[Click eStock] "HDC Hyundai Development Company, Better Now Than Its 2015 Peak"

On the 2nd, KB Securities analyzed HDC Hyundai Development Company, stating that "the current HDC Hyundai Development Company has better potential than the old Hyundai Development Company at its stock price peak in 2015."

The housing construction project plan for the Kwangwoon University station area has been approved. With the completion of important permits and approvals, HDC Hyundai Development Company plans to open a model house and commence the project in November.

Jang Moon-jun and Kang Min-chang, researchers at KB Securities, analyzed, "The approval of the housing project plan clearly signifies the visibility of construction starting in November and marks the prologue to the company's great leap forward."

They forecast that the commencement of the Kwangwoon University station area project will be a crucial turning point for HDC Hyundai Development Company, leading to substantial profit growth from 2025 and the evolution of its business model as a developer.

The approval of the housing project plan was the last important permit procedure remaining for the commencement of the Kwangwoon University station area project. With this approval, the visibility of the project's construction start and sales in November has become clear. After undergoing excavation and structural safety reviews by the Seoul Metropolitan Government in September, the sales price will be set, followed by construction commencement and model house opening in November. Since Nowon-gu is not subject to the price ceiling regulation for pre-sale prices, it is expected that there will be no significant difficulties in setting the sales price.

As the November construction start approaches, the details of the Kwangwoon University station area project are expected to become more concrete. Currently, the project's scale is known to be a total of 4.5 trillion KRW, but KB Securities estimates the actual scale to be around 5 trillion KRW. This is because the recent upward trend in Seoul apartment pre-sale prices has not yet been reflected in the project scale.

In July, the nearby Jangwi New Town Prugio Radius Park recorded a subscription competition rate of 35.2 to 1 in the first priority round, even with an average pre-sale price of 35.07 million KRW per 3.3㎡, which is expected to influence the final pre-sale price decision for the Kwangwoon University station area project. The actual scale of the entire project is expected to be revealed once the pre-sale price is finalized before construction starts.

KB Securities stated, "It is better now than in 2015," and referred to the Kwangwoon University project as demonstrating the significance of a developer purchasing land at the right time. They provided the rationale that the company's own inventory size and quality are superior to those in 2015, and above all, the timing of the land acquisition is overwhelmingly better. This is also the reason why KB Securities has consistently recommended HDC Hyundai Development Company as the top preferred stock in the industry since resuming coverage in October 2023.