# Stx Heavy Indu (071970.KO)

Canonical: https://gigainvestors.com/s/071970.KO

Analysis as of: 2026-10-16T07:43:47.141Z. Financial observations: FY2018–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 40,250.00 per share; close as of 2026-10-15.

Estimated value: low KRW 32,074.58 per share, central KRW 34,786.95 per share, high KRW 38,397.70 per share. Buy at or below the central value KRW 34,786.95 per share. Valuation as of 2026-10-16T07:43:47.141Z; scenarios are not confidence intervals.

Expected annual return: 8.6% at the stated quote. About 8.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 2

- Years with a net loss: 3

- Operating margin variation: 1.98×

Chart: Operating margin; fiscal year observations.

- FY2018: -0.07×

- FY2019: -0.05×

- FY2020: 0.01×

- FY2021: -0.08×

- FY2022: 0.07×

- FY2023: 0.06×

- FY2024: 0.10×

- FY2025: 0.19×

- LTM to Jun 2026: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.9%

- ROIC, second-lowest year: -4.2%

- Typical minus recent gross margin: -8.3 pp

- Typical gross margin (annual median): 13.7%

- Recent gross margin (lower of latest and 3-year median): 22.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 3.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: -4.2%

- FY2019: -3.9%

- FY2020: 0.5%

- FY2021: -4.4%

- FY2022: 5.3%

- FY2023: 6.3%

- FY2024: 16.5%

- FY2025: 48.8%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 275B

- Net income, five-year total: KRW 279B

- Return on incremental invested capital: 111.8%

- Working capital / revenue, annual change: -0.5 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.16×

- FY2022: 0.95×

- FY2023: 0.98×

- FY2024: 0.99×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -3.9% vs 16.5%

- Per-share earnings: -1239.71 to 2459.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 3.6%

- Market cap gain: KRW 2.88T

- Cumulative retained earnings: KRW 702B

- Diluted shares, 5-year annual growth: 3.6%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW 4K

- Per-share value, starting three-year median: KRW -1K

- Per-share value, ending three-year median: KRW 2K

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- ROIC, first three-year median: -3.9%

- ROIC, last three-year median: 16.5%

Chart: Earnings per share; fiscal year observations.

- FY2018: KRW -4K

- FY2019: KRW -1K

- FY2020: KRW 38.90

- FY2021: KRW -275.98

- FY2022: KRW 499.00

- FY2023: KRW 1K

- FY2024: KRW 2K

- FY2025: KRW 5K

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 1.57×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.09×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -20.5%

- FY2019: -4.8%

- FY2020: -3.0%

- FY2021: -5.3%

- FY2022: 8.3%

- FY2023: -1.0%

- FY2024: -5.2%

- FY2025: -1.9%

## Holders

## Price story

Down 62% since Apr 2026 · sales +19.7%

Story as of 2026-10-16T10:00:12.829Z; price observation 2026-10-15.

Price needs cash profits to grow 3.6% a year for ten years

### Sales · FY2025–2026

sales +19.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: KRW 215B 

- FY2019: KRW 254B 

- FY2020: KRW 248B 

- FY2021: KRW 164B 

- FY2022: KRW 179B 

- FY2023: KRW 244B 

- FY2024: KRW 316B 

- FY2025: KRW 402B 

- FY2026: KRW 482B 

### Gross margin · FY2025

gross margin 25.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 0.2% 

- FY2019: 5.3% 

- FY2020: 11.2% 

- FY2021: 8.3% 

- FY2022: 16.2% 

- FY2023: 17.3% 

- FY2024: 22.0% 

- FY2025: 25.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are KRW 402.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2025: revenue 402396221900; grossProfit 102637205060; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 071970.KO: HD-Hyundai Marine Engine Co., Ltd. manufactures and sells marine engines, industrial facilities, and plants in South Korea and internationally. The company produces high-quality large-sized low-speed diesel engines for ships and power plants. It also provides technical support and engine spare parts, such as exh.valve, fuel valve, fuel pump, piston, stuffing box, bearings, pipes, and cylinder cover, as well as turbocharger parts. It also engages in the development, manufacture, and sale of wind equipment, as well as provides shipbuilding equipment. The company was formerly known as STX Heavy Industries Co., Ltd. and changed its name to HD-Hyundai Marine Engine Co., Ltd. in July 2024. HD-Hyundai Marine Engine Co., Ltd. was founded in 1976 and is headquartered in Changwon-si, South Korea.

