[Click eStock] "Housing Market and Earnings Turnaround Expected, HDC Hyundai Development Target Price Raised"

Shinhan Investment Corp. maintained a buy rating on HDC Hyundai Development Company on the 23rd, describing it as "a company focused on self-operated projects currently undergoing a performance turnaround. It is the top preferred stock in the construction sector," and raised the target price from 28,000 KRW to 33,000 KRW.

On the same day, Kim Sun-mi, a researcher at Shinhan Investment Corp., stated, "The stock price has risen 65% since the beginning of the year. Although the short-term rapid price increase may be a concern, considering the industry recovery, increasing asset value, differentiated growth through active land investment, and limited investment alternatives, it still holds investment appeal."

She added, "Operating profit recorded 195.3 billion KRW last year, and is expected to be 235.4 billion KRW this year and 306.7 billion KRW next year," and noted, "The recent rise in sale prices benefits companies engaged in self-operated projects where sale price increases translate into implementation profits."

Furthermore, she pointed out, "The Gwangwoon University station area development project is scheduled to begin construction in November and will be put up for sale. Although significant performance contribution is expected in 2026, self-operated project sales of approximately 400 billion KRW based on next year's delivery will drive performance growth."

Currently, the land holdings amount to 1.3 trillion KRW, and the order backlog reflected is 9.5 trillion KRW (Gwangwoon University area accounting for 600 billion KRW and 3.7 trillion KRW, respectively). Researcher Kim analyzed, "While there are no large-scale projects like the Gwangwoon University station area project, considering the large project scale relative to land cost, plans for NPL (Non-Performing Loan) investments, and numerous large quasi-self-operated projects, the performance of self-operated projects is solid."

She also added, "Although administrative sanctions lawsuits are ongoing due to two construction accidents, the high proportion of subcontractor fault limits the possibility of strong sanctions rulings. It will take time until the rulings are finalized."