KOSPIMachinery017800

Hyundai Elevator

₩73,000▲ 1.25%2026-10-02 close

Market Cap

₩2.8T

Turnover

₩5.1B

Volume

70,000 shares

Shares out.

39.1M

PER

7.4×

PBR

2.5×

EPS

₩10,176

Dividend Yield

18.70%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩14,010 per share · Prices as of the 2026-10-02 close

Report overview

Double-digit margin, but earnings quality needs checking

Even with revenue contracting, the operating margin has climbed from 2.0% in 2022 to 12.2% in Q2 2026, yet the fact that much of net profit comes from non-operating items is the key variable in reading this company.

1
The annual operating margin rose for four straight years from 2.0% in 2022 to 3.2% in 2023, 7.8% in 2024 and 8.5% in 2025, and in Q2 2026 revenue of KRW 692.8bn and operating profit of KRW 84.5bn produced a quarterly margin of 12.2%.
2
2025 revenue of KRW 2,467.4bn fell from KRW 2,885.3bn in 2024, but the drop in operating profit was proportionally smaller, showing a structure where mix rather than volume drives profitability.
3
Quarters where net profit far exceeded operating profit have recurred, such as Q3 2025 (KRW 147.1bn) and Q2 2026 (KRW 161.9bn), so assessing earnings durability requires checking non-operating items.
4
In a February 2026 fair disclosure the company guided to separate-basis revenue of KRW 1,838.3bn, operating profit of KRW 154.5bn and orders of KRW 2,035.2bn, but in 2025 revenue, operating profit and orders all came in well below the year-start outlook.
5
Having stated it would use the entire proceeds from its indirect SpaceX investment for a special dividend, related disclosures and SpaceX's share price affect both dividends and valuation gains or losses.

Business structure

Hyundai Elevator manufactures and sells elevators, escalators and moving walks, and also handles installation, maintenance and modernization of aging equipment.

According to a June 2026 report by Korea Economic TV, the elevator, escalator and moving walk manufacturing and sales business accounts for about 71.7% of total revenue.

It holds the position of effectively the only large domestically owned player in the Korean market, and a February 2026 feature by Newslock reported that Hyundai Elevator has been number one for 18 consecutive years with a 32.6% market share, with its maintenance network and nationwide service coverage as core competitive strengths.

The same article explained that the combined share of the Big 3, Hyundai Elevator, Otis Elevator and TK Elevator, stands at 73.2%, sustaining an oligopolistic structure.

Structurally, new installation is directly tied to the construction cycle, while maintenance and replacement revenue built on the installed base is less cyclical and carries higher margins.

Samsung Securities forecast in an April 2026 report that the maintenance segment carries an operating margin above 20%, overwhelmingly higher than new installation, with stable growth expected as the installed base of elevators grows.

On technology, its AI-based maintenance service MIRI, built on the internet of things and cloud, offers component life measurement and pre-emptive fault detection, with reported reductions in downtime of up to 43%.

The consolidated group includes Hyundai Movex in logistics automation and Hyundai Asan, which holds North Korea business rights, so subsidiary results and asset values also flow into consolidated earnings.

Its customer chain runs from apartment builders and commercial or public infrastructure owners through to post-completion building managers, making long-term contract retention at each installed site the real battleground.

Earnings trend

Quarterly revenue · Operating profit

₩637.5B₩55.5B25Q2₩600.8B₩51.1B25Q3₩634.7B₩54.3B25Q4₩545.8B₩40.5B26Q1₩692.8B₩84.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩2.1T₩43B2022₩2.6T₩82.6B2023₩2.9T₩225.7B2024₩2.5T₩209.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩637.5B	₩55.5B	8.7%
2025Q3	₩600.8B	₩51.1B	8.5%
2025Q4	₩634.7B	₩54.3B	8.6%
2026Q1	₩545.8B	₩40.5B	7.4%
2026Q2	₩692.8B	₩84.5B	12.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩2.1T	₩43B	₩78.4B	2.0%	6.8%	158.4%
2023	₩2.6T	₩82.6B	₩318.9B	3.2%	24.8%	157.8%
2024	₩2.9T	₩225.7B	₩183.2B	7.8%	14.6%	166.2%
2025	₩2.5T	₩209.2B	₩262B	8.5%	19.4%	157.8%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On an annual basis, revenue rose from KRW 2,129.3bn in 2022 to KRW 2,602.1bn in 2023 and KRW 2,885.3bn in 2024, then fell to KRW 2,467.4bn in 2025.

