According to the Korea Exchange, shares were up 12,600 won, or 7.58%, at 177,500 won as of 2:30 p.m. The stock touched 178,000 won during the session, its highest level on record.
The gains were widely attributed to expectations the company will expand its push into the European market. The company said the previous day it signed a contract to supply 264 units of its G2 engine for generators to Portuguese generator maker Grupel.
The deal is aimed at meeting rising demand for mobile generators in Europe and replacement demand driven by tighter emissions rules. The G2 is a small engine that meets Europe’s Stage V emissions standards and features a high-pressure fuel injection system and fuel-efficiency improvements designed to boost performance and durability.
HD Construction Equipment said it plans to pursue additional orders for mid-sized engines such as the DX05 and DX08. It aims to lift European power-generation engine sales from 40 billion won to 67 billion won by 2030, and to expand total power-generation engine sales to about 770 billion won from 370 billion won in 2025.
Market watchers also point to growth in Europe’s generator market. Research firm Mordor Intelligence forecasts the European diesel generator market will grow from $3.87 billion in 2026 to $4.74 billion in 2031, an average annual increase of 4.18%.
Brokerage analysts have also maintained a positive outlook on the stock as industry conditions improve. Samsung Securities analyst Han Young-soo said, “As the global construction equipment market enters a rebound phase, HD Construction Equipment, which has a large base effect, is expected to grow faster,” adding that demand tied to U.S. dealer inventory buildup, stabilization in Europe, firm raw material prices and the industry cycle point to a continued recovery.
* This article has been translated by AI.
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