The stock price of Hyundai Himsen is surging. Investor sentiment toward the shipbuilding sector appears to be improving following news of the launch of an integrated corporation through the merger of HD Hyundai Heavy Industries and HD Hyundai Mipo.
As of 11:14 a.m. on August 28, Hyundai Himsen was trading at 28,200 won, up 21.55% from the previous trading day.
Hyundai Himsen, a company specializing in ship blocks, recorded consolidated sales of 120.7 billion won and operating profit of 15.5 billion won in the first half of this year. This represents increases of 7.1% and 21.2%, respectively, compared to the same period last year. The company has maintained solid profit growth, driven by the expansion of high value-added shipbuilding in the domestic shipbuilding industry.
A company representative stated, "The expansion of high value-added ship orders in the domestic shipbuilding industry has been the key driver of our improved performance," adding, "Our strength lies in securing stable order volumes based on close cooperative relationships with major clients such as HD Hyundai Heavy Industries and HD Hyundai Samho."
The company also expects the 'MASGA' project to lead to expanded business opportunities. The project is valued at a total of 150 billion dollars, and more than 50 LNG carriers are expected to be ordered over the next 10 years, so the company anticipates additional benefits. Demand for replacing port cranes both domestically and internationally is also emerging as a new growth driver, in line with the United States’ policy of reducing dependence on China. Last month, Hyundai Himsen signed a contract to supply major structures for the automated terminal port crane (DTQC) project at Gwangyang Port, which was ordered by HD Hyundai Samho. In the domestic crane market, a total of 186 cranes worth 2.2 trillion won are scheduled to be ordered by 2031, and the company expects to win additional orders and supply contracts in the future.
Kwak Minjeong, a researcher at Hyundai Motor Securities, commented, "HD Hyundai is strengthening cooperation with the United States on port cranes, which are sensitive security items," adding, "HD Hyundai Samho is expected to benefit from orders related to the demand for replacing Chinese-made cranes installed at 23 U.S. ports-209 units in total-where Shanghai Zhenhua Heavy Industries (ZPMC) has effectively monopolized the market, as well as from the broader trend of reducing reliance on China."
She continued, "It is possible for China to access information on U.S. and allied military movements and maritime logistics data through port cranes," and added, "Given that civilian infrastructure has been utilized for military operations in recent conflicts such as the Russia-Ukraine war and the Israel-Iran conflict, demand for replacing port cranes in the United States is expected to increase."
Hyundai Himsen has secured manufacturing technology for cargo holds capable of liquefying hydrogen at -253 degrees Celsius, which is the most technically critical part of liquefied hydrogen transport vessels, with a view to building such ships for HD Korea Shipbuilding & Offshore Engineering's shipbuilding affiliates. The company also participates in the defense industry, including warships, and has all the necessary technology and manufacturing capabilities for block production, positioning itself as a comprehensive block manufacturer.
Jung Dongho, a researcher at Mirae Asset Securities, analyzed, "The core of the HD Hyundai Heavy Industries-HD Hyundai Mipo integration strategy is the defense business," and added, "The plan is to maximize sales by combining HD Hyundai Heavy Industries' warship capabilities with HD Hyundai Mipo's production capacity." He further stated, "The defense revenue guidance for 2030-2035 has been roughly doubled from the previous 3-5 trillion won to 7-10 trillion won," and added, "With the synergy from the HD Hyundai Mipo merger, an additional 4 trillion won in overseas warship sales (including the United States) and 1 trillion won in special-purpose vessel sales have been added."
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