Operating profit, by contrast, went from KRW 43.0bn in 2022 (2.0% margin) to KRW 82.6bn in 2023 (3.2%), KRW 225.7bn in 2024 (7.8%) and KRW 209.2bn in 2025 (8.5%), so the margin improved even as 2025 revenue shrank.

That points to a structure where the maintenance and replacement mix and pricing discipline matter more to margins than volume growth.

Net profit attributable to owners was KRW 78.4bn in 2022, KRW 318.9bn in 2023, KRW 183.2bn in 2024 and KRW 262.0bn in 2025, diverging from the operating trend in several years; 2023 in particular pared KRW 82.6bn of operating profit with KRW 318.9bn of net profit, an overwhelming non-operating contribution.

Operating cash flow expanded sharply from KRW 49.4bn in 2023 to KRW 256.4bn in 2024 and KRW 255.6bn in 2025, indicating better cash conversion of profits.

Quarterly, revenue and operating profit were KRW 637.5bn and KRW 55.5bn in Q2 2025, KRW 600.8bn and KRW 51.1bn in Q3, and KRW 634.7bn and KRW 54.3bn in Q4, holding a mid-8% margin, before Q1 2026 showed seasonal softness at KRW 545.8bn and KRW 40.5bn (7.4%).

Q2 2026 then delivered revenue of KRW 692.8bn, up about 8.7% year on year, and operating profit of KRW 84.5bn, up about 52%, for a 12.2% margin, the highest of the last five quarters.

However, net profit attributable to owners of KRW 161.9bn in that quarter was close to double operating profit, suggesting, as in Q3 2025 with KRW 147.1bn of net profit against KRW 51.1bn of operating profit, a large non-operating influence.

On the balance sheet, the debt-to-equity ratio fell from 166.2% in 2024 to 157.8% in 2025, with owners' equity of KRW 1,352.1bn and total liabilities of KRW 2,278.7bn at end-2025.

Industry analysis

Korea's elevator industry runs on a dual structure of new installation plus maintenance and replacement, and the centre of gravity in the current cycle is shifting to the latter.

Newslock reported that with new installation volumes shrinking to around 30,000 units a year amid the construction downturn, the industry is positioning AI-based maintenance systems and overseas expansion as survival strategies.

The same article explained that aging complexes in first-generation new towns such as Bundang, Ilsan, Jungdong, Pyeongchon and Sanbon are choosing full elevator replacement as a practical alternative as redevelopment drags on. The global direction is similar.

Mordor Intelligence projected the elevator and escalator market growing from USD 136.3bn in 2026 to USD 180.3bn in 2031, a 5.75% compound annual rate, and saw new installation accounting for 47.9% in 2025 while modernization grows fastest at an 8.0% annual rate through 2031.

On the competitive front, foreign players are reshaping their Korean operations: Otis Elevator acquired Schindler Elevator's Korean business in October 2025, expanding its market influence. A structural drag on profitability is also clear.

The recommended standard maintenance fee for passenger elevators published by the Korea Elevator Safety Agency was in the low KRW 200,000s per month as of 2025, but because it is non-binding, contracts are reportedly often signed well below that level.

The upshot is an industry offsetting weaker new volumes with deeper replacement and maintenance penetration, where the ceiling on margins depends on how well low-price bidding competition is contained.

Outlook

In a fair disclosure on 10 February 2026, the company guided to 2026 revenue of KRW 1,838.3bn, operating profit of KRW 154.5bn and orders of KRW 2,035.2bn. Because the company specified that this is a separate-basis business plan under Korean IFRS, it should not be compared directly with consolidated results.

The track record on guidance, however, warrants attention. On a separate basis in 2025, revenue came in at KRW 1,607.1bn against guidance of KRW 1,932.2bn (a -16.8% gap), operating profit at KRW 150.8bn against KRW 210.5bn (-28.4%), and orders at KRW 1,645.0bn against KRW 2,162.0bn (-23.9%), all short of plan.

On shareholder returns, the company has set a policy of achieving a total return ratio of at least 50%, including dividends and share buybacks and cancellations, through 2027. A non-operating asset variable is layered on top.

The company invested about KRW 18.0bn in SpaceX on two occasions, in 2021 and 2024, through a fund set up by Link Asset Partners, and media projected the stake could be worth up to USD 150m upon listing.

At a March 2026 investor relations event for institutional investors, the company said it would recover the investment at an appropriate time after SpaceX's IPO was completed and use the entire proceeds as a source for a special dividend.

Among brokerages, Leading Investment & Securities presented a target price of KRW 95,000 in a 21 July 2026 report, forecasting 2026 revenue of KRW 2,630.0bn and operating profit of KRW 214.0bn, while Samsung Securities, initiating coverage in April 2026, presented a target price of KRW 120,000 and pointed to potential monetization of non-operating assets such as its Hyundai Movex stake and real estate as additional funding for shareholder returns.

