# HSD Engine (082740.KO)

Canonical: https://gigainvestors.com/s/082740.KO

Analysis as of: 2026-10-16T07:40:21.688Z. Financial observations: FY2011–FY2025.

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 36,550.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

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

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 7

- Operating margin variation: 101.01×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.01×

- FY2017: 0.02×

- FY2018: -0.07×

- FY2019: -0.03×

- FY2020: 0.02×

- FY2021: -0.07×

- FY2022: -0.04×

- FY2023: 0.01×

- FY2024: 0.06×

- FY2025: 0.09×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 0.9%

- ROIC, second-lowest year: -7.6%

- Typical minus recent gross margin: -4.5 pp

- Typical gross margin (annual median): 5.1%

- Recent gross margin (lower of latest and 3-year median): 9.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.4%

- ROIC including acquisitions, ten-year median: -1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.4%

- FY2017: 1.3%

- FY2018: -7.6%

- FY2019: -4.3%

- FY2020: 4.2%

- FY2021: -8.6%

- FY2022: -6.4%

- FY2023: 2.1%

- FY2024: 21.2%

- FY2025: 62.5%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 177B

- Net income, five-year total: KRW 172B

- Return on incremental invested capital: 73.5%

- Working capital / revenue, annual change: 1.9 pp

- Working capital / revenue, change between three-year averages: 14.0 pp

- Working capital / revenue, final three-year average: 29.3%

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

- FY2021: 0.85×

- FY2022: 0.88×

- FY2023: 6.23×

- FY2024: 0.97×

- FY2025: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.4% vs 21.2%

- Per-share earnings: -567.11 to 968.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 20.6%

- Market cap gain: KRW 3.50T

- Cumulative retained earnings: KRW 92B

- Diluted shares, 5-year annual growth: 20.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW 2K

- Per-share value, starting three-year median: KRW -567.11

- Per-share value, ending three-year median: KRW 968.00

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 7.0B

- Cumulative net income, 10 years: KRW -73B

- ROIC, first three-year median: 0.4%

- ROIC, last three-year median: 21.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW -6K

- FY2017: KRW -313.84

- FY2018: KRW -567.11

- FY2019: KRW -1K

- FY2020: KRW 183.61

- FY2021: KRW -850.68

- FY2022: KRW -647.46

- FY2023: KRW -6.00

- FY2024: KRW 968.00

- FY2025: KRW 2K

### accounting: pass

- Sloan accruals: -9.2%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.90×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -13.7%

- FY2017: 4.8%

- FY2018: -5.0%

- FY2019: 2.8%

- FY2020: -10.7%

- FY2021: 0.8%

- FY2022: -2.0%

- FY2023: -6.2%

- FY2024: -0.8%

- FY2025: -9.2%

## Holders

## Price story

Down 58% since Apr 2026 · sales +14%

Story as of 2026-10-16T10:00:11.402Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +14%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 803B 

- FY2017: KRW 769B 

- FY2018: KRW 511B 

- FY2019: KRW 674B 

- FY2020: KRW 830B 

- FY2021: KRW 599B 

- FY2022: KRW 764B 

- FY2023: KRW 854B 

- FY2024: KRW 1.20T 

- FY2025: KRW 1.37T 

### Gross margin · FY2025

gross margin 13.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 5.2% 

- FY2017: 7.2% 

- FY2018: 0.4% 

- FY2019: 1.6% 

- FY2020: 6.4% 

- FY2022: 0.3% 

- FY2023: 5.1% 

- FY2024: 9.7% 

- FY2025: 13.5% 

## Owner memo

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

### How it makes money

Operates in specialty industrial machinery; annual sales are KRW 1.4 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2025: revenue 1371057336140; grossProfit 185465252660; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 082740.KO: Hanwha Engine Co., Ltd. manufactures and sells diesel engines worldwide. The company provides low and medium speed marine diesel engines for ocean-going vessels; and diesel/gas engines for electric power generation. It also offers engine parts, including cylinder liners, piston crowns, exhaust valve spindles and housings, pump barrel plungers, piston rings, spindle guides, exhaust valve seats, puncture valves, and main bearings; and warranty, operation and maintenance, technical, installation and commissioning, and preventive services. Hanwha Engine Co., Ltd. was founded in 1983 and is headquartered in Changwon-si, South Korea.

