[Edaily Reporter Kwon Oh Seok ] DaishinSecurities announced on the 11th that it is maintaining its “Buy” investment rating and 800,000 won target price for HD HYUNDAI HEAVY INDUSTRIES(329180).

The previous day, the company announced plans to expand production capacity for medium-sized power generation engines—3 GW (gigawatts) per year at the new Ulsan plant (HYUNDAI INDUSTRIAL CO.,LTD) and 1 GW per year at the Mokpo plant (Hyundai Marine Engine)—through an investment of 833.6 billion won.
In response, Lee Ji-ni, an analyst at DaishinSecurities, stated, “Himsen Engine’s total production capacity is expected to expand to 7.2 GW by 2028 (3.2 GW for marine engines and 4 GW for onshore power generation)
. While the existing Ulsan plant will focus on marine engines, the Mokpo plant will be able to flexibly mix production between marine and power generation applications," adding, "As the revenue share of power generation engines increases, the margin mix is also expected to improve over the medium to long term."
He analyzed, “While medium-term demand for medium-sized engines will expand primarily driven by power demand for AI (artificial intelligence) data centers, the demand base is currently growing across various sectors, including general industrial power generation, grid reinforcement, emergency power generation for nuclear and gas turbine plants, and Powerships (large-scale power supply facilities).”
He went on to emphasize, “In particular, as delays in grid connection and constraints on gas turbine supply persist amid the global expansion of AI data centers (AIDCs), the value of medium-speed power generation engines—which can provide on-site power with relatively short lead times—is increasing. We expect that as this supply-driven environment continues, price competitiveness will also improve.”
HD HYUNDAI HEAVY INDUSTRIES has also invested 238.6 billion won in new facilities related to SMRs (small modular reactors). This is aimed at proactively entering the market for manufacturing Generation 4 SMR primary equipment through collaboration with TerraPower. The analyst emphasized, “The new facility is capable of producing two units per year of TerraPower’s sodium-cooled fast reactor (Natrium)-type SMR primary equipment,” adding, “Within the current cooperative framework with HyundaiEngineering&Construction and TerraPower, we plan to be responsible for manufacturing core primary equipment—such as the reactor, vessel, and structural components.”
He further noted, “This investment will serve as a medium- to long-term growth driver by enabling us to secure manufacturing capabilities early on that can be expanded beyond onshore power generation to include carbon-free power sources for data centers, offshore power generation facilities, and, in the long term, nuclear-powered ships.”