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A329180: US Naval Cooperation And Service Contracts Will Drive Future Upside

US-Korea Shipbuilding Collaboration And Shareholder Decisions Will Shape Future Performance

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A329180
AnalystConsensusTarget
Not Invested
Published 03 Aug 2025

Update shared on 12 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
137.8%
7D
7.3%

Analysts have modestly increased their price target for HD Hyundai Heavy Industries Ltd., citing slightly lower discount rate assumptions and stable long term revenue growth, profit margin, and valuation expectations that together support a fair value approaching ₩693,590.91 per share.

What's in the News

  • Signed a memorandum of agreement with HII at the APEC 2025 forum to deepen U.S.-Korea shipbuilding cooperation and expand strategic engagement across multiple naval programs (Key Developments).
  • Agreed with HII to jointly pursue the U.S. Navy next generation logistics ship concept design contract, combining HII complex shipbuilding capabilities with HD Hyundai Heavy Industries Ltd proven auxiliary ship designs (Key Developments).
  • Expanded collaboration on engineering, R&D and technology best practices, including AI and machine learning, robotics and automation, to improve efficiency and shipbuilding innovation (Key Developments).
  • Reinforced U.S. Indo Pacific naval support through lifecycle service work such as the overhaul of the 41,000 ton fleet dry cargo and ammunition ship USNS Alan Shepard, strengthening operational ties with the United States (Key Developments).

Valuation Changes

  • Fair Value Estimate is unchanged at approximately ₩693,590.91 per share, indicating no revision to the model’s central valuation outcome.
  • The discount rate has fallen slightly from about 8.39 percent to 8.38 percent, reflecting a marginally lower perceived risk or cost of capital.
  • Revenue growth is effectively unchanged at around 8.28 percent annually, signaling stable long term topline expectations.
  • Net profit margin is essentially flat at roughly 13.66 percent, indicating no meaningful shift in long run profitability assumptions.
  • The future P/E has edged down slightly from about 27.34 times to 27.33 times, suggesting a marginally lower implied valuation multiple on projected earnings.

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Disclaimer

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