Valuation

PER

7.4×

PBR

2.5×

ROE

32.4%

EPS

₩10,176

BPS

₩30,027

Dividend per share

₩14,010

The multiples on this company read quite differently depending on which earnings base is used.

Measured on net profit over the last four quarters, the earnings multiple sits in a lower range than the domestic machinery and equipment sector average, but that net profit includes two quarters in which non-operating items far exceeded operating profit, so the earnings-based multiple may screen lower than the underlying core business would suggest.

Conversely, the stock trades at a premium to net assets, and a high total return policy through dividends and buybacks, which works against large accumulation of equity, is part of the backdrop to that gap.

It is also worth noting that book value per share differs between our own calculation and the Korea Exchange disclosure basis, so the price-to-book figure varies with the source used.

On dividends, the stock is widely cited in the market as a representative high-dividend name, and a stated plan for a special dividend funded by SpaceX proceeds sits on top of that, meaning the range of possible payout levels widens depending on whether that is actually disclosed.

In sum, core margins held an improving direction over four years and profits recovered, but interpreting the multiples hinges on how much of the non-operating gains one treats as repeatable earnings.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Margin step-up driven by mix improvement

The rise in annual operating margin from 2.0% in 2022 to 8.5% in 2025, and further to 12.2% in Q2 2026, is not explained by volume alone. That the margin improved in 2025 even as revenue fell from the prior year points to a meaningful mix effect.

Samsung Securities forecast in an April 2026 report that a rising share of the maintenance segment, which carries margins above 20%, would drive structural profitability improvement.

Maintenance and replacement revenue accumulates with the installed base, leaving room for margin improvement even while the new installation market contracts.

Explicit return policy plus non-operating assets

The company has set a policy of achieving a total shareholder return ratio of at least 50% through 2027, including dividends and share buybacks and cancellations.

To that was added its March 2026 investor relations comment that it would use the entire proceeds from recovering its SpaceX investment as a source for a special dividend.

Samsung Securities analysed in an April 2026 report that possible monetization of non-operating assets such as its Hyundai Movex stake and various real estate could also serve as additional funding for shareholder returns.

Operating cash flow holding at KRW 256.4bn in 2024 and KRW 255.6bn in 2025 underpins the cash basis for such returns.

Demand shifting toward the replacement market

Mordor Intelligence projected that while new installation accounted for 47.9% of the market in 2025, modernization would grow fastest at an 8.0% annual rate through 2031.

Domestically, aging complexes in first-generation new towns are increasingly choosing full elevator replacement as a practical alternative as redevelopment timelines stretch out.

Replacement and modernization work often carries more favourable pricing and margins than new installation, and incumbents holding existing maintenance contracts have easier access to it.

Being the domestic share leader with a nationwide service network as its stated strength ties directly to room for improving penetration in this area.

Bear factors

Shrinking new installation volumes and share competition

Domestic new installation volumes have contracted to around 30,000 units a year amid the construction downturn. The fall in consolidated revenue from KRW 2,885.3bn to KRW 2,467.4bn in 2025 is not unrelated to that weaker end demand.

The competitive environment is also tightening: Otis Elevator expanded its position by acquiring Schindler Elevator's Korean business in October 2025.

Leading Investment & Securities forecast in a July 2026 report that a market share expansion strategy would push average selling prices down, limiting the scale of operating profit improvement.

Reliance on non-operating gains and reversal risk

In 2023 operating profit of KRW 82.6bn came with net profit to owners of KRW 318.9bn; in Q3 2025, KRW 51.1bn of operating profit with KRW 147.1bn of net profit; and in Q2 2026, KRW 84.5bn with KRW 161.9bn. Such gaps mean non-operating items drive a large share of net profit, and they can work in the opposite direction.

Indeed, Digital Times reported that with SpaceX shares trading below their IPO price in the second half, much of the valuation gain recognised in the second quarter was likely to reverse into a valuation loss in the third.

Profits based on mark-to-market gains crystallise differently depending on the timing and price of exit, so they warrant separate treatment from core operating profit.

History of missing guidance and financial leverage

On a separate basis in 2025, revenue missed guidance by 16.8%, operating profit by 28.4% and orders by 23.9%, with all three well below the company's own outlook.

That makes the 2026 separate-basis guidance of KRW 1,838.3bn in revenue, KRW 154.5bn in operating profit and KRW 2,035.2bn in orders a set of figures whose achievement rate needs monitoring.

