▶ The company recorded KRW 3.825 trillion won in annual revenue and KRW 257.2 billion in operating profit for 2023.
▶ Adopting market-customized strategies to drive profitability ... Setting a revenue goal of KRW 4 trillion for this year.
▶ Implementing a combination of cash dividends, share buybacks, and cancellations, posting a 40% payout ratio.
▶ “Continue to achieve robust growth by expanding sales competitiveness and introducing eco-friendly products”
HD Hyundai Construction Equipment (CEO Cheol-gon Choi), a subsidiary of HD Hyundai's Construction Equipment business sector, released its annual performance including the fourth quarter of 2023 through a public disclosure on February 6.
HD Hyundai Construction Equipment's revenue in 2023 grew 8.8% to KRW 3.285 trillion with operating profit surging 50.8% to KRW 257.2 billion compared to the previous year.
The fourth-quarter results showed sales of KRW 845.9 billion and operating profit of KRW 26.8 billion, both increasing compared to the same quarter of the previous year.
Steady repayment of debt has also improved financial soundness. In 2023, the debt-to-equity ratio was reduced to 45%, with the debt ratio falling to a double-digit figure of 86%.
HD Hyundai Construction Equipment attributed its strong performance to several factors including increased infrastructure investment in developed markets, sustained resource development demand in emerging markets, and reduced fixed costs and price increases driven by revenue growth.
A regional breakdown reveals that the North American market—which generated revenue of KRW 1 trillion last year—accounted for over a quarter of global sales. This strong performance offset declines in the Chinese and domestic markets where demand recovery has been slow due to economic downturns and slump in the construction sector. Sales in Central and South America and emerging markets particularly Brazil, India, Middle East, and Africa surged as demand for mining construction equipment grew, also boosting the company's strong results.
HD Hyundai Construction Equipment announced ambitious targets of KRW 4.012 trillion in sales and KRW 263.8 billion in operating profit for 2024. The company intends to focus on enhancing profitability by implementing sales strategies centered on advanced and emerging markets, expanding the compact product line, and broadening the large-scale equipment lineup.
HD Hyundai Construction Equipment announced at its board meeting that it will distribute cash dividend of KRW 700 per common share for 2023. The total dividend payout is approximately KRW 12.7 billion.
The company is not only paying cash dividends but also buying back and canceling its own shares to boost shareholder value. HD Hyundai Construction Equipment has decided to repurchase and cancel a total of 1.44 million shares of its own stock, including approximately 850,000 shares acquired as a result of the exercise of stock purchase rights related to the acquisition of the industrial vehicle business and additional 590,000 shares worth approximately KRW 30.3 billion.
The repurchased shares account for approximately 7.3% of the total number of issued stocks. By implementing a dividend payout ratio of around 40%—which is 10% higher than the previous year's payout—HD Hyundai Construction Equipment aims to strengthen shareholder confidence further and enhance corporate value.
HD Hyundai Construction Equipment officials expressed confidence in maintaining the company's strong growth momentum this year, citing proactive measures to address market risks and business strategies aimed at expanding market share. They also stressed the importance of strengthening product lineups in key regions and introducing eco-friendly products that lead the market, while maximizing shareholder value through shared growth initiatives.
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