HD Hyundai Heavy Industries: 2Q26 OP strong and in-line; reiterate OW on robust core business and several option values

研报英文原文证据摘录

HD Hyundai Heavy Industries: 2Q26 OP strong and in-line; reiterate OW on robust core business and several option values

J P M O R G A N Asia Pacific Equity Research

29 July 2026

HD Hyundai Heavy Industries Overweight

329180.KS, 329180 KS

2Q26 OP strong and in-line; reiterate OW on robust Price (29 Jul 26):W434,500

core business and several option values ▼Price Target (Dec-27):W710,000 Prior (Dec-26):W870,000

HHI’s 2Q26 OP was largely in-line with our estimates at W1T, with OPM at 16.4%

(vs. JPMe 16.3%). Despite a slight miss at the offshore/plant business, Korea Shipbuilding

shipbuilding & engine OPM came in at a strong 17% & 25% driven by continued Simon Han AC

mix improvement from profitable order years and growth in DF deliveries, which (82-2) 758-5711

we expect to sustain throughout the upcoming quarters. On the engine business, no simon.x.han@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

detailed capacity expansion plans were announced, although we view the Branch

company’s comments as positive given: 1) the company confirms the need for Jeongsuk Woo

expansion, while also urges for a foster related value chain for smooth execution/ (82-2) 758 5703

delivery. On the navy side, the company highlighted Peru submarine and jeongsuk.woo@jpmorgan.com

Philippine navy reorders as the most imminent orders in the pipeline, while J.P.BranchMorgan Securities (Far East) Limited, Seoul

maintaining a constructive outlook on various order inquiries across Europe,

Karen Li, CFA

Southeast Asia and LATAM. While we cut our PT to W710K on lower P/orderbook (852) 2800-8589

target multiple to 0.89x (from a previous 1.1x) mainly due to lower investor risk karen.yy.li@jpmorgan.com

appetite, we remain OW with a robust core business outlook and potential earnings J.P.