### Why customers stay

Margins ranged from 17.3% to 25.5% during 2023–25; it earns 2.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2023: grossProfit / revenue = 17.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2024: grossProfit / revenue = 22%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2025: grossProfit / revenue = 25.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); 8-year return on capital observations [[2018,-0.042298942237438825],[2019,-0.03941813441382345],[2020,0.005382291049891497],[2021,-0.04380585173424358],[2022,0.05327256841979497],[2023,0.06251752102567089],[2024,0.16472050153431625],[2025,0.48776169106196315]]; median 0.029327429734843233. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 6.1% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2020: growth capex 0; upkeep 1538500440; owner earnings 3283893498. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2022: growth capex 8269942950; upkeep 1238255000; owner earnings 13440363340. Growth capex / owner earnings = 0.6153065018255675.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2023: growth capex 2949435050; upkeep 2559801000; owner earnings 30970247180. Growth capex / owner earnings = 0.09523446916189579.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2024: growth capex 5043265030; upkeep 3207008000; owner earnings 75289385030. Growth capex / owner earnings = 0.06698507403122562.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); FY2025: growth capex 10033784660; upkeep 3765492000; owner earnings 164741567050. Growth capex / owner earnings = 0.06090621110186896.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); Incremental return on capital 1.1184482025819529, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); Dividend observations: [[2018,0],[2019,0],[2020,0],[2021,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 35.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 071970.KO SharesStats.PercentInsiders = 35.066 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:47.141Z); Ten-year compound average after fade. Initial solved rate 0.039005904104081224. Price 40250; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-11: KRW 243,200.00 per share

