On the 24th, Jeong Yeon-seung, an analyst at NH INVESTMENT & SECURITIES, stated, “As regular maintenance for ships equipped with dual-fuel engines begins in earnest starting in 2027, revenue from high-margin engine maintenance is expected to increase,” adding, “The company is projected to enter a cycle of annual operating profit growth exceeding 30% from 2027 to 2028.”HD HYUNDAI MARINE SOLUTION CO., LTD is a company that provides maintenance, retrofitting, and digital services throughout the entire ship lifecycle. NH INVESTMENT & SECURITIES explained that as the number of ships equipped with engines manufactured by the HD HYUNDAI Group accumulates, the number of ships requiring maintenance also increases, creating a structure where profits rise in a step-like manner. NH INVESTMENT & SECURITIES forecasted that stable earnings growth would continue, driven primarily by long-term service agreements (LTSAs) and subscription-based services such as OceanWise. The firm also expects cumulative growth in demand for retrofitting and subscription-based services as demand for automated ship operations and improved fuel efficiency expands. Analyst Jeong noted, “Unlike major shipbuilders, which face concerns about profit peaking, HD HYUNDAI MARINE SOLUTION CO., LTD’s earnings improvement cycle is highly likely to continue beyond 2030—this is a key differentiating factor for investors.”
Furthermore, with a dividend payout ratio reaching 50–70%, the firm projected that long-term profit growth would lead to increased dividends and enhanced shareholder value over the medium to long term.
He also identified new growth drivers for the medium to long term. He projected that the market for data center engine maintenance would grow as HD HYUNDAI HEAVY INDUSTRIES secures more orders for medium-speed engines for data centers and expands its production capacity. In particular, he analyzed that the maintenance business is expected to expand because gas engines for data centers have higher utilization rates than marine engines and, consequently, relatively shorter maintenance cycles.
Researcher Jeong stated, “Operating profit from the data center engine maintenance business is projected to reach 80 billion won by 2030,” and predicted that the retrofitting of Floating Storage and Regasification Units (FSRUs) and Floating Storage Units (FSUs) used in natural gas infrastructure, as well as future demand for ship retrofitting to build floating data centers, would also present medium- to long-term growth opportunities.
