Daol Securities "HD Hyundai Marine expands competitiveness through acquisition of Goltense... Target price increases"

(Seoul = Yonhap News) Reporter Kwak Yoon-ah = On the 12th, Daol Investment & Securities [030210] raised the target stock price for HD Hyundai Marine Solution [443060] from 290,000 won to 310,000 won, saying it is expected to expand business competitiveness through the acquisition of global engine maintenance, repair, and operation (MRO) company Goltense. The closing price on the previous trading day (8th) was 219,500 won.

On the 8th, HD Hyundai Marine Solutions announced that it had signed a stock purchase agreement to acquire 100% of Goltense's shares for approximately $247 million (approximately 331.5 billion won). Goltense is a global ship and land power generation engine service specialist and is evaluated as a global top-tier engine MRO company.

Researcher Gwang-sik Choi said, "We are seeking to expand the business area and competitiveness of our main business through our first large-scale M&A (merger and acquisition). The key to this acquisition is to expand the growth base for the AM (aftermarket) business by combining our existing parts and solution supply capabilities with a global field maintenance network."

He added, "Goltense expects a two-way synergy by cross-selling the company's parts, eco-friendly modifications, and digital solutions through distribution channels and providing maintenance services to existing ship and engine customers of HD Korea Shipbuilding & Offshore Engineering [009540]. By supplying parts and maintenance together, we expect to increase customer contact points and increase repeat orders."

According to Daol Investment & Securities, Goltense has 28 service bases in 15 countries.

Researcher Choi said, “In particular, we expect expansion into the non-captive (non-affiliate) ship market through Goltense, which supports engines and equipment from companies outside the HD Hyundai Group. We also present onshore power generation O&M (operation and maintenance) and AI data center power generation facility MRO as new growth axes.”