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JONBUR Research · Update note

HD Hyundai · 267250 · Holding companies

HD Hyundai Q3 Operating Profit Rises 71.5% Year on Year, but Falls 29.2% From Q2

Why this report

Written after:

HD Hyundai reported preliminary Q3 2026 consolidated operating profit of ₩2.9T, up 71.5% year on year but down 29.2% from the prior quarter. The result supports the earnings-improvement picture in our earlier report, though net profit fell much more sharply than operating profit versus Q2.

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

In the preliminary consolidated results for July to September 2026, revenue was ₩22.1T, up 21.2% year on year and down 1.5% from Q2. Operating profit was ₩2.9T, versus ₩1.7T a year earlier (+71.5%) and ₩4.1T in Q2 (-29.2%). Pre-tax profit from continuing operations was ₩2.1T, up 51.0% year on year and down 53.0% from Q2. Net profit was ₩1.4T, up 40.0% year on year and down 56.5% from Q2. Net profit attributable to owners of the parent was ₩556B, up 218.7% year on year and down 58.2% from Q2. For the first nine months, revenue was ₩64.1T (+22.0%), operating profit ₩9.9T (+139.3%), net profit ₩6.6T (+192.1%) and owners' net profit ₩2.7T (+418.2%). The filing says these figures are preliminary and may differ from final ones. News reports attribute the strength to core businesses such as shipbuilding. Background: a cash dividend decision was filed one day earlier, with no earlier dividend in the data to compare against.

What it changes for the thesis

Our earlier report described sharply improving earnings and noted that net income was far below operating income. Q3 supports the first point: nine-month operating profit is already well above the full-year 2025 level of ₩6.1T. The second point also stands. Owners' net profit was only ₩556B against operating profit of ₩2.9T, so much of the profit belongs to minority holders in subsidiaries or is lost between operating and net lines. The filing does not explain the Q3 drop from Q2 in pre-tax and net profit. The earlier report said the data could not explain the share price fall. The results do not explain it either, since profit rose year on year.

What it changes for the valuation

The model estimate is based on the assumptions shown and is not a price target. It gives ₩82,512 (bear), ₩123,767 (base) and ₩173,274 (bull) per share, using a net asset value method and a 40% rate, with data up to H1 2026, so it does not yet include Q3. The previous report had no estimate, so there is no earlier range to compare. The share price closed at ₩136,200 on 2026-10-27, above the base value and within the bear-to-bull range. This is 33.7% lower over one month and 59.1% below the 52-week high of ₩333,000. Trailing P/E is now 3.9 (4.9 earlier), P/B 0.9 (1.1) and dividend yield 2.9% (2.3%), reflecting the lower price. These multiples do not yet include Q3 results.

Closing view

The quarter shows strong year-on-year growth in revenue and operating profit, consistent with our earlier view of improving earnings. The sequential decline in operating and net profit and the small share going to the parent argue for caution. The figures are preliminary, the model has not yet absorbed them, and the data does not explain the share price move. The evidence remains mixed.

Model estimate of fair value

Bear
₩82,512
-39%
Base
₩123,767
-9%
Bull
₩173,274
+27%

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

Base case of the sum-of-the-parts (net asset value) model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 40%). 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 Q3 Operating Profit Rises 71.5% Year on Year, but Falls 29.2% From Q2
  2. Oct 13, 2026InitiationHD Hyundai: Sharp 1-Month Share Price Drop as Trailing Earnings Climb

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