1. The Dividend Announcement: What Happened?

On July 30, 2025, HHI announced a cash dividend of KRW 1,671 per share. The dividend payment date is August 8th. The dividend yield is relatively low at 0.4% based on the current price.

2. Why the Dividend? – Fundamental Analysis

In Q1 2025, HHI recorded strong operating profit growth despite a decline in sales. This is thanks to high shipbuilding prices, a substantial order backlog, and increased orders for eco-friendly engines. This positive performance is interpreted as the background for the dividend decision. Although the debt ratio is high, financial soundness is relatively good considering the net debt ratio and interest coverage ratio.

3. Impact of the Dividend: What’s Next?

This dividend decision is expected to have a minimal impact on the company’s financials and a limited direct impact on the stock price. There is a possibility of a short-term stock price decline after the ex-dividend date, but it is unlikely to have a significant impact in the long term. The key factors are the combined effects of global economic conditions, raw material prices, exchange rates, and geopolitical risks.

4. Investor Action Plan: What Should You Do?

Short-term investors should pay attention to stock price fluctuations after the ex-dividend date. Long-term investors should establish an investment strategy considering future earnings announcements, management strategies, and market conditions. Pay particular attention to global economic conditions and changes in the competitive landscape. While the order backlog and expansion of eco-friendly businesses are positive factors, geopolitical risks and intensifying competition can act as negative factors.