[Featured Stock] HDC Hyundai Development Company Surpasses 20,000 Won... Soars on Profitability Improvement Expectations

Decrease in Q3 Operating Profit Due to Increased Administrative Expenses
Sharp Rise in In-House Housing Sales Expected from Q4
Cost Ratio Improvement Anticipated with Expansion of In-House Business

HDC Hyundai Development Company recovered the 20,000 KRW level after 9 trading days. Although the third-quarter performance was sluggish, expectations for future profitability improvement seem to be reflected in the stock price.

As of 11 a.m. on the 25th, HDC Hyundai Development Company is trading at 20,400 KRW, up 5.26% (1,020 KRW) from the previous trading day. This marks the first time in 9 trading days since the 12th that HDC Hyundai Development Company's stock price has recovered the 20,000 KRW level.

HDC Hyundai Development Company’s third-quarter operating profit was preliminarily estimated at 47.453 billion KRW, down 23.5% year-on-year. Sales increased by 5.4% year-on-year to 1.0086 trillion KRW, but net profit fell 47.3% year-on-year to 32.697 billion KRW. The general construction division recorded a loss due to completion losses in the knowledge industry center, and selling and administrative expenses rose somewhat due to costs related to order promotion and sales promotion.

Researcher Lee Taehwan of Daishin Securities said, "From the fourth quarter, the proportion of sales from self-developed housing such as Suwon Complex 10, Cheongju Gagyeong, and Seosan Central is expected to increase significantly," adding, "The highly anticipated Seoul One I-Park project, worth 4.8 trillion KRW, is scheduled to recognize sales based on progress after construction begins in November." Sales from self-developed housing are expected to exceed 1 trillion KRW from 2025, representing a 153% increase compared to 2024. Additionally, the cost ratio of self-developed projects promoted by HDC Hyundai Development Company is 5 to 8 percentage points lower than that of outsourced housing projects. This indicates that as self-developed projects expand, a differentiated trend of profitability improvement can be confirmed.