HDC Hyundai Development Company’s Earnings Improvement Continues... “Higher Dividends and New Investments Are Key Catalysts”

[Financial News] Hanwha Investment & Securities maintained its Buy rating and target price of 34,000 won for HDC Hyundai Development Company on the ninth, citing the company’s improving earnings trend driven by strong performances from its subsidiaries.
Song Yu-rim, an analyst at Hanwha Investment & Securities, said, “Earnings improvement led by Tongyeong Eco Power and IPARK Hyundai Development Company will be very pronounced in the second half of the year as well.”
Tongyeong Eco Power is expected to post strong results in the third and fourth quarters, benefiting from the summer electricity demand peak and rising System Marginal Price (SMP). The report also projected that high profitability would continue through the fourth quarter as energy prices remain strong. IPARK Hyundai Development Company is expected to see its sales recover in the second half compared with the first half. Results are also expected to improve at other major subsidiaries, including IPARK Mall, HDC HYUNDAI ENGINEERING PLASTICS, HDC Labs and IPARK I&Cons.
Song noted, “It is also necessary to pay attention to new catalysts that could help the stock escape its undervalued phase,” adding, “In the medium to long term, higher dividends are expected based on strong subsidiary earnings, while discussions on new investments for business diversification also appear to be active.”
She continued, “HDC Hyundai Development Company is reviewing various options, including developing data centers on land owned by its subsidiaries and building liquefied natural gas (LNG) terminals. It is also seeking to expand its portfolio by acquiring stakes in new power-generation projects.” She added, “Plans to use and dispose of its treasury shares will likewise be a key point to watch for enhancing corporate value going forward.”
[email protected] Song Min-ji Reporter