Yuanta Securities reported that the acquisition of global engine maintenance company Goltens by HD Hyundai Marine Solutions is expected to positively impact the expansion of its existing ship aftermarket (AM) business and the growth of its North American data center (DC) power engine operations. The firm maintained its target stock price at 448,000 won and reiterated its top pick status for the data center business.
HD Hyundai Marine Solutions announced it has signed a stock purchase agreement to acquire 100% of Goltens for approximately 331.5 billion won. Unlike traditional AM businesses that purchase and supply parts from engine manufacturers (OEMs), Goltens operates as an independent service provider (ISP) that directly replaces and maintains parts on-site.
Kim Yong-min, a researcher at Yuanta Securities, highlighted that a key benefit of this acquisition is the expansion of the existing business's sales network and the securing of maintenance personnel for North American data center power engines.
Kim stated, "Goltens has a business structure that utilizes parts from various engine manufacturers and directly visits ships for service. This will enhance HD Hyundai Marine Solutions' accessibility to customer vessels and enable a package sales approach from parts supply to on-site maintenance."
He also noted the potential to uncover demand for non-engine parts from vessels that are not existing customers, which could expand AM revenue. Furthermore, he explained that the company could grow into a comprehensive service provider covering all aspects of vessel operation and maintenance (O&M) as required by shipowners.
The synergy with the North American data center business is also anticipated. HD Hyundai Heavy Industries has secured two contracts this year for artificial intelligence data center (AIDC) power engines, both located in Texas. Goltens also has a business base in Texas and possesses specialized personnel capable of maintaining four-stroke engines.
Kim remarked, "Securing engineering personnel in North America is a challenge that cannot be resolved quickly with capital alone. This acquisition allows for the immediate acquisition of local service personnel necessary for expanding the data center power engine business." He also viewed positively that approximately 20% of Goltens' total revenue comes from land-based operations.
Since the acquisition cost will be covered by HD Hyundai Marine Solutions' initial public offering (IPO) funds, the financial burden is expected to be limited.
Kim added, "Once the post-merger integration (PMI) plan is solidified after the end of the year, performance estimates may be revised. This transaction will serve as a catalyst to further accelerate the existing stable long-term profit growth, and we maintain our top pick opinion for the data center business."
* This article has been translated by AI.
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