Asia300

Hyundai Steel Co.

South Korea

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Feb 22, 2018
Prev close: 52,300
Feb 22, 2018
Market cap:
Market cap(USD):
6,979.21B
6,436.90M
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 2017

  • Local currency
  • US Dollar
Revenue 19,165.96B
Gross profit 2,431.96B
Operating income 1,371.29B
Income before tax 1,086.71B
Net income 726,368M
EBITDA --
Diluted EPS --
Dividends per share 750
Total assets 33,374B
Total liabilities 16,338B
Total equity 17,036B
Operating cash flow --

Currency in KRW

Revenue 16,953.37M
Gross profit 2,151.20M
Operating income 1,212.99M
Income before tax 961.25M
Net income 642.51M
EBITDA --
Diluted EPS --
Dividends per share 0.66
Total assets 31,174.62M
Total liabilities 15,261.31M
Total equity 15,913.31M
Operating cash flow --

Currency in USD

Valuation measures

Dec 2017

PER 10.76
ROA 2.20%
ROE 4.38%
Operating margin 7.15%
Profit margin 3.78%

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(7.9%)
  • Hyundai Motor Co., Ltd.(6.8%)
  • NH Investment & Securities Co. Ltd. (Private Equity)(5.5%)
  • Hermes Investment Management Ltd.(1.6%)
  • Dimensional Fund Advisors LP(1.5%)
  • BlackRock Fund Advisors(1.4%)
  • The Vanguard Group, Inc.(1.3%)
  • 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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