June 10, 1953 and is headquartered in Incheon, South Korea.

Financial Highlights

Dec 2019 KRWUSD
Revenue20,512.59B17,589.49M
Gross Profit1,393.02B1,194.51M
Operating income331,316.01M284.10M
Income before tax44,083.29M37.80M
Net income17,104.66M14.66M
EBITDA1,879.08B1,611.31M
Diluted EPS130.300.11
Dividends Per Share7500.64
Total Assets34,366.33B29,717.09M
Total liabilities17,132.59B14,814.81M
Total equity16,898.37B14,612.28M
Operating cash flow628,329.18M538.79M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 16,132.51B 16,691.51B 19,165.96B 20,780.38B 20,512.59B
Gross Profit 2,423.94B 2,453.07B 2,425.88B 2,064.56B 1,393.02B
Operating income 1,464.14B 1,445.41B 1,347.70B 1,026.03B 331,316.01M
Income before tax 926,727.41M 1,173.96B 1,081.28B 569,810.30M 44,083.29M
Net income 733,620.69M 850,155.15M 716,090.43M 398,674.37M 17,104.66M
EBITDA 2,737.68B 2,832.81B 2,851.96B 2,616.74B 1,879.08B
Diluted EPS 5,955 6,492 5,455 3,037.04 130.30
Dividends Per Share 750 750 750 750 750
Total Assets 31,936.43B 32,540.83B 33,373.82B 33,304.91B 34,366.33B
Total liabilities 16,416.43B 16,056.04B 16,338.30B 16,281.78B 17,132.59B
Total equity 15,242.02B 16,176.24B 16,715.54B 16,696.01B 16,898.37B
Operating cash flow 3,065.57B 2,916.56B 1,719.76B 1,575.27B 628,329.18M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 14,253.81M 14,386.88M 16,953.37M 18,882.36M 17,589.49M
Gross Profit 2,141.66M 2,114.37M 2,145.82M 1,875.99M 1,194.51M
Operating income 1,293.63M 1,245.84M 1,192.12M 932.31M 284.10M
Income before tax 818.80M 1,011.87M 956.45M 517.76M 37.80M
Net income 648.18M 732.77M 633.42M 362.26M 14.66M
EBITDA 2,418.87M 2,441.68M 2,522.72M 2,377.73M 1,611.31M
Diluted EPS 5.26 5.59 4.82 2.75 0.11
Dividends Per Share 0.66 0.64 0.66 0.68 0.64
Total Assets 27,236.73M 26,942.23M 31,174.46M 29,848.46M 29,717.09M
Total liabilities 14,000.62M 13,293.62M 15,261.59M 14,592.02M 14,814.81M
Total equity 12,999.03M 13,393.14M 15,613.97M 14,963.26M 14,612.28M
Operating cash flow 2,708.57M 2,513.87M 1,521.23M 1,431.39M 538.79M

Valuation Measures

Dec 2019
PER241.36
ROA0.05%
ROE0.10%
Operating margin1.61%
Profit margin0.08%

Key executives

  • President, Chief Executive Officer & Director: Tong-Il An
  • Director & Head-Finance: Kang-Hyun Seo
  • Managing Director & Head-Process Technology: Ju-Tae Choi
  • Vice President, Head-Research & Development: Gye-Young Lee
  • Managing Director, Head-Legal & Compliance Support: Cheon-Geun Jang

Shareholders

  • KIA MOTORS Corp. (17.2%)
  • CHUNG MONG KOO (11.8%)
  • National Pension Service of Korea (8.8%)
  • Hyundai Motor Co., Ltd. (6.8%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.4%)
  • Dimensional Fund Advisors LP (0.9%)
  • Norges Bank Investment Management (0.9%)
  • Hyundai Steel Co. (0.7%)
  • Hermes Investment Management Ltd. (0.5%)

Contact Details

Related Companies

  • Hyundai Steel Pipe India Pvt Ltd.
  • Hyundai Steel India Pvt Ltd.
  • Hyundai Steel TR Otomotiv Celik Urunleri San. ve Tic. AS
  • Hyundai Steel 1st Asset Securitization Specialty Co., Ltd.
  • Hyundai Hysco Co. Ltd. /Cold Rolled Coil Bus/
  • Hyundai Steel USA
  • Green Air Co., Ltd.
  • SPP Youlchon Energy Co. Ltd.
  • ISC Cayman Ltd.
  • Hyundai Hysco Co., Ltd.

Competitors

  • SeAH Holdings Corporation
  • POSCO
  • Daiyang Metal Co., Ltd.
  • Bookook Steel Co., Ltd.
  • Dong Yang Steel Pipe Co., Ltd.
  • Dongkuk Industries Co., Ltd.
  • HISTEEL Co., Ltd.
  • POSCO Chemical Co., Ltd.
Last Updated on 20 Oct, 2020

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