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HD-Hyundai Marine Engine · 071970 · Machinery

HD-Hyundai Marine Engine: Q3 2026 Preliminary Operating Profit Nearly Triples

Why this report

Written after:

Preliminary Q3 2026 results show revenue of ₩211.4B (+93.7% y/y) and operating profit of ₩60.3B (+197.2% y/y). The operating improvement supports the earnings-growth side of the earlier report, but our model estimate fell because the discount rate assumption changed, and the share price has dropped further.

Written Oct 28, 2026 · Data as of Oct 27, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-28 the company released preliminary consolidated results for July to September 2026. Revenue was ₩211.4B, up 65.0% from Q2 2026 (₩128.1B) and up 93.7% from Q3 2025 (₩109.2B). Operating profit was ₩60.3B, up 92.7% from the prior quarter (₩31.3B) and up 197.2% from a year earlier (₩20.3B). That implies an operating margin of about 28.5% for the quarter, against 18.6% in Q3 2025 (our calculation from the filed figures). Pre-tax profit from continuing operations was ₩56.7B (+139.9% y/y) and net profit was ₩46.5B (+105.9% y/y). Net profit was below operating profit this quarter, unlike the trailing twelve months in the previous report. For the nine months to September, revenue was ₩473.0B (+62.3%), operating profit ₩124.1B (+158.5%) and net profit ₩106.5B (+101.0%). The filing notes these are preliminary and may differ from final figures. Two major supply contracts were also filed on 2026-10-22 and 2026-10-26, equal to 6.7% and 7.5% of last year's sales; they are background here.

What it changes for the thesis

The previous report (2026-10-13) described sharply improved operations and a share price moving the other way. This result reinforces the operating side: nine-month operating profit of ₩124.1B already exceeds full-year 2025's ₩75.9B. It also partly answers the earlier question about non-operating profit, since this quarter's net profit was lower than operating profit, so the unusually high trailing net profit may not recur at that level. The filing does not show what drove the earlier gap. The reason for the share price decline remains unexplained: no news headlines are available, and over the last 20 days institutions were net sellers (₩10.5B) and retail net buyers (₩10.4B), while foreign ownership eased to 12.9% from 13.3% sixty days ago.

What it changes for the valuation

The share price closed at ₩35,550 on 2026-10-27, down from ₩40,550 in the previous report, and is down 64.8% over one year, near the 52-week low of ₩34,850. Our model estimate based on the assumptions shown is now ₩35,528 per share in the base case (bear ₩24,754, bull ₩53,035), against ₩40,367 (bear ₩27,159, bull ₩63,048) before. The model still uses trailing data to H1 2026, so it does not yet include this quarter's results. The lower values come from a higher discount rate of 8%, versus 7% previously. The price is again very close to the base case. Current multiples are a P/E of 6.2, P/B of 2.3 and P/S of 2.5, with enterprise value of about ₩902B. EV/EBITDA is not available and the dividend yield is 0.0%. This is a model estimate, not a target.

Closing view

The quarter shows faster growth in revenue and operating profit, which is consistent with the improvement described in the earlier report. The shares have fallen further despite this, and the data does not explain why. The model estimate fell on a changed discount rate rather than weaker results, and it has not yet absorbed the Q3 figures. The numbers are preliminary, and the evidence remains mixed and should be read alongside the full filings.

Model estimate of fair value

Bear
₩24,754
-30%
Base
₩35,528
-0%
Bull
₩53,035
+49%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 8%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 28, 2026Update noteEarningsHD-Hyundai Marine Engine: Q3 2026 Preliminary Operating Profit Nearly Triples
  2. Oct 13, 2026InitiationStart of coverage (300 largest)HD-Hyundai Marine Engine: Strong Earnings Growth, Share Price Down 52.5% Over One Year

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information