[Click eStock] "Hyundai GF Holdings, Consolidation Effects in Full Swing"

On May 21, IBK Investment & Securities raised its target price for Hyundai GF Holdings from 7,000 won to 8,500 won, citing continued growth in the holding company's corporate value driven by the strong performance of its major consolidated subsidiaries. The firm maintained its "Buy" investment rating.

In the first quarter, Hyundai GF Holdings posted consolidated sales of 2.0721 trillion won (up 71.8% year-on-year) and operating profit of 88.1 billion won (up 139.3% year-on-year). Nam Sung-hyun, a researcher at IBK Investment & Securities, explained, "Standalone operating results fell sharply due to changes in the dividend payment date of key subsidiaries. However, consolidated operating results rose significantly, driven by the strong performance of major consolidated subsidiaries such as Hyundai Green Food and Hyundai Livart, as well as the effect of including Hyundai EZwell as a consolidated subsidiary."

Further increases in corporate value are also expected. Nam pointed to several factors: Hyundai GF Holdings' continued expansion of its stake in key subsidiaries (including an additional 7.4% acquisition of Hyundai Home Shopping shares); the consolidation of Hyundai EZwell as a subsidiary through increased equity ownership; and the strengthening of control and additional dividend resources resulting from the purchase and cancellation of treasury shares by major subsidiaries.

Nam added, "In the long term, the company plans to secure additional income sources for the holding company itself, such as rental income from the Apgujeong District 3 shopping complex and the development of a corporate identity (CI) to receive brand royalties. These efforts are intended to further secure independent dividend sources and strengthen shareholder return policies, which could serve as grounds for raising the company's valuation."