现代工程建设公司（000720 KS）买入非交易路演要点-对交付的信心

Issuer of report:The Hongkong and ShanghaiBanking Corporation Limited, Seoul SecuritiesBranchView HSBC Global Research at:https://www.research.hsbc.comListen to our insightsHSBC Global Research PodcastsMAINTAIN BUYTARGET PRICE(KRW)93,000SHARE PRICE(KRW)68,800(as of04 Jun 2025)MARKET DATAMarket cap(KRWb)Market cap (USDm)3m ADTV (USDm)FINANCIALS AND RATIOS(KRW)Year toHSBC EPSHSBC EPS (prev)Change (%)Consensus EPSPE (x)Dividend yield (%)EV/EBITDA (x)ROE (%)52-WEEK PRICE(KRW)Source:LSEGIBES, HSBC estimatesYushin Park*Analyst, Korea Industrials & UtilitiesThe Hongkong and Shanghai Banking CorporationLimited, Seoul Securities Branchyushin.park@kr.hsbc.com+82 2 3706 8756* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and isnot registered/ qualified pursuant to FINRA regulationsEquitiesConstruction & EngineeringKorea06/24Target price: 93000.00High: 66900.00 Low: 24100.00 Current: 68800.00 Find out morePREVIOUS TARGET(KRW)93,000UPSIDE/DOWNSIDE+35.2%7,661Free float5,557BBG000720 KS33RIC000720.KS12/2024a12/2025e12/2026e12/2027e-1500.425871.427641.959045.81-1500.425871.427641.959045.810.00.00.04111.045402.726693.967023.92nm11.79.00.91.21.2nm4.02.4-2.17.99.615000.0062500.00110000.0012/2406/25 ◆◆◆ 65%0.07.61.21.510.3 2Financial statementsYear to12/2024a12/2025e12/2026eProfit & loss summary(KRWb)Revenue32,67030,71431,649EBITDA-1,0421,2771,673Depreciation & amortisation-221-258-282Operating profit/EBIT-1,2631,0181,391Net interest11699108PBT-9861,1751,578HSBC PBT-9861,1751,578Taxation219-282-379Net profit-169660859HSBC net profit-169660859Cash flow summary(KRWb)Cash flow from operations-119-5351,294Capex-179-200-200Cash flow from investment21218-155Dividends-67-90-90Change in net debt17593-1,053FCF equity-298-7351,094Balance sheet summary(KRWb)Intangible fixed assets751749747Tangible fixed assets1,2891,2331,153Current assets21,09021,14422,702Cash & others5,1304,5385,591Total assets26,99526,93228,436Operating liabilities13,43512,60412,982Gross debt3,3163,3163,316Net debt-1,815-1,222-2,275Shareholders' funds8,0258,5959,365Invested capital4,5645,9846,029Ratio, growth and per share analysisYear to12/2024a12/2025e12/2026eY-o-y % changeRevenue10.2-6.03.0EBITDA-206.231.1Operating profit-260.936.6PBT-204.934.4HSBC EPS-131.530.2Ratios (%)Revenue/IC (x)6.25.85.3ROIC-18.414.717.6ROE-2.17.99.6ROA-3.72.73.7EBITDA margin-3.24.25.3Operating profit margin-3.93.34.4EBITDA/net interest (x)9.0Netdebt/equity-18.8-11.7-19.6Net debt/EBITDA (x)1.7-1.0-1.4CF from operations/net debtPer share data(KRW)EPS Rep (diluted)-1500.425871.427641.95HSBC EPS (diluted)-1500.425871.427641.95DPS600.00800.00800.00Book value71393.8076465.2383307.18Financials & valuation:Hyundai E&C Nuclear projects driving growth in the coming yearsExhibit2:Nuclear power plant market sizeoutlookSource: Company data, IAEA, WNA,BloombergExhibit4:USdata centre: projectedelectricitygrowthSource: EPRI 2024.NB. Projections assume all non-data centre load increases at 1% annually01,0002,0003,0004,0005,0006,000203520402050Nuclear market size(USDbn)Exhibit1:Upcoming nuclear power plant projects202520262027Large scalenuclearpowerplantBulgaria contract (Dec)SaudiSloveniaSweden preferred bidderselection (Dec)KazakhstanSouth AfricaUAETürkiyeRomania Cernavoda 3&4SMRUK GBN SMR techselection (June)Pilot for next generationnuclearUkraine SMRUS Oystercreek 1&2US Palisades contract(Dec)MSR concept designcompletionUS Dominion SMR techselection (2Q)Source: Company data, HSBC Exhibit9:35% global market share duringthe past 10 years (8 out of 25 units)Source: Company dataHyundaiE&C35%Others65%Hyundai E&COthers Unwavering position in theredevelopment marketProportion of low-marginprojects to phase out CEO Investor Day key financial targetsExhibit16:Hyundai E&C–2030 financial targets(unit: KRWtrn)HDEC (standalone)New orderSalesOPMConsolidatedNew orderSalesOPMSource: Company dataExhibit17:Hyundai E&C–shareholder return policyPeriodShareholder return policy2016-2024DPS of KRW600, payout ratio of 20~30%2025-2027TSR of +25%; minimum DPS ofKRW800Source: Company dataExhibit18:Hyundai E&C standalone salestarget–core products and energy toaccount for c70%of revenue by 2030eExhibit19:Hyundai E&C standalone OPtarget–core products and energy toaccount for c75%of OP by 2030eSource: Company dataand targets, HSBCSource: Company dataand targets, HSBCExhibit20:Hyundai E&C–urbandevelopment and complex developmentsales targetExhibit21:Hyundai E&C–Energy divisionsales target(nuclearaccountingfor c64%of energy division revenue)Source: Company dataand targets, HSBCSource: Company dataand targets, HSBC0510152025302025e2030eEnergyCore ProductsOthers(KRWtrn)00.511.522.5(KRWtrn)0123456782025e2030eUrban DevelopmentComplex Development(KRWtrn)0123456(KRWtrn) Nuclear division revenue forecasts and valuationWelookat historical cases of nuclear power plant revenue recognition to forecast the salestrendsfor Hyundai E&C’s nuclear revenue going forward.Exhibit30:Revenuerecognitionfrom UAEBaraka (Hyundai E&C + Sams