Hyosung Heavy Industries: Strong Profit Growth, Premium Multiples and a Sharp Recent Share Price Pullback

Thesis

The data supports a clear improvement in earnings quality. Revenue grew every year shown, and operating margin moved from 3.9% in 2021 to 12.5% in 2025 and 14.0% on a trailing basis. ROE reached 26.0%, and free cash flow was ₩524.2B.

The share price has already moved a lot. It is up 49.7% over one year but down 15.9% over three months and 21.4% over one month. The close is well below the 52-week high of ₩4,742,000 and above the low of ₩1,428,000.

The data does not explain the recent decline. No news headlines are provided, and investor flow, foreign ownership and short balance data are not available. The multiples are high on both earnings and book value, so the valuation leaves less room for any slowdown in the numbers.

Business overview

Hyosung Heavy Industries is listed on KOSPI in the electrical equipment sector. It was founded on 2018-06-04 and listed on 2018-07-13, with 9,324,548 listed shares. Market capitalisation is about ₩20.9T and enterprise value is about ₩20.8T. The CEO is listed as 우태희.

Annual revenue rose from ₩3.1T in 2021 to ₩6.0T in 2025. Recent filings include several major sales or supply contract disclosures and amendments in September 2026. The data does not give contract sizes, customers or product details.

Financial analysis

These figures come from filed financial statements (DART). Revenue was ₩3.1T in 2021, ₩3.5T in 2022, ₩4.3T in 2023, ₩4.9T in 2024 and ₩6.0T in 2025. Growth was 13.4% in 2022, 22.5% in 2023, 13.8% in 2024 and 21.9% in 2025.

Operating income rose from ₩120.1B in 2021 to ₩747.0B in 2025. Net income rose from ₩76.5B to ₩519.9B over the same period, with a dip to ₩29.1B in 2022. Trailing figures to H1 2026 are revenue of ₩6.4T, operating income of ₩896.9B and net income of ₩585.1B. Operating margin is 14.0% and net margin is 9.1%.

ROE was 24.4% in 2025 and 26.0% on a trailing basis, up from 3.1% in 2022. Liabilities to equity is 213.5%. Cash is ₩172.6B against borrowings of ₩73.8B, and free cash flow is ₩524.2B.

Valuation

The current P/E is 35.7x, P/B is 8.1x and P/S is 3.3x. The dividend yield is 0.3%. EV/EBITDA is not available. At the end of 2025 the P/E was 31.9x and the P/B was 7.1x, so both multiples are higher now. Year-end multiples for earlier years are not available.

Among peers with data, HD Hyundai Electric has a P/E of 24.7x and P/B of 9.3x at a similar market cap of about ₩21.0T. LS Electric has a P/E of 14.2x and P/B of 2.6x at ₩5.5T. Sanil Electric, Taihan Cable & Solution and Gaon Cable have no multiples in the data. On earnings, the company is above the two peers with data. On book value, it sits between them.

Catalysts

• Several major sales or supply contract filings and amendments between 2026-09-14 and 2026-09-30 may point to order activity, though the data gives no amounts.
• A 2026-09-18 filing responding to a rumour or news report shows the company addressed market speculation, but its content is not in the data.
• Filings on 2026-09-29 covering a change in the largest shareholder's holdings, an insider shareholding report and a 5%+ holding report show ownership changes worth watching.
• The 2026-08-13 half-year report and the 2026-08-27 IR event are the latest sources of financial and management information.
• The next financial statements will show whether margins stay near the trailing 14.0%.

Risks

• The P/E of 35.7x and P/B of 8.1x are above the company's own year-end 2025 levels, and the P/E is above the two peers with data.
• The share price fell 21.4% in one month and 15.9% in three months, which shows high volatility.
• Liabilities are 213.5% of equity, which is a substantial level of leverage even though borrowings are modest against cash.
• Investor flows, foreign ownership, short balance and news data are unavailable, so the reasons for the recent decline cannot be confirmed.
• Earnings were uneven in the past, with net income of ₩29.1B in 2022, so the current margin level may not be permanent.

Closing view

The filed numbers show a sustained rise in revenue, margins, returns and cash generation, and a balance sheet with low borrowings relative to cash. Against that, the shares trade at premium multiples, have fallen sharply in recent weeks, and the data lacks flow, short-interest and news information that could explain the move. The evidence supports a picture of strong fundamentals priced at demanding levels, but it cannot show how either will develop from here.

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, 2026InitiationHyosung Heavy Industries: Strong Profit Growth, Premium Multiples and a Sharp Recent Share Price Pullback