HD Hyundai Heavy Industries: HHI secures second US AIDC engine order; implications and our take

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

10 August 2026

HD Hyundai Heavy Industries

Overweight

329180.KS, 329180 KS

Price (10 Aug 26):W533,000

HHI secures second US AIDC engine order;

implications and our take

Price Target (Dec-27):W710,000

HHI disclosed today a W956B order win from US Corban Energy Group to supply

1.3GW worth of HiMSEN engines for AI data center purposes. While this marks

the second AIDC order win YTD (following the W627B order from Aperion

Energy Group in April), we believe today’s order announcement should serve as

a positive development for the company’s engine capacity addition initiatives as

multiple customer inquiries have been translating into concrete order flows over

the past few months. While we await near-term updates on concrete capacity

expansion plans (current annual 4-stroke engine capacity of ~3GW), we maintain

our positive view on the stock with a robust core business outlook and potential

earnings upside from various option values including navy, AIDC, and FDC.

Korea Shipbuilding

Order summary: The W956B order encompasses HHI supplying 130 units of

9.6MW 4-stroke HiMSEN engines (total c.1.3GW) to Corban Energy Group

for on-site AIDC power generation purposes. Following today’s order

announcement, HHI’s AIDC engine order backlog stands at c.W1.6T,

accounting for ~20% of the EMD’s (engine & machinery division) total

backlog as of 1H26-end. The company guides delivery to be scheduled

between 2028-2030 (26 units in 2028, 52 units each in 2028-2029) with peak

earnings contribution expected throughout 2029-2030.

(852) 2800-8589

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

Implications: Compared to the Aperion Energy order in April (33 units of

21MW HiMSEN engines worth 684MW), we note pricing remains robust,

with estimated contract value per MW at W0.8-0.9B levels, which implies

growing bargaining power for engine manufacturers given power grid

constraints and supply chain bottlenecks in the US. The company also

acknowledges the need for capacity expansion to respond to potential AIDC

engine orders, which we will monitor closely in the coming months.

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