The balance sheet has improved, but the debt-to-equity ratio has hovered in the high 150s, at 158.4% in 2022, 157.8% in 2023, 166.2% in 2024 and 157.8% in 2025, so leverage itself is not low.

The project-based nature of installation work, with advances received and unbilled receivables, adds another source of financial volatility.

Risk factors

End-market construction demand

New installation revenue tracks housing and commercial construction starts with a lag, so continued declines in starts would weigh on both orders and revenue recognition. The industry assessment that new installation volumes have shrunk to around 30,000 units a year shows this risk is already in play.

Globally, analysis suggests 193 of the 259 high-rise projects stalled through end-2025 are concentrated in China, raising the point that announced project pipelines may overstate near-term equipment demand.

Investment asset valuation volatility

The company invested about KRW 18.0bn indirectly in SpaceX through a fund on two occasions, in 2021 and 2024. Because it is a fund commitment structure, observers noted that this is not a direct holding and that estimates exclude fund fees, and realised proceeds will depend on exit timing and price.

In addition, with SpaceX shares trading below the IPO price in the second half and a reversal of second-quarter valuation gains being discussed, quarterly net profit volatility could increase. The size and form of any special dividend has also not yet been confirmed in a disclosure.

Governance and ownership structure

As of end-2025 the largest shareholder was Hyundai Holdings Company with 20.13%, and the combined stake including related parties was 22.2%, reported to have risen to 22.93% after executive changes and March 2026 transactions.

Chung Ji-yi, an executive at Hyundai Movex, bought 289,000 common shares on the market in four tranches between 23 and 26 March 2026 for about KRW 24.8bn, lifting her stake from 0.4% to 1.09%.

Where absolute ownership is not high, funding needs related to control and dividend policy can interact, so the rationale and durability of the return policy deserve joint scrutiny. Ownership changes should be verified as facts and are not something to interpret as a direct read on share price direction.

What to watch next

Mid-November 2026
In the Q3 2026 quarterly report, check whether the operating margin holds near the 12.2% seen in Q2 and which way non-operating items swing. With SpaceX shares below the IPO price in the second half and a reversal of valuation gains under discussion, the gap between net and operating profit is the key thing to watch.
Q4 2026
Watch disclosures for actual progress on the company's statement that it would recover its SpaceX investment at an appropriate time after the IPO and use all proceeds for a special dividend. The key is whether the recovered amount and the size and timing of any special dividend appear in a confirmed filing.
Around February 2027
Alongside confirmed full-year 2026 results, check the achievement rate against separate-basis guidance of KRW 1,838.3bn in revenue, KRW 154.5bn in operating profit and KRW 2,035.2bn in orders, plus the 2027 business plan fair disclosure. Since all three metrics fell well short of guidance in 2025, the deviation rate itself is a monitoring indicator.
March 2027 annual general meeting season
Check whether the actual return, combining the year-end dividend with buybacks and cancellations, is consistent with the company's policy of a total return ratio of at least 50% through 2027. It also matters whether the funding comes from core operating cash flow or from disposal of non-operating assets.
H2 2026 to H1 2027 (ongoing)
Track domestic new installation volumes, modernization order trends and the direction of maintenance contract pricing. Because the recommended standard maintenance fee is non-binding and field contracts are reportedly often signed well below it, whether volume recovery translates into margin improvement must be assessed separately.

Overall view

Hyundai Elevator is the domestic market leader for 18 consecutive years with a 32.6% share, and it stands at a point where the business centre of gravity is shifting from new installation toward maintenance and replacement.

On confirmed results, revenue fell from KRW 2,885.3bn in 2024 to KRW 2,467.4bn in 2025 while the operating margin rose from 7.8% to 8.5%, and Q2 2026 delivered KRW 692.8bn of revenue and KRW 84.5bn of operating profit for a 12.2% margin.

At the same time, quarters in which net profit far exceeded operating profit have recurred, as in Q3 2025 and Q2 2026, making the nature and repeatability of non-operating items central to judging earnings quality.

On the positive side sit the maintenance-led mix improvement, a policy of at least a 50% total shareholder return ratio through 2027, and the company's stated intention to use all SpaceX recovery proceeds for a special dividend.

On the negative side are new installation volumes shrunk to around 30,000 units a year, a guidance record in which all three 2025 metrics fell well short of the outlook, and the possibility that valuation gains reverse as SpaceX shares fell in the second half.

What needs checking therefore narrows to two things: whether the core operating margin settles in double digits, and whether profits arising from non-operating assets convert into actual cash returns. This report is for information purposes and does not contain a buy or sell opinion on any security.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.