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HD Hyundai Heavy Industries · 329180 · Shipbuilding

HD Hyundai Heavy Industries: Q3 2026 Preliminary Results Show Operating Profit Up 59.2% Year on Year

Why this report

Written after:

Preliminary Q3 2026 results show operating profit of ₩891.7B, up 59.2% from a year earlier, while net profit fell 19.4%. The operating recovery in the previous report continues, but the quarter was softer than Q2, and the model has not yet been updated for these figures.

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

The company filed preliminary results for July to September 2026. Revenue was ₩5.73T, up 29.8% from ₩4.42T a year earlier and down 9.2% from ₩6.31T in Q2.

Operating profit was ₩891.7B, up 59.2% from ₩560.1B a year earlier and down 13.9% from ₩1.04T in Q2. Pre-tax profit from continuing operations was ₩468.2B, down 18.3% year on year and down 59.3% from Q2. Net profit was ₩348.3B, down 19.4% year on year and down 57.4% from Q2.

For the first nine months, revenue was ₩17.95T (up 44.9%), operating profit was ₩2.83T (up 93.0%) and net profit was ₩1.93T (up 108.9%). The filing notes that the figures are preliminary and may differ from final results. It does not explain why pre-tax and net profit fell while operating profit rose.

Smaller recent events include a sales or supply contract filed on 20 October, equal to 2.7% of last year's sales, and an earlier preliminary earnings filing on 19 October with no comparable figures. Recent news reports also mention a wage agreement reached on 27 October.

What it changes for the thesis

The previous report described an earnings turnaround, with trailing operating margin of 14.1% and an unexplained share price fall. The nine-month operating profit of ₩2.83T, up 93.0%, supports the turnaround part of that thesis.

The quarter also confirms the nuance noted before: revenue and operating profit fell from Q2, and net profit fell both year on year and quarter on quarter. Operating growth is not carrying through to net profit this quarter, and the filing gives no reason. The previous report's figures for operating profit were slightly different from the filing, which shows ₩891.7B, so the filing figures here should be treated as the reference.

The share price weakness remains unexplained by the data. The last close was ₩291,500, near the 52-week low of ₩285,500, down 33.9% over one month. Foreign ownership was 14.1% versus 13.9% sixty days earlier, and the short balance was 0.9%.

What it changes for the valuation

The model still gives the same estimate as the previous report, since it uses trailing figures through H1 2026 and does not yet include Q3. Using a discounted cash flow at an 8.3% rate, it gives ₩94,356 (bear), ₩194,703 (base) and ₩359,620 (bull) per share. This is a model estimate based on the assumptions shown, not a price target. The range is unchanged from the previous report.

The share price of ₩291,500 sits between the base and bull cases. The range is very wide, showing how sensitive the result is to assumptions.

Current multiples are a P/E of 12.2, P/B of 2.9, P/S of 1.4 and a dividend yield of 1.9%. EV/EBITDA is not available. Peers include Hanwha Ocean at a P/E of 7.8 and P/B of 2.2, Samsung Heavy Industries at 25.5 and 3.0, and Daehan Shipbuilding at 4.7 and 1.2. These multiples do not yet reflect the Q3 figures.

Closing view

The Q3 preliminary figures confirm strong year-on-year operating growth and a nine-month operating profit nearly double last year's. The quarter was softer than Q2, and net profit declined from a year earlier for reasons the filing does not give. The model estimate is unchanged and does not yet include this quarter, so the gap between the base value and the share price should be read with caution. The evidence is mixed: operating momentum is clear, while the drop in net profit and the share price weakness remain open questions until final results and more detail are available.

Model estimate of fair value

Bear
₩94,356
-67%
Base
₩194,703
-32%
Bull
₩359,620
+26%

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 8.3%). 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 Heavy Industries: Q3 2026 Preliminary Results Show Operating Profit Up 59.2% Year on Year
  2. Oct 28, 2026Update noteEarningsHD Hyundai Heavy Industries: Q3 2026 Preliminary Operating Profit Up 61.3% Year on Year
  3. Oct 13, 2026InitiationHD Hyundai Heavy Industries: Profit Recovery Continues as Shares Fall Sharply From 52-Week High

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