Asia300

Hyundai Steel Co.

South Korea

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Sep 22, 2017
Prev close: 52,000
Sep 22, 2017
Market cap:
Market cap(USD):
6,939.18B
6,105.75M
Shares: 133.44M

Currency in KRW

Company profile

Market(Ticker): KRX(004020)
Sector:
Industry:
Non-Energy Minerals
Steel
Full time employees: --

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.

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.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 16,691.51B
Gross profit 2,452.71B
Operating income 1,445.04B
Income before tax 1,120.21B
Net income 818,763.27M
EBITDA 2,832.81B
Diluted EPS 6,253
Dividends per share 750
Total assets 32,389.27B
Total liabilities 16,025.63B
Total equity 16,070.41B
Operating cash flow 2,916.56B

Currency in KRW

Revenue 14,386.88M
Gross profit 2,114.06M
Operating income 1,245.52M
Income before tax 965.54M
Net income 705.71M
EBITDA 2,441.68M
Diluted EPS 5.38
Dividends per share 0.64
Total assets 26,816.74M
Total liabilities 13,268.44M
Total equity 13,305.52M
Operating cash flow 2,513.87M

Currency in USD

Valuation measures

Dec 2016

PER 9.11
ROA 2.54%
ROE 5.22%
Operating margin 8.65%
Profit margin 4.90%

Key executive

  • President & Director: Hak-Seo Kang
  • Director, Vice President & Head-Finance: Choong-Shik Song
  • Executive Board Member & Head-Process Technology: Ju-Tae Choi
  • Executive Board Member & Head-Technology: Won-Sin Kim
  • Managing Director & Head-Information Technology: Min-Su Seo

Share holders

  • Kia Motors Corp.(17.2%)
  • CHUNG MONG KOO(11.8%)
  • National Pension Service of Korea(6.9%)
  • Hyundai Motor Co., Ltd.(6.8%)
  • NH Investment & Securities Co. Ltd. (Private Equity)(5.5%)
  • Dimensional Fund Advisors LP(1.5%)
  • The Vanguard Group, Inc.(1.3%)
  • BlackRock Fund Advisors(1.2%)
  • Hermes Investment Management Ltd.(1.2%)
  • Hyundai Steel Co.(0.7%)

Address

  • Website: http://www.hyundai-steel.com
  • Address: 63 Jungbong-daero, Dong-gu, Inchon, 22525, South Korea
  • Phone: +82.32.760.2114

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