HD Hyundai Marine Solutions is experiencing a 5% increase in its stock price, driven by growth expectations in its data center engine maintenance business.
As of 2:23 PM on September 11, the company’s shares were trading at 242,500 won, up 13,000 won (5.66%) from the previous trading day, according to the Korea Exchange.
The rise in stock price is attributed to HD Hyundai Heavy Industries' announcement of a larger-than-expected expansion plan for its power engine production capacity, which is expected to enhance the profitability of HD Hyundai Marine Solutions' maintenance business.
On the same day, NH Investment & Securities raised its target price for HD Hyundai Marine Solutions from 280,000 won to 310,000 won, reflecting a 10.7% increase. The firm initially estimated the expansion of data center engines at 1.5 GW, but the actual expansion was set at 3.3 GW, more than double the initial forecast.
Jeong Yeon-seung, a researcher at NH Investment & Securities, stated, "We expect the data center engine maintenance business to generate approximately 90.1 billion won in operating profit by 2030."
The increasing number of engine installations is expected to contribute to the growth of the maintenance business. Jeong noted, "Data center engines have higher operational rates and unit prices compared to marine engines, making them the most profitable among the engines currently under maintenance. Unlike large shipbuilders facing concerns about peak performance, HD Hyundai Marine Solutions' profit growth cycle is expected to continue beyond 2030."
NH Investment & Securities forecasts that HD Hyundai Marine Solutions will achieve sales of 2.336 trillion won this year, a 17.8% increase from the previous year, and an operating profit of 389 billion won, up 11.0%.
* This article has been translated by AI.
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