Hyosung Heavy Industries: Solid orders; see upside to 2H26 profits

研报英文原文证据摘录

Hyosung Heavy Industries: Solid orders; see upside to 2H26 profits

Global Research

31 July 2026ab

Hyosung Heavy Industries Equities

KoreaSolid orders; see upside to 2H26 profits

Electric Components & Equipment

12-month rating Buy *

Reiterate Buy

Q2 OP was in line with lowered buy-side expectations, in our view. Management revised 12m price target Won3,800,000

up revenue and margin guidance, and taking into account management's usual Prior : Won4,400,000

prudence on guidance, we now see 14% upside to 2H26E OP versus pre-results

Price (31 Jul 2026) Won2,417,000

consensus. New order bookings in Q2 was solid, and upgraded new order guidance

gives us reassurance on end demand. We see good opportunity to accumulate on the RIC: 298040.KS BBG: 298040 KS

stock after the recent correction, as fundamentals on grid equipment remain unchanged

Trading data and key metrics

and we see earnings upgrades potentially extending to 2027E and beyond.

52-wk range Won4,601,000-1,115,000

Key takeaways from Q226 results Market cap. Won22,526b/US$15.7b

Shares o/s 9.32m (ORD)

Q2 OP was Won264bn (+61% YoY), an 8% miss versus consensus which was well

Free float 41%

flagged, in our view. Hyosung explained the miss was due to delay in Middle East-bound

shipments (Won60bn revenue headwind; to be resolved in 2H26) as well as Avg. daily volume ('000) 59.4

US shipments held in inventory (net Won40bn profit headwind; to be booked in Q3). Avg. daily value (m) Won200,124.9

Won3.3trn new orders were booked in Q2, down 20% QoQ on high base but still up Common s/h equity (12/26E) Won3135b

51% YoY. Management now guides Won12trn new orders for 2026 (versus Won8.6trn P/BV (12/26E) 7.2x

prior) implying new orders to grow 32% YoY in 2H26, as they see strong demand on Net debt to EBITDA (12/26E) 0.0x