[Market Focus] Hyundai Department Store Surges 7% to Record High on Earnings Improvement and Shareholder Return Expectations

Hyundai Department Store continued its upward trend for the fourth consecutive day, reaching a new 52-week intraday high.

As of 9:15 a.m. on May 12, 2025, Hyundai Department Store was trading at 66,000 won on the Korea Exchange, up 4,700 won (7.67%) from the previous session. During the session, the price climbed as high as 66,300 won, setting a new 52-week high.

Expectations for improved earnings and enhanced shareholder returns are seen as the main factors driving the stock price increase.

Previously, on May 9, Hyundai Department Store announced in a regulatory filing that its consolidated operating profit for the first quarter of this year was provisionally tallied at 112.5 billion won, up 63.3% from the same period last year. During the same period, revenue increased by 15.4% to 1.0981 trillion won, and net profit rose by 24.8% to 88.3 billion won. Park Sangjun, a researcher at Kiwoom Securities, stated, "Hyundai Department Store's first-quarter operating profit exceeded the market consensus (the average of securities firms' forecasts)," adding, "This was due to better-than-expected results from Zinus, reflecting the reversal of provisions following a favorable outcome in the anti-dumping lawsuit, and improved profitability at duty-free stores as competition at downtown locations eased." Kiwoom Securities raised its target price for Hyundai Department Store from 75,000 won to 81,000 won, reflecting the upward revision of earnings estimates. Park explained, "The fundamentals of the core business are improving, supported by a recovery in consumer sentiment due to reduced political uncertainty and a turnaround in the performance of duty-free stores and Zinus. Furthermore, the company's strengthened shareholder return policy, including share buybacks and increased dividends, is also a positive factor."

Shinhan Investment also raised its target price for Hyundai Department Store by 6% to 75,000 won. Cho Sanghoon, a researcher at Shinhan Investment, commented, "This reflects the upward revision of company-wide earnings estimates," and added, "Attractive valuation and a strengthened shareholder return policy are serving as strong downside support factors. In addition, the company is positively evaluated for further shareholder return initiatives, such as using half of the cash inflow from the sale of the remaining stake in Hyundai Home Shopping as funds for share buybacks."