HD Hyundai Electric: Strong Profit Growth Meets a Sharp Share Price Pullback

Thesis

The data supports a story of rapid earnings improvement. Revenue grew from ₩1.8T in 2021 to ₩4.1T in 2025, and operating income moved from ₩9.7B to ₩995.3B. Trailing figures to H1 2026 are higher still, at ₩4.3T revenue and ₩1.1T operating income.

The share price has not followed this path recently. It fell 22.1% over one month, 26.1% over three months and 11.8% over one year. The data does not include news headlines, investor flows, foreign ownership or short balance, so it cannot explain the decline. The trailing P/E of 24.7 is lower than the 38.1 at the end of 2025, which suggests the price has fallen faster than earnings have grown.

Business overview

HD Hyundai Electric is listed on KOSPI in the electrical equipment sector. It was founded on 2017-04-03 and listed on 2017-05-10, with 36,047,135 shares outstanding. The CEO is listed as 김영기.

Market capitalization is about ₩21.0T. Revenue growth has been steady in the filed data: 16.5% in 2022, 28.4% in 2023, 22.9% in 2024 and 22.8% in 2025. The data does not break revenue down by product or region.

Financial analysis

These figures come from filed financial statements (DART). Revenue rose from ₩1.81T in 2021 to ₩4.08T in 2025. Operating income rose from ₩9.7B to ₩995.3B, and operating margin went from 0.5% to 24.4%. Net income went from a loss of ₩33.7B in 2021 to ₩732.6B in 2025.

Trailing twelve months to H1 2026: revenue ₩4.34T, operating income ₩1.11T (25.7% margin), net income ₩850.8B (19.6% margin). ROE was 45.3%, up from 41.5% in 2025 and 22.1% in 2022.

Liabilities to equity stood at 143.2%. Cash was ₩988.1B and free cash flow was ₩670.6B. Borrowings data is not available.

Valuation

The current P/E is 24.7, P/B is 9.3 and P/S is 4.8. The dividend yield is 1.4%. Enterprise value is about ₩20.0T. EV/EBITDA is not available.

Against its own history, the P/E of 24.7 compares with 38.1 at the end of 2025. Year-end multiples for earlier years are not available.

Among peers with data, Hyosung Heavy Industries has a P/E of 35.7 and P/B of 8.1, while LS Electric has a P/E of 14.2 and P/B of 2.6. HD Hyundai Electric sits between them on P/E and has the highest P/B of the three. The other peers lack multiples in the data.

Catalysts

• An amended filing on 2026-08-27 covered a major sales or supply contract, though the data gives no details on its size.
• The half-year report filed on 2026-08-14 supplied the latest trailing earnings figures.
• An investor relations event was held on 2026-09-30, which may have provided further company information.
• Filings on 2026-10-01 and 2026-10-02 covered a change in the largest shareholder's holdings and an insider shareholding report.
• An extraordinary shareholders' meeting result and an independent director change were filed on 2026-09-08.

Risks

• The share price is down 22.1% in one month and sits near its 52-week low of ₩538,000, and the data gives no cause.
• Operating margin of 25.7% is much higher than the 6.3% of 2022, so any reversal would weigh heavily on earnings.
• The P/B of 9.3 is high, and the trailing ROE of 45.3% would need to persist to support it.
• Liabilities to equity of 143.2% shows meaningful leverage, and borrowings data is not available.
• Investor flows, foreign ownership, short balance and news are missing, which limits visibility into market positioning.

Closing view

The filed numbers show a large, steady improvement in revenue, margins and returns, with solid free cash flow. The market has moved the other way over recent months, and the data does not say why. The P/E has come down from year-end 2025, but the P/B remains high relative to the peers shown. Missing flow, ownership and news data leave important questions open, so the evidence is mixed and does not point to a conclusion on its own.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationHD Hyundai Electric: Strong Profit Growth Meets a Sharp Share Price Pullback