# Hyosung Heavy Industries (298040.KO)

Canonical: https://gigainvestors.com/s/298040.KO

Analysis as of: 2026-10-16T07:35:20.174Z. Financial observations: FY2018–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

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

Share price: KRW 1,821,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 328,687.14 per share, central KRW 366,488.38 per share, high KRW 416,809.85 per share. Buy at or below the central value KRW 366,488.38 per share. Valuation as of 2026-10-16T07:35:20.174Z; scenarios are not confidence intervals.

Expected annual return: 4.2% at the stated quote. About 4.2% 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

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.66×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.03×

- FY2019: 0.03×

- FY2020: 0.02×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.06×

- FY2024: 0.07×

- FY2025: 0.12×

- LTM to Jun 2026: 0.14×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 4.5%

- ROIC, second-lowest year: 2.3%

- Typical minus recent gross margin: -3.0 pp

- Typical gross margin (annual median): 13.2%

- Recent gross margin (lower of latest and 3-year median): 16.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.3%

- ROIC including acquisitions, ten-year median: 2.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 2.3%

- FY2019: 3.7%

- FY2020: 1.8%

- FY2021: 4.9%

- FY2022: 4.1%

- FY2023: 12.1%

- FY2024: 12.1%

- FY2025: 20.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 969B

- Net income, five-year total: KRW 926B

- Return on incremental invested capital: 47.4%

- Working capital / revenue, annual change: -1.4 pp

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

- FY2021: 1.31×

- FY2022: 0.87×

- FY2023: 1.35×

- FY2024: 0.98×

- FY2025: 0.98×

### 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: 2.3% vs 12.1%

- Per-share earnings: 252.24 to 23909.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: KRW 16.27T

- Cumulative retained earnings: KRW 833B

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 148.5%

- Per-share value change: KRW 24K

- Per-share value, starting three-year median: KRW 252.24

- Per-share value, ending three-year median: KRW 24K

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.1%

- Buyback history: 3 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 2.3%

- ROIC, last three-year median: 12.1%

Chart: Earnings per share; fiscal year observations.

- FY2018: KRW 252.24

- FY2019: KRW 1K

- FY2020: KRW -2K

- FY2021: KRW 6K

- FY2022: KRW 1K

- FY2023: KRW 12K

- FY2024: KRW 24K

- FY2025: KRW 56K

### accounting: pass

- Sloan accruals: 0.4%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.95×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -0.1%

- FY2019: -1.6%

- FY2020: -11.0%

- FY2021: -1.3%

- FY2022: 1.6%

- FY2023: -9.9%

- FY2024: -3.0%

- FY2025: 0.4%

## Holders

## Price story

Down 53% since Apr 2026 · sales +7.4%

Story as of 2026-10-16T10:00:04.542Z; price observation 2026-10-15.

