HD Hyundai Marine Solution (443060.KS), a comprehensive marine industry solutions provider under HD Hyundai (267250.KS), reported first-quarter operating profit of 93.4 billion won ($68 million), up 12.5% from a year earlier, the company said in a preliminary earnings disclosure Wednesday.
Revenue rose 18.3% year-on-year to 574.6 billion won.
HD Hyundai Marine Solution attributed the strong results to growth in its core aftermarket (AM) business, which covers ship parts and services, combined with expanded sales from its bunkering business.
The AM division's revenue rose 21.4% year-on-year, driven by large engines and the mid-sized "HiMSEN engine," along with new orders including a power generation facility maintenance contract with Ecuador's state-owned electric utility.
Revenue in the digital solutions division jumped 33.3% year-on-year on a diversified product lineup, including the integrated control system (ECS) applied to U.S. defense firm Anduril's unmanned surface vessels.
Revenue in the eco-friendly solutions division, however, declined due to a base effect from large-scale retrofit projects in the same period last year.
HD Hyundai Marine Solution is strengthening its supply chain competitiveness by establishing a "global logistics hub" in Singapore. By adding the Singapore base to its existing Busan logistics hub, the company has completed a "Busan-Singapore dual hub" system, aiming to enhance its AM business competitiveness through a strategic location near the Strait of Malacca.
The Singapore hub spans 17,000 square meters and maintains a permanent inventory of more than 10,000 core parts. Based on inventory operations reflecting customer demand data, the company has built a supply chain connecting about 200 shipping companies and more than 600 ports worldwide. Through this network, the company plans to shorten parts supply lead times by up to 16 days and reduce transportation costs by as much as 38%.
"We plan to further strengthen the competitiveness of our high-value-added AM businesses such as engines, and advance our portfolio by expanding eco-friendly and digital businesses," an HD Hyundai Marine Solution official said. "The opening of the Singapore logistics hub will serve as a catalyst for improving global supply chain efficiency and further enhancing customer responsiveness."
