HJ Shipbuilding & ConstructionHJ중공업

HJ Shipbuilding's share price has fallen sharply over the past year despite a return to profit on a trailing basis and a first U.S. Navy maintenance job.

HJ Shipbuilding & Construction runs shipbuilding, ship repair and construction businesses. On a trailing twelve-month basis to H1 2026 it reported revenue of ₩2.35T, operating income of ₩146B and net income of ₩141B, after several loss-making years. The share price is down 57.7% over one year and sits near its 52-week low of ₩11,970, with the close at ₩11,980.

What stands out

• Trailing operating margin is 6.2% and net margin 6.0%, compared with an operating margin of 3.4% in 2025 and losses in 2021 to 2023.
• Free cash flow is negative at ₩-194B on the trailing basis, and borrowings of ₩475B exceed cash of ₩250B; liabilities are 251% of equity.
• Valuation shows a P/E of 7.7 and P/B of 1.4 with no dividend yield, while the data does not include a fair value model or analyst targets.
• On 15 October 2026 several outlets reported the company completed its first maintenance, repair and overhaul job on a U.S. Navy vessel, and the Export-Import Bank of Korea was reported to be supporting a container ship export.
• Recent filings include many amended major sales or supply contract notices, plus a lawsuit filing and a major management matter, though the data does not describe their content.
• Foreign ownership rose from 5.3% to 6.0% over about 60 days, while retail and institutional investors were net sellers over the last 20 days.

What to watch

• Whether the U.S. Navy maintenance work leads to follow-on orders, as the company has said it hopes for.
• Contents and outcome of the lawsuit and the management matter named in October filings, which the data does not detail.
• Cash generation and debt levels in upcoming results, given negative trailing free cash flow and high leverage.