1. What Happened? Analyzing the After-Hours Block Deal

After the market closed on September 16, 2025, a significant block deal involving 3 million shares of HJ Heavy Industries (approximately ₩99.2 billion) occurred. Foreign investors purchased around ₩97.7 billion, while other corporations sold about ₩90 billion. This large-scale transaction has captured the attention of market participants.

2. Why Did This Happen? Background and Fundamental Analysis

Despite a decrease in sales, HJ Heavy Industries demonstrated improved operating and net profits in the first half of 2025. Positive factors include the anticipated growth in the specialized vessel and merchant ship markets within the shipbuilding sector, as well as the company’s diversification strategy in overseas construction markets. However, persistent sales decline in the construction sector and a high debt-to-equity ratio remain risk factors.

3. What’s Next? Short-Term and Long-Term Impact Analysis

While foreign investors’ substantial buying can be interpreted as a positive signal, the considerable volume of shares sold by other corporations raises the potential for increased short-term stock price volatility. In the long term, close attention should be paid to HJ Heavy Industries’ fundamental improvements and macroeconomic factors like exchange rates, interest rates, commodity prices, and shipping indices. The slowdown in the shipping industry, in particular, could negatively impact performance in the merchant vessel segment.

4. What Should Investors Do? Investment Strategy

  • Short-Term Strategy: Monitor stock price movements and trading volume closely, and proceed with caution.
  • Long-Term Strategy: Keep track of order intake in the second half of 2025, particularly orders for high-value-added vessels in the shipbuilding segment and new large-scale projects in the construction sector. Continuously analyze the impact of fluctuations in interest and exchange rates on the company’s financial soundness to formulate your investment strategy.

*This report is for informational purposes only, and investment decisions are the sole responsibility of the investor.*