▶ 12% revenue and 46% operating profit increase YoY 
▶ Resulting from favorable developed & emerging markets and growth of its engine business

HD Hyundai Infracore (CEO: Young-cheul Cho, Seung-hyun Oh) announced its Q1 earnings on Monday, April 24th which recorded a revenue of KRW 1.2878 trillion and operating profit of KRW 152.6 billion. This is a 12% increase in revenue and 46% increase in operating profit compared to the previous year. 

This result is presumed to be based on the favorable markets in developed (NA, EU) and emerging countries while price increase, improved profitability, and the recovery to a two-digit operating profit for the engine business were the main factors for a 45.5% operating profit increase QoQ. This shows that new brand DEVELON launched early this year, is making a quick and soft landing in the global market.

Business performance for the company’s construction equipment business has been bright with increased demand from resource-rich emerging markets such as the Middle East, CIS, and Latin America, resulting in a 25% surge in revenue QoQ. The developed market also saw an increase of 14.3% in revenue with continued demand in infrastructure and rental businesses, along with more orders for various product line-ups. 

The Chinese market dropped in revenue by 52% QoQ with its sluggish market, but total revenue increased, marking a successful diversification of markets. In fact, China’s share in HD Hyundai Infracore’s total revenue reduced from 45.5% in 2020 to 9% this Q1. On the other hand, the market share for developed and emerging countries increased QoQ from 22.7% to 35% and 17% to 56%, respectively.

Demand for generator, off-highway, on-highway, tank engines increased for the Engine Business, reaching KRW 307 billion (35.2%↑) in revenue and KRW 49.4 billion (75.4%↑) YoY. It also its recovered operating profit rate to 16.1% with an increase in product price and volume, and a successful mix of products. <EOD>

■ HD Hyundai Infracore 2023 Q1 Earnings (Unit: KRW 100 million)