Price needs cash profits to grow 23.2% a year for ten years

### Sales · FY2025–2026

sales +7.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: KRW 2.18T 

- FY2019: KRW 3.78T 

- FY2020: KRW 2.98T 

- FY2021: KRW 3.09T 

- FY2022: KRW 3.51T 

- FY2023: KRW 4.30T 

- FY2024: KRW 4.89T 

- FY2025: KRW 5.97T 

- FY2026: KRW 6.41T 

### Gross margin · FY2025

gross margin 21%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: 11.0% 

- FY2019: 10.4% 

- FY2020: 13.3% 

- FY2021: 13.1% 

- FY2022: 12.4% 

- FY2023: 14.8% 

- FY2024: 16.2% 

- FY2025: 21.0% 

## Owner memo

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

### How it makes money

Operates in electrical equipment & parts; annual sales are KRW 6 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2025: revenue 5968511616600; grossProfit 1252651568400; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 298040.KO: Hyosung Heavy Industries Corporation manufactures and sells heavy electrical equipment in South Korea. The company offers transmission and distribution products, such as power, oil-immersed distribution, cast-resin, and special transformers; shunt reactors, high voltage switchgears, medium/ low voltage switchgears, and high voltage direct current transmission systems; STATCOM, a power electronic based device to enhance the power system stability and quality; and turnkey solutions. It also provides system and engineering solutions, including condition monitoring systems; asset health management, power system maintenance, power automation, and process automation solutions; and renewable energy products comprising energy storage systems, solar inverters, and wind turbines, as well as engineering, procurement, and construction services for solar energy projects. In addition, the company offers high and low voltage motors, DC motors, general industrial and special-purpose motors, commercial generators, and emergency power generators; chemical equipment, filling stations, and industrial gas supplying systems; gear boxes, motors, and special gear units; and ARC, resistance, and special spot welding machines. Further, it undertakes various construction projects, including housing, redevelopment and reconstruction, business and commercial facilities, civil engineering and environment, and SOC. Additionally, the company provides power conditioning systems and power management systems. It also exports its products to North and Central America, Europe, Asia, and internationally. Hyosung Heavy Industries Corporation was founded in 1962 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 14.8% to 21% during 2023–25; it earns 4.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2023: grossProfit / revenue = 14.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2024: grossProfit / revenue = 16.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2025: grossProfit / revenue = 21%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); 8-year return on capital observations [[2018,0.02260982198185968],[2019,0.03703114723330601],[2020,0.018128291779713465],[2021,0.049444410681646817],[2022,0.04050099881095376],[2023,0.12076903719167159],[2024,0.12055041300505637],[2025,0.20143389208014426]]; median 0.04497270474630029. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 18.1% of cash earnings on expansion; earns 47.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2019: growth capex 367020775910; upkeep 70920000000; owner earnings 10105227510. Growth capex / owner earnings = 36.319892406855864.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2021: growth capex 0; upkeep 49342949810; owner earnings 75454416650. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2022: growth capex 11806062060; upkeep 82253000000; owner earnings 8900925419.926174. Growth capex / owner earnings = 1.3263859096684716.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2023: growth capex 0; upkeep 35329319460; owner earnings 156648327630.2262. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2024: growth capex 25758778870; upkeep 72867000000; owner earnings 218030914540. Growth capex / owner earnings = 0.1181427822946378.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); FY2025: growth capex 92550692340; upkeep 85960000000; owner earnings 510183915250. Growth capex / owner earnings = 0.18140652728075202.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); Incremental return on capital 0.47366536012936467, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); Dividend observations: [[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2024,23279352500],[2025,46558705000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 44% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 298040.KO SharesStats.PercentInsiders = 43.994 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.174Z); Ten-year compound average after fade. Initial solved rate 0.32478447760606965. Price 1821000; 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)

