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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 2020 KRWUSD
Revenue18,023.39B15,275.51M
Gross Profit1,094.10B927.29M
Operating income69,000.65M58.48M
Income before tax-522,799.18M-443.09M
Net income-430,013.44M-364.45M
EBITDA1,648.19B1,396.90M
Diluted EPS-3,271.78-2.77
Dividends Per Share5000.42
Total Assets34,845.04B32,076.80M
Total liabilities18,152.00B16,709.93M
Total equity16,345.44B15,046.89M
Operating cash flow2,008.37B1,702.17M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 16,691.51B 19,165.96B 20,780.38B 20,512.59B 18,023.39B
Gross Profit 2,453.07B 2,425.88B 2,064.56B 1,393.02B 1,094.10B
Operating income 1,445.41B 1,347.70B 1,026.03B 331,316.01M 69,000.65M
Income before tax 1,173.96B 1,081.28B 569,810.30M 44,083.29M -522,799.18M
Net income 850,155.15M 716,090.43M 398,674.37M 17,104.66M -430,013.44M
EBITDA 2,832.81B 2,851.96B 2,616.74B 1,879.08B 1,648.19B
Diluted EPS 6,492 5,455 3,037.04 130.30 -3,271.78
Dividends Per Share 750 750 750 750 500
Total Assets 32,540.83B 33,373.82B 33,304.91B 34,366.33B 34,845.04B
Total liabilities 16,056.04B 16,338.30B 16,281.78B 17,132.59B 18,152.00B
Total equity 16,176.24B 16,715.54B 16,696.01B 16,898.37B 16,345.44B
Operating cash flow 2,916.56B 1,719.76B 1,575.27B 628,329.18M 2,008.37B
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 14,386.88M 16,953.37M 18,882.36M 17,589.49M 15,275.51M
Gross Profit 2,114.37M 2,145.82M 1,875.99M 1,194.51M 927.29M
Operating income 1,245.84M 1,192.12M 932.31M 284.10M 58.48M
Income before tax 1,011.87M 956.45M 517.76M 37.80M -443.09M
Net income 732.77M 633.42M 362.26M 14.66M -364.45M
EBITDA 2,441.68M 2,522.72M 2,377.73M 1,611.31M 1,396.90M
Diluted EPS 5.59 4.82 2.75 0.11 -2.77
Dividends Per Share 0.64 0.66 0.68 0.64 0.42
Total Assets 26,942.23M 31,174.46M 29,848.46M 29,717.09M 32,076.80M
Total liabilities 13,293.62M 15,261.59M 14,592.02M 14,814.81M 16,709.93M
Total equity 13,393.14M 15,613.97M 14,963.26M 14,612.28M 15,046.89M
Operating cash flow 2,513.87M 1,521.23M 1,431.39M 538.79M 1,702.17M

Valuation Measures

Dec 2020
PER--
ROA-1.24%
ROE-2.58%
Operating margin0.38%
Profit margin-2.38%

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 Corp. (17.2%)
  • CHUNG MONG KOO (11.8%)
  • National Pension Service of Korea (7.5%)
  • Hyundai Motor Co., Ltd. (6.8%)
  • BlackRock Fund Advisors (1.5%)
  • Hyundai Steel Co. (1.4%)
  • The Vanguard Group, Inc. (1.4%)
  • Hermes Investment Management Ltd. (0.9%)
  • Samsung Asset Management Co., Ltd. (0.6%)
  • Dimensional Fund Advisors LP (0.6%)

Contact Details

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Competitors

  • SeAH Holdings Corporation
  • POSCO
  • Daiyang Metal Co., Ltd.
  • MYOUNG SHIN INDUSTRIAL 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 3 Dec, 2021

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