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Non-Energy Minerals

Hyundai Steel Co.

  • 52,100.00 KRW
  • -2,200.00
  • -4.05%
  • South Korea
    Apr 19, 2018
  • Ticker
    KRX(004020)
  • Prev. close
    54,300
  • Market cap (KRW)
    7,246.10B
  • Market cap (USD)
    6,826.28M
  • Shares
    133.44M

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 2017 KRWUSD
Revenue19,165.96B16,953.37M
Gross Profit2,425.88B2,145.82M
Operating income1,347.70B1,192.12M
Income before tax1,081.28B956.45M
Net income716,090.43M633.42M
EBITDA2,851.96B2,522.72M
Diluted EPS5,4554.82
Dividends Per Share7500.66
Total Assets33,373.82B31,174.46M
Total liabilities16,338.30B15,261.59M
Total equity16,715.54B15,613.97M
Operating cash flow1,719.76B1,521.23M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 13,532.75B 16,762.35B 16,132.51B 16,691.51B 19,165.96B
Gross Profit 1,343.77B 2,308.73B 2,423.94B 2,453.07B 2,425.88B
Operating income 762,603.05M 1,491.13B 1,464.14B 1,445.41B 1,347.70B
Income before tax 782,368.95M 1,098.75B 926,727.41M 1,173.96B 1,081.28B
Net income 691,911.55M 764,761.09M 733,620.69M 850,155.15M 716,090.43M
EBITDA 1,477.08B 2,679.71B 2,737.68B 2,832.81B 2,851.96B
Diluted EPS 8,193 6,600 2,955 6,492 5,455
Dividends Per Share 500 750 750 750 750
Total Assets 29,520.27B 28,933.79B 31,936.43B 32,540.83B 33,373.82B
Total liabilities 16,155.59B 15,119.01B 16,416.43B 16,056.04B 16,338.30B
Total equity 13,189.69B 13,623.90B 15,242.02B 16,176.24B 16,715.54B
Operating cash flow 643,956.53M 1,936.55B 3,065.57B 2,916.56B 1,719.76B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 12,361.36M 15,923.83M 14,253.81M 14,386.88M 16,953.37M
Gross Profit 1,227.45M 2,193.24M 2,141.66M 2,114.37M 2,145.82M
Operating income 696.59M 1,416.54M 1,293.63M 1,245.84M 1,192.12M
Income before tax 714.64M 1,043.78M 818.80M 1,011.87M 956.45M
Net income 632.01M 726.50M 648.18M 732.77M 633.42M
EBITDA 1,349.22M 2,545.66M 2,418.87M 2,441.68M 2,522.72M
Diluted EPS 7.48 6.26 2.61 5.59 4.82
Dividends Per Share 0.45 0.71 0.66 0.64 0.66
Total Assets 27,972.02M 26,323.79M 27,236.73M 26,942.23M 31,174.46M
Total liabilities 15,308.27M 13,755.18M 14,000.62M 13,293.62M 15,261.59M
Total equity 12,497.93M 12,394.94M 12,999.03M 13,393.14M 15,613.97M
Operating cash flow 588.21M 1,839.68M 2,708.57M 2,513.87M 1,521.23M

Valuation Measures

Dec 2017
PER10.74
ROA2.17%
ROE4.35%
Operating margin7.03%
Profit margin3.73%

Key executives

  • President, Co-Chief Executive Officer & Director: Hak-Seo Kang
  • Vice Chairman & Co-Chief Executive Officer: Yoo-Cheol Woo
  • Director, Vice President & Head-Finance: Choong-Shik Song
  • Managing Director & Head-Information Technology: Min-Su Seo
  • Managing Director & Head-Process Technology: Ju-Tae Choi

Shareholders

  • Kia Motors Corp. (17.2%)
  • CHUNG MONG KOO (11.8%)
  • National Pension Service of Korea (7.9%)
  • Hyundai Motor Co., Ltd. (6.8%)
  • NH Investment & Securities Co. Ltd. (Private Equity) (5.6%)
  • Hermes Investment Management Ltd. (1.7%)
  • Hyundai Steel Co. (1.6%)
  • Dimensional Fund Advisors LP (1.5%)
  • BlackRock Fund Advisors (1.4%)
  • The Vanguard Group, Inc. (1.3%)

Contact Details

Related Companies

  • 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
  • SPP Youlchon Energy Co. Ltd.
  • ISC Cayman Ltd.
  • Hyundai Hysco Co., Ltd.

Competitors

  • Metalurgica Gerdau SA Pfd
  • Severstal PAO
  • POSCO
  • SeAH Holdings Corporation
  • Dongkuk Industries Co., Ltd.
Last Updated on 19 Apr, 2018

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