- 2018-07: KRW 52,900.00 per share

- 2018-08: KRW 59,200.00 per share

- 2018-09: KRW 59,400.00 per share

- 2018-10: KRW 42,350.00 per share

- 2018-11: KRW 45,400.00 per share

- 2018-12: KRW 41,350.00 per share

- 2019-01: KRW 45,350.00 per share

- 2019-02: KRW 44,000.00 per share

- 2019-03: KRW 39,600.00 per share

- 2019-04: KRW 39,800.00 per share

- 2019-05: KRW 33,350.00 per share

- 2019-06: KRW 33,600.00 per share

- 2019-07: KRW 34,750.00 per share

- 2019-08: KRW 35,400.00 per share

- 2019-09: KRW 31,450.00 per share

- 2019-10: KRW 28,300.00 per share

- 2019-11: KRW 25,350.00 per share

- 2019-12: KRW 26,650.00 per share

- 2020-01: KRW 22,550.00 per share

- 2020-02: KRW 19,750.00 per share

- 2020-03: KRW 12,900.00 per share

- 2020-04: KRW 18,000.00 per share

- 2020-05: KRW 17,250.00 per share

- 2020-06: KRW 28,900.00 per share

- 2020-07: KRW 43,400.00 per share

- 2020-08: KRW 44,100.00 per share

- 2020-09: KRW 56,500.00 per share

- 2020-10: KRW 58,900.00 per share

- 2020-11: KRW 62,000.00 per share

- 2020-12: KRW 62,200.00 per share

- 2021-01: KRW 66,900.00 per share

- 2021-02: KRW 72,400.00 per share

- 2021-03: KRW 78,400.00 per share

- 2021-04: KRW 70,100.00 per share

- 2021-05: KRW 71,100.00 per share

- 2021-06: KRW 73,000.00 per share

- 2021-07: KRW 78,300.00 per share

- 2021-08: KRW 82,000.00 per share

- 2021-09: KRW 77,200.00 per share

- 2021-10: KRW 67,500.00 per share

- 2021-11: KRW 59,700.00 per share

- 2021-12: KRW 58,300.00 per share

- 2022-01: KRW 52,500.00 per share

- 2022-02: KRW 55,800.00 per share

- 2022-03: KRW 61,200.00 per share

- 2022-04: KRW 55,800.00 per share

- 2022-05: KRW 62,300.00 per share

- 2022-06: KRW 63,000.00 per share

- 2022-07: KRW 60,000.00 per share

- 2022-08: KRW 73,900.00 per share

- 2022-09: KRW 59,500.00 per share

- 2022-10: KRW 57,400.00 per share

- 2022-11: KRW 84,700.00 per share

- 2022-12: KRW 78,000.00 per share

- 2023-01: KRW 71,800.00 per share

- 2023-02: KRW 71,100.00 per share

- 2023-03: KRW 66,700.00 per share

- 2023-04: KRW 78,500.00 per share

- 2023-05: KRW 80,000.00 per share

- 2023-06: KRW 114,900.00 per share

- 2023-07: KRW 174,500.00 per share

- 2023-08: KRW 200,500.00 per share

- 2023-09: KRW 170,000.00 per share

- 2023-10: KRW 170,700.00 per share

- 2023-11: KRW 210,000.00 per share

- 2023-12: KRW 161,900.00 per share

- 2024-01: KRW 171,800.00 per share

- 2024-02: KRW 192,400.00 per share

- 2024-03: KRW 284,000.00 per share

- 2024-04: KRW 313,000.00 per share

- 2024-05: KRW 442,000.00 per share

- 2024-06: KRW 346,000.00 per share

- 2024-07: KRW 311,000.00 per share

- 2024-08: KRW 289,500.00 per share

- 2024-09: KRW 348,500.00 per share

- 2024-10: KRW 401,000.00 per share

- 2024-11: KRW 403,500.00 per share

- 2024-12: KRW 393,000.00 per share

- 2025-01: KRW 448,500.00 per share

- 2025-02: KRW 432,500.00 per share

- 2025-03: KRW 428,500.00 per share

- 2025-04: KRW 489,500.00 per share

- 2025-05: KRW 619,000.00 per share

- 2025-06: KRW 891,000.00 per share

- 2025-07: KRW 1,226,000.00 per share

- 2025-08: KRW 1,240,000.00 per share

- 2025-09: KRW 1,340,000.00 per share

- 2025-10: KRW 2,135,000.00 per share

- 2025-11: KRW 1,901,000.00 per share

- 2025-12: KRW 1,781,000.00 per share

- 2026-01: KRW 2,603,000.00 per share

- 2026-02: KRW 2,823,000.00 per share

- 2026-03: KRW 2,456,000.00 per share

- 2026-04: KRW 3,912,000.00 per share

- 2026-05: KRW 3,685,000.00 per share

- 2026-06: KRW 3,438,000.00 per share

- 2026-07: KRW 2,417,000.00 per share

- 2026-08: KRW 2,963,000.00 per share

- 2026-09: KRW 2,773,000.00 per share

- 2026-10: KRW 2,152,000.00 per share

## Annual estimated value (KRW per share)

- FY2022: low KRW 16,235.29 per share, central KRW 17,675.77 per share, high KRW 19,593.35 per share

- FY2023: low KRW 13,489.53 per share, central KRW 15,349.44 per share, high KRW 17,825.38 per share

- FY2024: low KRW 157,779.18 per share, central KRW 177,095.04 per share, high KRW 202,808.54 per share

- FY2025: low KRW 269,264.75 per share, central KRW 304,449.92 per share, high KRW 351,288.85 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.