[Special Stock] HD Hyundai Construction Equipment, Institutional Investors Net Buy for 14 Consecutive Days... Industry Outlook Upbeat

Early session strong rise at 8% range
Institutions net buyers for 14 consecutive trading days since January 16
2024 Industry and Earnings Outlook 'Clear'

HD Hyundai Construction Equipment is showing strong performance. This is interpreted as reflecting expectations for improved earnings with the recovery of the construction market in the future.

As of 10:31 AM on the 5th, HD Hyundai Construction Equipment is trading at 57,400 KRW, up 8.92% (4,700 KRW) from the previous close. The stock opened at 54,500 KRW, up 3.42% from the previous trading day, and has been fluctuating around the 57,000 KRW level since early trading. The 52-week high for HD Hyundai Construction Equipment was 93,000 KRW, recorded on July 25, 2023.

HD Hyundai Construction Equipment has been a stock with 14 consecutive trading days of net buying by institutional investors from the 16th of last month to the 2nd. During this period, institutions purchased 30.8 billion KRW worth of shares. On the other hand, foreign investors sold a net 18.2 billion KRW, and individual investors sold a net 11.9 billion KRW.

HD Hyundai Construction Equipment was spun off from Hyundai Heavy Industries in 2017. The company is promoting sales expansion in emerging and core markets through localization models and strategic alliances in the construction equipment industry. Along with Doosan Bobcat and HD Hyundai Infracore, it is considered one of the 'Big 3' domestic construction equipment companies. In 2023, its sales reached 3.825 trillion KRW, with an operating profit of 257.2 billion KRW, representing increases of 8.8% and 50.8%, respectively, compared to 2022.

This year, the construction equipment market is evaluated to depend on ▲ a rebound in U.S. housing construction ▲ expanding demand in emerging markets such as the Middle East and South America ▲ and economic recovery in China and Europe. Han-gyeol Lee, a researcher at Kiwoom Securities, said, "The construction equipment markets in North America and emerging resource countries, which led earnings growth in 2023, are expected to remain solid this year," adding, "The turnaround of the domestic and Chinese markets, which showed sluggish performance since 2022, will be a variable this year."