Group 1: Company Performance - HD Korea Shipbuilding & Marine Engineering reported Q2 revenue of 74,284 billion KRW (approximately 5.34 billion USD), a year-on-year increase of 12.3% [2] - The company achieved an operating profit of 9,536 billion KRW (approximately 686 million USD), reflecting a significant year-on-year growth of 153.3% [2] - For the first half of the year, the company recorded total revenue of 142,001 billion KRW (approximately 10.06 billion USD) and an operating profit of 18,128 billion KRW (approximately 1.28 billion USD) [2] Group 2: Business Segments - The shipbuilding segment generated Q2 revenue of 62,549 billion KRW (approximately 4.5 billion USD), with a year-on-year growth of 9.3% and an operating profit of 8,056 billion KRW (approximately 580 million USD), up 104.5% [2][3] - The engine machinery segment saw revenue of 7,740 billion KRW (approximately 557 million USD), a 29.6% increase, and an operating profit of 2,011 billion KRW (approximately 145 million USD), up 120.7% [4] - The offshore equipment segment achieved revenue of 2,479 billion KRW (approximately 178 million USD) and an operating profit of 375 billion KRW (approximately 27 million USD) [5] Group 3: Order Intake and Market Outlook - As of now, the company has secured 82 new ship orders worth 112.2 billion USD, achieving 62.2% of its annual order target of 180.5 billion USD [6] - The overall performance in Q2 indicates a significant improvement in the profitability foundation of the shipbuilding industry, with expectations for continued steady growth in the second half of the year [5][6] - HD Modern Group reported Q2 revenue of 172,111 billion KRW (approximately 12.38 billion USD), with a year-on-year decrease of 2.0%, but an operating profit increase of 29.4% [6][7]

Group 1 - HD Hyundai Heavy Industries announced a contract for the construction of two 2800TEU container ships with a total value of 156.4 billion KRW (approximately 114 million USD) [2] - The new ships will be built at HD Hyundai's Ulsan facility and are scheduled for delivery by the end of 2027 [2] - The contract includes features such as a desulfurization device and a design for future installation of onboard CO2 capture technology [2] Group 2 - Capital Maritime & Trading, owned by Greek shipping magnate Evangelos Marinakis, has ordered a total of 10 ships from HD Hyundai this year, including the latest two [2][3] - HD Hyundai Heavy Industries has secured 82 new ship orders worth 11.22 billion USD (approximately 803 billion RMB) in 2023, achieving 62.2% of its annual order target of 18.05 billion USD (approximately 1300 billion RMB) [3] - The orders include various types of vessels, such as LNG carriers, container ships, and LPG/Ammonia carriers [3] Group 3 - HD Hyundai's Ulsan facility specializes in medium-sized vessels and has a strong position in the global medium-sized container ship market [3] - The company has made significant advancements in eco-friendly ship development, including the delivery of the world's first methanol-powered container ship in 2023 [3] Group 4 - Despite the strong order book, HD Hyundai's Ulsan facility reported an operating loss of 166.2 billion KRW (approximately 125 million USD) in 2023, making it the only subsidiary of HD Hyundai Heavy Industries to incur a loss that year [4] - In 2024, the facility managed to achieve an operating profit of 88.5 billion KRW (approximately 65.2 million USD), but this was significantly lower compared to other subsidiaries [5] - In Q1 2023, the Ulsan facility reported an operating profit of 68.5 billion KRW (approximately 34.8 million RMB), still trailing behind other subsidiaries' profits [5]

Group 1 - The Consumer Price Index (CPI) in June increased by 0.1% year-on-year, ending a four-month decline, while the Producer Price Index (PPI) decreased by 3.6% year-on-year, indicating a mixed price trend in the economy [3][4][16] - The core CPI, excluding food and energy, rose by 0.7% year-on-year, marking a 0.1 percentage point increase from the previous month and reaching a 14-month high, reflecting improvements in supply-demand structures in certain industries [3][17] - The persistent low prices in the market are attributed to an oversupply situation, which could lead to a negative cycle affecting corporate expectations and investment, potentially dragging the economy into a "low inflation trap" [5][18] Group 2 - The decline in PPI is primarily driven by seasonal factors and the construction progress of infrastructure projects, along with an oversupply of raw materials like steel and cement, which has negatively impacted production material prices [4][17] - Key factors contributing to the current supply-demand imbalance include a decline in real estate investment, high tariff barriers affecting exports, and weak consumer income expectations leading to insufficient consumption willingness [4][18] - The overall economic recovery is influenced by a combination of supportive incremental policies and complex external environments, with expectations for CPI to show a trend of low-to-high throughout the year [8][10]