### Why customers stay

Margins ranged from 5.1% to 13.5% during 2023–25; it earns 0.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2023: grossProfit / revenue = 5.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2024: grossProfit / revenue = 9.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2025: grossProfit / revenue = 13.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); 10-year return on capital observations [[2016,0.004352400150283073],[2017,0.012797175875053609],[2018,-0.07587443347380815],[2019,-0.042860097556757466],[2020,0.04159524948710854],[2021,-0.08578461674754459],[2022,-0.06398800744256466],[2023,0.021216612484950145],[2024,0.21157333299492037],[2025,0.6251153309114608]]; median 0.00857478801266834. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 12% of cash earnings on expansion; earns 73.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2017: growth capex 0; upkeep 2884572520; owner earnings 4441088480. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2020: growth capex 0; upkeep 2856192050; owner earnings 21420992270. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2024: growth capex 39178380810; upkeep 15323512000; owner earnings 77059192680. Growth capex / owner earnings = 0.5084193001176923.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); FY2025: growth capex 20666212430; upkeep 18195563000; owner earnings 171822885030. Growth capex / owner earnings = 0.12027625089866063.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); Incremental return on capital 0.7345624649239091, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 34.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 082740.KO SharesStats.PercentInsiders = 34.269 percentage points; cache date 2026-10-16.

### What the price says

The price is 2.2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:40:21.688Z); Closing price 36550 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 16341.892032096994; price multiple 2.23658312808654. FY2025 cash earnings/share 2047.9895054636552. Closing-price date 2026-10-15.

