[Edaily Reporter Kim Hyung-il ] IBK Investment & Securities forecasts that HD KOREA SHIPBUILDING & OFFSHORE ENGINEERING(009540)will pay a year-end dividend of 14,400 won per share. This projection is based on the assumption that the company will maintain a consolidated dividend payout ratio of 40%, resulting in a dividend yield of approximately 6% based on the current stock price. Analysts predict that the company’s investment appeal will continue, driven by earnings growth and increased dividends stemming from the boom in the shipbuilding industry. Accordingly, the firm maintained its “Buy” rating and target price of 410,000 won.

On the 29th, Jang Seong-ho, an analyst at IBK Investment & Securities, reported that HD KOREA SHIPBUILDING & OFFSHORE ENGINEERING’s consolidated revenue for the third quarter of this year reached 8.2862 trillion won, a 9.3% increase year-over-year. Operating profit rose 37.3% to 1.4472 trillion won, while net income attributable to controlling shareholders decreased 1.5% to 623.5 billion won. Revenue, operating profit, and net income all met market estimates.

Revenue decreased by 7.2% compared to the previous quarter due to a reduction in operating days and the strengthening of the Korean won. Operating profit also fell by 12% from the previous quarter, as 75% of the performance bonuses and incentive payments resulting from the settlement of wage and collective bargaining agreements in the shipbuilding division were recognized in the third quarter. Non-operating losses totaled 363.7 billion won. While financial losses of 8.6 billion won and foreign exchange-related losses of 610.2 billion won were incurred, other non-operating income, including gains on financial instruments, amounted to 255.1 billion won. Subsidiary HD HYUNDAI Samho posted an operating profit of 479.0 billion won, driven by an increased share of sales from liquefied natural gas (LNG) carriers and improved productivity.

IBK Investment & Securities highlighted the potential for increased dividends. HD KOREA SHIPBUILDING & OFFSHORE ENGINEERING is expected to pay out 40% of its consolidated net income as dividends this year to meet the criteria for a high-dividend company. Analysts also suggest that the company’s dividend payout is likely to increase, given the need to secure dividend funds for its parent company, HD HYUNDAI.

Research Analyst Jang assessed that dividend visibility remains high through 2028, based on the shipbuilding division’s substantial order backlog. He explained that if HD KOREA SHIPBUILDING & OFFSHORE ENGINEERING maintains a consolidated dividend payout ratio similar to that of HD HYUNDAI HEAVY INDUSTRIES, while the unlisted subsidiary HD Hyundai Samho continues to maintain a higher payout ratio, the company could simultaneously return value to shareholders through dividends and secure investment funds.

Analyst Jang stated, “A structure can be established where the listed company returns profits to shareholders through dividends, while dividends from unlisted subsidiaries are utilized as investment capital for new businesses,” adding, “Investors can enjoy the fruits of the shipbuilding boom through dividends while also anticipating the potential for additional growth through new businesses.”