Hyundai Hyms

Hyundai HIMS was established in 2008 through an in-kind contribution of HD Hyundai Heavy Industries' ship-block and piping manufacturing divisions and listed on KOSDAQ in 2024.

Its core business covers ship blocks, piping and outfitting painting, and block internal components (BLT, steel plates, section steel), with engine-room blocks as a flagship product.

Operating seven plants—Pohang 1&2, Daebul 1-4, and Naengcheon—the company holds an annual block production capacity of roughly 200,000 tons, reportedly the largest among external block makers.

Its customers are the three HD Hyundai-affiliated shipbuilders: HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo, and a substantial share of revenue is concentrated with these clients.

In the 2025 revenue mix, manufacturing items such as ship structural components made up most of sales, while the port-crane business contributed KRW 19.6bn (about 7.9%) as a new revenue source. A subsidiary also produces industrial gas generators using pressure swing adsorption (PSA) technology.

Using the Daebul No.4 plant, the company produces port cranes including double-trolley container cranes (DTQC) in cooperation with HD Hyundai Samho, and in June 2026 it decided to acquire 100% of Daesang Heavy Industries, a ship-block maker in Yeongam, South Jeolla Province, for KRW 36.1bn through a KAMCO public auction, adding an adjacent production site. The company is also preparing new land for producing independent tanks for LNG and ammonia.

Hyundai HIMS's annual revenue grew for four consecutive years, from KRW 144.8bn in 2022 to KRW 189.2bn in 2023, KRW 223.2bn in 2024, and KRW 248.2bn in 2025.

Operating profit, which was only KRW 3.8bn (2.6% margin) in 2022, rose markedly to KRW 14.5bn (7.6%) in 2023, KRW 21.5bn (9.7%) in 2024, and KRW 28.8bn (11.6%) in 2025, reflecting a clear profit recovery and margin improvement.

Net income attributable to owners similarly expanded from KRW 4.4bn in 2022 to KRW 21.4bn in 2025.

On a quarterly basis, revenue and operating profit eased from KRW 62.3bn/KRW 8.3bn in Q2 2025 to KRW 60.6bn/KRW 6.8bn in Q3 and KRW 66.9bn/KRW 6.5bn in Q4, before rebounding notably to KRW 64.6bn/KRW 8.5bn in Q1 2026 and KRW 72.8bn/KRW 12.2bn in Q2 2026.

The Q2 2026 operating profit of KRW 12.2bn was the highest of the last five quarters, reflecting higher unit prices from increased high-value-added vessel orders at client shipyards along with growing port-crane sales and process automation gains.

The company's Q1 2026 quarterly report attributed operating profit growth to "unit price increases from expanded high-value-added vessel order volumes at customer shipyards." Over the trailing four quarters (Q3 2025-Q2 2026), owner net income totaled roughly KRW 24.9bn, suggesting the annual profit base has stepped up.

However, since Daesang Heavy Industries carries comparatively lower profitability (an operating margin of roughly 2% in its most recent fiscal year), consolidated margins may be diluted going forward, warranting continued monitoring.

Global shipbuilding continues in a so-called super-cycle phase, driven by rising orders for high-value-added vessels such as LNG carriers and ammonia-fueled ships amid tightening environmental regulations, with order backlogs at major Korean shipbuilders including HD Hyundai Heavy Industries and HD Hyundai Samho reportedly at record highs.

As an external block maker, Hyundai HIMS is directly affected by client order growth, with its block-segment utilization rate reported at about 82% in 2025.

In the port-crane market, China's ZPMC holds roughly 80% global market share, but the U.S. government has flagged plans to invest about USD 20bn over five years to replace Chinese-made cranes on security grounds, highlighting a "de-China" tailwind.

Domestically, port-crane orders totaling 186 units worth about KRW 2.2tn are reportedly planned through 2031, opening further order opportunities.

Competitively, Hyundai HIMS is reported to hold the largest production capacity among external block makers, with its long-standing relationship with the HD Hyundai group acting as an entry barrier.

That said, the shipbuilding cycle remains sensitive to shipping volumes, the global economy, and geopolitical variables, so the possibility of a cyclical reversal should also be considered.

In its Q1 2026 quarterly report, the company explained that stable order volumes for ship blocks from customers and the effects of 2022 facility investments are driving revenue growth, and it expects continued benefits from unit price increases tied to expanded high-value-added vessel orders.

The port-crane business has built production capability for up to 10 units annually via the Daebul No.4 plant, with plans reportedly to expand capacity to 12-15 units.

The Daesang Heavy Industries acquisition, decided in June 2026, was scheduled to close on July 28, with the rationale being immediate use of an adjacent production site near the Daebul No.2 plant without new capital investment.

However, since Daesang's operating margin in its most recent fiscal year (roughly 2%) is lower than Hyundai HIMS's own, consolidated operating margins could be diluted somewhat, leaving profitability improvement through new volume allocation and higher utilization as a task ahead.

Controlling shareholder J&PE has reportedly selected NH Investment & Securities and Samil PwC as sale advisors and is in contact with potential domestic and overseas buyers, while second-largest shareholder HD Korea Shipbuilding & Offshore Engineering has stated it does not intend to reacquire the stake, leaving the direction of a new ownership structure as a variable that could affect future corporate value.

Plans for utilizing new plant sites to produce independent tanks for LNG and ammonia are also reportedly under review.