Here are the latest news from Daehan Shipbuilding.
- Admin
- 09-24-2025
[2025.03.28] DHshipbuilding Achieves a “Quantum Leap” in Performance Through Management Innovation
DHshipbuilding Achieves a
“Quantum Leap” in Performance Through Management Innovation
- Operating profit surges 340% in 2024 compared to the previous year, outpacing sales growth more than tenfold (32% vs. 340%)
- Operating profit rises 48-fold in just two years, with further growth expected in 2025
- Company transforms into a resilient player, breaking free from shipbuilding’s cyclical constraints through “New Management Practices.”
Amid a booming shipbuilding super-cycle across the Korean industry, DHshipbuilding’s exceptional performance has become a focal point in the market. The company achieved a 340% year-on-year increase in operating profit in 2024—the highest among domestic shipbuilders—showcasing an unmatched pace of improvement.
On the 28th, DHshipbuilding disclosed its 2024 financial results through the Financial Supervisory Service’s DART system. Revenue reached KRW 1.0746 trillion, up 32% from KRW 816.4 billion in 2023. Operating profit soared to KRW 158.2 billion, compared to KRW 35.9 billion in the previous year.
The debt ratio dropped significantly from 374% in 2023 to 198% in 2024. Compared to 2022, when operating profit was only KRW 3.3 billion, the figure represents a 48-fold increase in just two years.
Financial Highlights (KRW 100 million)
| Category | 2024 | 2023 | 2022 |
|---|---|---|---|
| Revenue | 10,746 | 8,164 | 6,937 |
| Operating Profit | 1,582 | 359 | 33 |
| Margin (%) | 14.7% | 4.4% | 0.5% |
| Net Income | 1,723 | 383 | -104 |
| Margin (%) | 16.0% | 4.7% | -1.5% |
| Total Assets | 13,490 | 8,129 | 8,432 |
| Liabilities | 8,959 | 6,414 | 7,082 |
| Equity | 4,531 | 1,715 | 1,350 |
| Debt Ratio | 198% | 374% | 525% |
Source: Financial Supervisory Service DART
The market reaction has been strong. While analysts expected DHshipbuilding to remain profitable, the operating margin of nearly 15% exceeded expectations. It is the highest among domestic shipbuilders and represents a level rarely seen even during the 2007 shipbuilding super-cycle.
A market observer noted that DHshipbuilding’s early resolution of low-priced orders, compared with major shipbuilders, combined with revenue recognition from high-value eco-friendly vessels, fueled its rapid profit growth. Internally, the introduction of “New Management Practices” after KHI’s acquisition in September 2022 was key. By focusing on profitability, DHshipbuilding pursued selective, high-margin orders while enhancing cost competitiveness.
Automation investments and in-house block production boosted productivity, while close monitoring of equipment utilization and energy use significantly reduced inefficiencies. The company strengthened its fundamentals to withstand external risks such as fluctuating ship prices and steel costs, fulfilling its initial goal under KHI ownership of building a resilient and sustainable business model.
Financial support also played a critical role. Executive Director Lee Seok-moon, Head of Management Support, stated:
“Every time we secured orders, the Financial Services Commission, the Korea Development Bank, and commercial banks provided timely refund guarantees (RGs), laying the foundation for our performance improvements. We will repay this trust with even stronger results.”
On January 24, Financial Services Commission Chairman Kim Byung-hwan and Korea Development Bank Chairman Kang Seok-hoon, along with more than 20 government and financial sector officials, visited DHshipbuilding’s Haenam yard to encourage employees.
Looking ahead, DHshipbuilding expects further growth in 2025.
By continuing to implement “New Management Practices” and accelerating cost innovation, the company anticipates additional increases in both revenue and operating profit.