[Edaily Reporter Shin Ha-yeon ] On the 29th, Yuanta Securities Korea assessed that the acquisition of Everllence (formerly MAN ES) by global private equity firm Bain Capital serves as an example demonstrating the high value of the ship aftermarket (AM) business HD HYUNDAI MARINE SOLUTION CO., LTD(443060). The firm maintained its “Buy” investment rating and target price of 433,000 won.

Kim Yong-min, an analyst at Yuanta Securities Korea, stated, “Bain’s acquisition of Everllence is proof of the future profit growth potential of the AM business,” adding, “We maintain the company as our top pick in the sector.”

Bain Capital recently agreed to acquire Volkswagen’s 51% stake in Everllence for approximately 7.4 billion euros (about 13 trillion won). Everllence holds an 80% share of the global marine propulsion engine licensing market and plans to expand into the aftermarket services, decarbonized fuel platforms, and power generation engines for data centers following the acquisition.

Yuanta Securities Korea analyzed that the business areas Bain Capital aims to expand align with the sectors where HD HYUNDAI MARINE SOLUTION CO., LTD is focusing its efforts. Researcher Kim explained, “The businesses Bain wants to grow are precisely the ones the company excels at,” adding, “HD HYUNDAI Group holds a 39% and 51% market share in the 2-stroke and 4-stroke DF engine OEM markets, respectively, ranking first in the global marine engine market, whereas Everllence’s OEM market share is estimated to be 0% and less than 10%.”

In particular, he predicted that the power generation engine market, driven by the proliferation of AI data centers, would serve as a growth engine in the medium to long term. He said, “The key to the 4-stroke power generation engine business for AI data centers is timeliness—ensuring production bottlenecks are avoided,” adding, “If Bain’s acquisition of Everllence was based on confidence in the medium- to long-term growth potential of the marine aftermarket and medium-speed engine businesses for data centers, then the premium on the company’s aftermarket business—which generates profits based on the product lifecycle—can be justified.”

He also highlighted as a strength the fact that while Everence primarily operates a licensing business for two-stroke engines, HD HYUNDAI Group holds a high market share for both two-stroke and four-stroke engines in the global engine OEM market. Analyst Kim noted, “We expect sustained future growth for the company based on the production capacity of HD HYUNDAI HEAVY INDUSTRIES’ engine division—which holds the top market share for both two-stroke and four-stroke engines in the global engine OEM market—and the company’s exclusive rights to the related aftermarket business.”

He also emphasized, “Future expansion of HYUNDAI INDUSTRIAL CO.,LTD’s medium-speed engine production, orders for data center engines, FSRU orders throughout the year, and confirmed growth in aftermarket sales for marine engines will be the key drivers of the stock price’s rise.”