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

- 2016-10: KRW 3,348.06 per share

- 2016-11: KRW 2,883.32 per share

- 2016-12: KRW 3,115.69 per share

- 2017-01: KRW 3,077.75 per share

- 2017-02: KRW 3,044.56 per share

- 2017-03: KRW 3,286.41 per share

- 2017-04: KRW 3,599.41 per share

- 2017-05: KRW 3,784.36 per share

- 2017-06: KRW 4,021.47 per share

- 2017-07: KRW 3,912.40 per share

- 2017-08: KRW 3,974.05 per share

- 2017-09: KRW 3,784.36 per share

- 2017-10: KRW 4,002.50 per share

- 2017-11: KRW 4,723.33 per share

- 2017-12: KRW 3,495.08 per share

- 2018-01: KRW 4,249.10 per share

- 2018-02: KRW 4,083.12 per share

- 2018-03: KRW 5,463.13 per share

- 2018-04: KRW 5,956.33 per share

- 2018-05: KRW 6,781.49 per share

- 2018-06: KRW 3,945.59 per share

- 2018-07: KRW 3,675.28 per share

- 2018-08: KRW 3,585.18 per share

- 2018-09: KRW 4,334.46 per share

- 2018-10: KRW 4,159.00 per share

- 2018-11: KRW 4,372.40 per share

- 2018-12: KRW 5,007.87 per share

- 2019-01: KRW 5,273.44 per share

- 2019-02: KRW 4,453.02 per share

- 2019-03: KRW 4,533.64 per share

- 2019-04: KRW 3,770.13 per share

- 2019-05: KRW 3,575.70 per share

- 2019-06: KRW 3,533.01 per share

- 2019-07: KRW 2,963.94 per share

- 2019-08: KRW 3,148.89 per share

- 2019-09: KRW 3,253.22 per share

- 2019-10: KRW 3,770.13 per share

- 2019-11: KRW 3,936.11 per share

- 2019-12: KRW 4,239.62 per share

- 2020-01: KRW 3,850.75 per share

- 2020-02: KRW 3,357.55 per share

- 2020-03: KRW 2,399.60 per share

- 2020-04: KRW 3,234.25 per share

- 2020-05: KRW 4,282.30 per share

- 2020-06: KRW 4,647.46 per share

- 2020-07: KRW 4,457.76 per share

- 2020-08: KRW 4,661.68 per share

- 2020-09: KRW 4,642.71 per share

- 2020-10: KRW 4,329.72 per share

- 2020-11: KRW 6,459.01 per share

- 2020-12: KRW 7,967.07 per share

- 2021-01: KRW 6,724.58 per share

- 2021-02: KRW 6,392.62 per share

- 2021-03: KRW 8,877.59 per share

- 2021-04: KRW 9,437.18 per share

- 2021-05: KRW 9,911.41 per share

- 2021-06: KRW 9,057.80 per share

- 2021-07: KRW 8,061.91 per share

- 2021-08: KRW 7,151.39 per share

- 2021-09: KRW 7,559.23 per share

- 2021-10: KRW 8,754.29 per share

- 2021-11: KRW 7,037.57 per share

- 2021-12: KRW 7,910.16 per share

- 2022-01: KRW 8,042.94 per share

- 2022-02: KRW 9,010.37 per share

- 2022-03: KRW 8,706.86 per share

- 2022-04: KRW 10,148.52 per share

- 2022-05: KRW 8,280.06 per share

- 2022-06: KRW 9,710.00 per share

- 2022-07: KRW 8,860.00 per share

- 2022-08: KRW 8,690.00 per share

- 2022-09: KRW 7,140.00 per share

- 2022-10: KRW 6,540.00 per share

- 2022-11: KRW 7,510.00 per share

- 2022-12: KRW 7,420.00 per share

- 2023-01: KRW 7,550.00 per share

- 2023-02: KRW 7,810.00 per share

- 2023-03: KRW 7,450.00 per share

- 2023-04: KRW 7,770.00 per share

- 2023-05: KRW 8,740.00 per share

- 2023-06: KRW 10,120.00 per share

- 2023-07: KRW 11,910.00 per share

- 2023-08: KRW 10,790.00 per share

- 2023-09: KRW 8,840.00 per share

- 2023-10: KRW 7,660.00 per share

- 2023-11: KRW 9,880.00 per share

- 2023-12: KRW 9,790.00 per share

- 2024-01: KRW 8,600.00 per share

- 2024-02: KRW 9,110.00 per share

- 2024-03: KRW 9,820.00 per share

- 2024-04: KRW 12,770.00 per share

- 2024-05: KRW 12,520.00 per share

- 2024-06: KRW 15,630.00 per share

- 2024-07: KRW 14,390.00 per share

- 2024-08: KRW 13,830.00 per share

- 2024-09: KRW 13,460.00 per share

- 2024-10: KRW 14,270.00 per share

- 2024-11: KRW 16,110.00 per share

- 2024-12: KRW 18,440.00 per share

- 2025-01: KRW 22,800.00 per share

- 2025-02: KRW 22,650.00 per share

- 2025-03: KRW 21,250.00 per share

- 2025-04: KRW 27,250.00 per share

- 2025-05: KRW 27,800.00 per share

- 2025-06: KRW 28,450.00 per share

- 2025-07: KRW 34,650.00 per share

- 2025-08: KRW 47,500.00 per share

- 2025-09: KRW 44,900.00 per share

- 2025-10: KRW 49,400.00 per share

- 2025-11: KRW 42,200.00 per share

- 2025-12: KRW 42,950.00 per share

- 2026-01: KRW 54,400.00 per share

- 2026-02: KRW 54,000.00 per share

- 2026-03: KRW 43,550.00 per share

- 2026-04: KRW 88,000.00 per share

- 2026-05: KRW 64,200.00 per share

- 2026-06: KRW 51,000.00 per share

- 2026-07: KRW 39,050.00 per share

- 2026-08: KRW 47,450.00 per share

- 2026-09: KRW 49,000.00 per share

- 2026-10: KRW 37,400.00 per share

## Annual estimated value (KRW 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

## 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.