Haein Reports 8.4 Billion Won Operating Profit for First Half, Up 59% Year-on-Year

Haein's operating profit for the first half of this year increased by 58.7%.

According to Haein on August 18, its sales revenue for the first half of this year reached 104.5 billion won, down 21.2% compared to the same period last year, while operating profit rose by 58.7% to 8.4 billion won.

Gross profit for the first half was 21.3 billion won, up 12.7% year-on-year. The gross profit margin climbed by 6.2 percentage points from 14.2% to 20.4%, and operating profit margin doubled from 4.0% to 8.0%. Selling and administrative expenses came to 12.9 billion won, a decrease of 4.6%.

In the power and energy division, operating profit for the first half was 5.5 billion won, up 62.3% from the previous year, marking the largest improvement among all business segments. This was attributed to the spread of artificial intelligence (AI) data centers, which has driven up demand for emergency generators, a key facility for 24-hour uninterrupted operations. Haein has been supplying Caterpillar emergency generators to major data centers, including those of Kakao and SK, and is also expanding its customer base in the global big tech data center market by delivering emergency generators to data center projects operated by global top-tier cloud service providers A and M.

The customer support division, which is responsible for supplying parts and maintenance for Caterpillar equipment, also contributed to improved profitability. Sales for the first half remained at the same level as in the previous year, while operating profit increased by 13.2% to 2.6 billion won. Given that construction equipment and industrial engines are used for long periods after delivery, the demand for parts replacement and maintenance recurs over time. As more equipment and engines are supplied locally, the foundation for the customer support business continues to expand.

Sales in the marine and special engine division were 22.1 billion won, down from the same period last year. However, the company expects to secure new growth drivers in the second half and beyond, thanks to its defense business capabilities—such as supplying engines for Gumdoksuri-class high-speed patrol boats and the large transport ship Marado—as well as its in-house facilities for disassembling, maintaining, and performance testing large generators and ship engines. Based on these capabilities, Haein is promoting entry into the global navy maintenance, repair, and overhaul (MRO) market, including cooperating with the US Navy on vessel maintenance.

A Haein representative stated, "The power equipment business does not end with supplying equipment; the structure involves long-term maintenance and parts supply," adding, "During the first half, increased sales of power equipment supply and after-sales service translated into improved profitability."

This content was produced with the assistance of AI translation services.