Core Viewpoint - HD Hyundai Heavy Industries has secured a contract for the construction of two 18,000 cubic meter LNG bunkering vessels, valued at approximately 2.706 trillion KRW (around 198 million USD) with a delivery date set for December 2027 [2][3]. Group 1: Contract Details - The contract for the two LNG bunkering vessels amounts to 2.706 trillion KRW (approximately 198 million USD), translating to a unit price of about 99 million USD per vessel [2]. - The vessels will be constructed at HD Hyundai's Ulsan facility and are part of a larger trend, as the company has received a total of 55 new ship orders worth 6.7 trillion KRW (approximately 4.81 billion RMB) this year [2][3]. - The latest contract follows a previous agreement with Greek shipowner Evalend Shipping for four similar vessels, totaling 538.3 billion KRW (approximately 3.71 million USD) [3]. Group 2: Industry Context - The global demand for LNG bunkering vessels is expected to grow significantly, with the number of ships using LNG as fuel projected to increase from 472 in 2023 to 1,174 by 2033, marking a 149% growth [4]. - The annual consumption of LNG for bunkering is anticipated to reach 15 million tons by 2028, representing a 4.7-fold increase from 2023 [4]. - LNG bunkering vessels are considered high-value, high-tech assets that play a crucial role in the LNG supply chain, providing significant advantages over traditional bunkering methods [3]. Group 3: Company Achievements - HD Hyundai Heavy Industries' Ulsan facility is recognized as the leading shipyard for LNG bunkering vessels, having delivered several notable ships since 2016, including the largest LNG bunkering vessel at the time, "Kairos" [5]. - The "K.LOTUS" vessel, delivered in 2022, was recognized in the RINA's "Significant Ships of 2022" list, highlighting the company's reputation for quality and innovation in shipbuilding [6].

Group 1 - HD Hyundai Heavy Industries announced a contract for the construction of two Suezmax oil tankers with a total value of 251.1 billion KRW (approximately 180 million USD) [2] - The unit price for each tanker is approximately 90 million USD, which has increased by 2 million USD compared to a previous contract due to the appreciation of the Korean won against the US dollar [2] - The company has secured a total of 53 new ship orders worth 6.49 billion USD (approximately 47.2 billion RMB) this year, achieving about 36% of its annual order target of 18.05 billion USD (approximately 132 billion RMB) [3] Group 2 - The global oil tanker market is expected to strengthen by 2025, with a projected 2.7% increase in global seaborne oil trade volume [3] - The demand for oil tanker capacity is anticipated to grow by 3.2% due to factors such as increased oil exports from the Atlantic region to Asia and ongoing shipping reroutes caused by geopolitical events [3] - HD Hyundai Heavy Industries has extensive experience in building oil tankers, with its Suezmax tankers recognized as "world-class products" in South Korea since 2007 [3]

Core Viewpoint - HD Hyundai Heavy Industries has secured contracts for the construction of two medium-sized LPG/ammonia carriers, indicating a strong demand for this vessel type and the company's competitive position in the market [2][3][4]. Group 1: Contract Details - The contracts involve two medium-sized LPG/ammonia carriers with a total value of 212.2 billion KRW (approximately 153.4 million USD) [2]. - The vessels will be built at HD Hyundai's Ulsan facility and are scheduled for delivery by the end of 2027 [2]. - The unit price for each vessel is 76.7 million USD, which is lower than previous contracts for similar vessels [3]. Group 2: Market Position and Performance - HD Hyundai Heavy Industries has secured a total of 51 new ship orders worth 6.31 billion USD in 2023, achieving 35% of its annual target of 18.05 billion USD [3][5]. - The company leads the global market in the construction of medium-sized LPG/ammonia carriers, with a significant share of the new orders [4]. - The company’s profitability is under pressure, with operating profits significantly lower than its sister companies, indicating a need for increased order volume and efficiency [5]. Group 3: Industry Outlook - The global demand for LPG is expected to grow, driven by the transition to cleaner energy sources and environmental regulations [4]. - The aging fleet of medium-sized LPG/ammonia carriers presents an opportunity for new orders, as 35% of the fleet will be over 15 years old by 2024 [4]. - The trend of increasing orders for medium-sized LPG/ammonia carriers is anticipated to continue, benefiting HD Hyundai Heavy Industries [5].

Group 1 - HD Hyundai Heavy Industries announced contracts for the construction of 2 ultra-large container ships with a total value of 559.6 billion KRW (approximately 3.9 million USD) [2] - The ships will be built at HD Hyundai's facility in Jeollanam-do and are scheduled for delivery in the first half of 2028 [2] - The orders are reportedly from Wan Hai Lines, Taiwan's third-largest shipping company, as part of a previous agreement for 4 similar vessels [2] Group 2 - In addition to the recent orders, HD Hyundai Heavy Industries has secured a total of 31 new ship orders worth 4.89 billion USD in 2023, achieving 27.1% of its annual target of 18.05 billion USD [3] - The company has seen a resurgence in container ship demand, with a total of 28 container ship orders worth 4.5 billion USD secured in the second half of last year [3] - As of this year, over 50% of the container ships ordered by HD Hyundai Heavy Industries are accounted for by 16 vessels [3]