[Featured Stock] Hyundai Hims with 'Record High Performance', Up 4.53%

Record-High Earnings Driven by Shipbuilding Boom
Operating Profit Up 49% Year-on-Year in 2023

Shares of Hyundai Hims, a ship block manufacturing company that achieved record-high performance last year, are on the rise.

As of 2:01 PM on the 11th, Hyundai Hims was trading at 19,370 KRW, up 840 KRW (4.53%) from the previous trading day. With Hyundai Hims' lock-up period having expired on the 26th of last month, reports emerged that private equity firm J&Private Equity and HD Hyundai are negotiating over the management rights sale, causing the stock price to surge to as high as 21,200 KRW during the morning session.

On the same day, Hyundai Hims announced that its consolidated sales for last year increased by 18.0% year-on-year to 223.2 billion KRW, operating profit rose by 49.0% to 21.5 billion KRW, and net profit increased by 63.7% to 16.6 billion KRW. In the fourth quarter of last year, sales reached 56.4 billion KRW and operating profit was 4.6 billion KRW, continuing the positive trend.

The strong performance is attributed to the combined effect of increased LNG (liquefied natural gas) ship orders in the global shipbuilding industry and demand for replacing aging vessels. A Hyundai Hims representative said, "Performance improved as orders from major clients expanded through proactive investment in production facilities and process stabilization," adding, "Sales and operating profit grew significantly due to the improvement in the shipbuilding industry outlook."

Future benefits are also expected from the U.S. port infrastructure modernization policy. As the U.S. pursues a policy excluding Chinese products, Hyundai Hims plans to actively participate in related projects. The U.S. temporary vessel allowance policy until 2029 is also expected to be a positive factor for Korean shipbuilders.

A Hyundai Hims representative stated, "Along with the shipbuilding boom, the U.S. port infrastructure modernization policy will serve as a stepping stone for a new leap forward," and added, "We will accelerate diversification of our business portfolio by expanding the port crane business."