[E-Daily Reporter Shin Ha-yeon ] On the 10th, SKSecurities maintained its “Buy” rating and target price of 340,000 won for HD HYUNDAI MARINE SOLUTION CO., LTD(443060), noting that while second-quarter earnings are expected to fall short of market expectations, data center (DC) engine maintenance and floating data center (FDC) retrofitting projects are emerging as new growth drivers.

Han Seung-han, an analyst at SKSecurities, stated, “The key factor driving the company’s future stock price growth is not short-term earnings, but the fact that its medium- to long-term growth axis is expanding from the existing ship-centered business to the data center (DC) sector,” adding, “Guaranteed explosive growth lies ahead as revenue from high-margin DC engine aftermarket (AM) services is set to take off in earnest starting in 2030.”

Han explained, “We expect second-quarter revenue to be 529.9 billion won and operating profit to be 96.4 billion won, both of which are projected to fall short of market expectations,” attributing this to “slowing top-line growth due to the slump in the bunkering business segment and a temporary increase in operating expenses.” However, he emphasized, “It is necessary to focus on mid- to long-term growth potential rather than short-term earnings.”

In particular, the analyst highly rated the growth potential of the data center engine maintenance market. One analyst remarked, “The DC four-stroke engines secured by HD HYUNDAI HEAVY INDUSTRIES are virtually guaranteed orders for our company, which holds an exclusive maintenance license,” adding, “The estimated maintenance cycle for DC engines is three years—shorter than the five-year cycle for ships—and assuming an operational lifespan of 25 years, total maintenance revenue is projected to be approximately 2.5 times the engine sales revenue.” He added, “This is a conservative estimate based on the minimum scope of maintenance, and it is highly likely to increase to a larger scale if the contract is finalized as an O&M agreement.”

He stated, “We anticipate HD HYUNDAI HEAVY INDUSTRIES will expand its production capacity for four-stroke medium-speed gas engines and secure new orders to respond to the explosive surge in inquiries, and we forecast structural growth in the AM solutions sector as a result.” He also noted, “Amid growing demand for floating data centers (FDCs), the company is currently in discussions regarding inquiries for FDC retrofit projects,” adding, “Leveraging the advantage of shorter lead times compared to new construction, this is expected to become a new growth driver for the eco-friendly solutions division.”

One analyst added, “Following the resolution of the KKR overhang risk, the company has secured new high-margin growth drivers in its core business units: engine maintenance for data centers and FDC retrofitting,” noting, “Considering its high dividend payout ratio and virtually no capital expenditure (Capex) burden, there is ample justification for the company to command a higher multiple compared to its competitors.”