- 2016-12: KRW 187,200.00 per share

- 2017-01: KRW 442,400.00 per share

- 2017-02: KRW 442,400.00 per share

- 2017-03: KRW 442,400.00 per share

- 2017-04: KRW 442,400.00 per share

- 2017-05: KRW 84,400.00 per share

- 2017-06: KRW 81,200.00 per share

- 2017-07: KRW 74,800.00 per share

- 2017-08: KRW 75,760.00 per share

- 2017-09: KRW 65,760.00 per share

- 2017-10: KRW 42,720.00 per share

- 2017-11: KRW 39,480.00 per share

- 2017-12: KRW 36,840.00 per share

- 2018-01: KRW 50,800.00 per share

- 2018-02: KRW 46,160.00 per share

- 2018-03: KRW 40,880.00 per share

- 2018-04: KRW 41,760.00 per share

- 2018-05: KRW 38,000.00 per share

- 2018-06: KRW 37,240.00 per share

- 2018-07: KRW 35,560.00 per share

- 2018-08: KRW 35,320.00 per share

- 2018-09: KRW 21,400.00 per share

- 2018-10: KRW 16,880.00 per share

- 2018-11: KRW 9,080.00 per share

- 2018-12: KRW 5,670.00 per share

- 2019-01: KRW 7,340.00 per share

- 2019-02: KRW 5,980.00 per share

- 2019-03: KRW 5,760.00 per share

- 2019-04: KRW 5,120.00 per share

- 2019-05: KRW 3,925.00 per share

- 2019-06: KRW 3,925.00 per share

- 2019-07: KRW 2,835.00 per share

- 2019-08: KRW 2,465.00 per share

- 2019-09: KRW 2,460.00 per share

- 2019-10: KRW 2,450.00 per share

- 2019-11: KRW 3,405.00 per share

- 2019-12: KRW 3,055.00 per share

- 2020-01: KRW 2,685.00 per share

- 2020-02: KRW 2,190.00 per share

- 2020-03: KRW 1,670.00 per share

- 2020-04: KRW 2,250.00 per share

- 2020-05: KRW 2,260.00 per share

- 2020-06: KRW 2,225.00 per share

- 2020-07: KRW 2,340.00 per share

- 2020-08: KRW 2,225.00 per share

- 2020-09: KRW 4,040.00 per share

- 2020-10: KRW 3,650.00 per share

- 2020-11: KRW 4,340.00 per share

- 2020-12: KRW 3,860.00 per share

- 2021-01: KRW 3,615.00 per share

- 2021-02: KRW 3,150.00 per share

- 2021-03: KRW 4,355.00 per share

- 2021-04: KRW 8,420.00 per share

- 2021-05: KRW 7,100.00 per share

- 2021-06: KRW 8,320.00 per share

- 2021-07: KRW 6,760.00 per share

- 2021-08: KRW 5,640.00 per share

- 2021-09: KRW 5,200.00 per share

- 2021-10: KRW 5,750.00 per share

- 2021-11: KRW 4,055.00 per share

- 2021-12: KRW 4,740.00 per share

- 2022-01: KRW 4,345.00 per share

- 2022-02: KRW 4,860.00 per share

- 2022-03: KRW 4,950.00 per share

- 2022-04: KRW 5,190.00 per share

- 2022-05: KRW 4,610.00 per share

- 2022-06: KRW 4,495.00 per share

- 2022-07: KRW 4,230.00 per share

- 2022-08: KRW 5,010.00 per share

- 2022-09: KRW 3,680.00 per share

- 2022-10: KRW 3,775.00 per share

- 2022-11: KRW 4,805.00 per share

- 2022-12: KRW 7,080.00 per share

- 2023-01: KRW 7,610.00 per share

- 2023-02: KRW 6,680.00 per share

- 2023-03: KRW 6,060.00 per share

- 2023-04: KRW 5,390.00 per share

- 2023-05: KRW 5,520.00 per share

- 2023-06: KRW 7,310.00 per share

- 2023-07: KRW 8,970.00 per share

- 2023-08: KRW 11,340.00 per share

- 2023-09: KRW 9,490.00 per share

- 2023-10: KRW 10,000.00 per share

- 2023-11: KRW 11,880.00 per share

- 2023-12: KRW 11,700.00 per share

- 2024-01: KRW 11,050.00 per share

- 2024-02: KRW 10,540.00 per share

- 2024-03: KRW 11,560.00 per share

- 2024-04: KRW 16,110.00 per share

- 2024-05: KRW 15,230.00 per share

- 2024-06: KRW 18,510.00 per share

- 2024-07: KRW 23,050.00 per share

- 2024-08: KRW 19,380.00 per share

- 2024-09: KRW 19,070.00 per share

- 2024-10: KRW 19,130.00 per share

- 2024-11: KRW 19,730.00 per share

- 2024-12: KRW 24,450.00 per share

- 2025-01: KRW 28,000.00 per share

- 2025-02: KRW 24,550.00 per share

- 2025-03: KRW 26,500.00 per share

- 2025-04: KRW 36,900.00 per share

- 2025-05: KRW 42,700.00 per share

- 2025-06: KRW 50,300.00 per share

- 2025-07: KRW 65,700.00 per share

- 2025-08: KRW 92,000.00 per share

- 2025-09: KRW 82,900.00 per share

- 2025-10: KRW 99,300.00 per share

- 2025-11: KRW 77,500.00 per share

- 2025-12: KRW 89,500.00 per share

- 2026-01: KRW 88,500.00 per share

- 2026-02: KRW 87,300.00 per share

- 2026-03: KRW 68,700.00 per share

- 2026-04: KRW 105,800.00 per share

- 2026-05: KRW 71,100.00 per share

- 2026-06: KRW 58,600.00 per share

- 2026-07: KRW 49,450.00 per share

- 2026-08: KRW 52,100.00 per share

- 2026-09: KRW 48,600.00 per share

- 2026-10: KRW 43,800.00 per share

## Annual estimated value (KRW per share)

- FY2023: low KRW 3,405.54 per share, central KRW 3,576.33 per share, high KRW 3,803.69 per share

- FY2024: low KRW 11,878.22 per share, central KRW 13,035.72 per share, high KRW 14,576.61 per share

- FY2025: low KRW 26,196.33 per share, central KRW 28,461.96 per share, high KRW 31,478.00 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:49:45.852Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.