[Click e-Stock] "HDC Hyundai Development Company to Maintain Growth... Valuation Appeal Rising"

On October 29, LS Securities evaluated HDC Hyundai Development Company, stating, "Considering that profits from development projects are entering a full-fledged phase, the company is entering a period where its valuation merits are expanding." Accordingly, the firm maintained its "Buy" investment rating and a target price of 27,000 won per share.

HDC Hyundai Development Company's sales for the third quarter were 1.053 trillion won, similar to the same period last year, while operating profit reached 73 billion won, up 53.8% year-on-year. Kim Saeryeon, a researcher at LS Securities, analyzed, "Although sales from certain sites, such as Suwon Ipark City, reflected relatively low margins, temporarily lowering divisional margins, the results were in line with consensus and overall performance was solid."

She further forecasted, "Taking into account the entry into the peak construction season in the fourth quarter, the expansion of sales at Seoul One Ipark, and the mix improvement effect from the full-scale sales of high-margin sites based on new orders worth approximately 4 trillion won within the year, we expect to see gradual margin improvement and profit volume growth starting in the fourth quarter."

The acceleration of the development project pipeline was also cited as a growth driver. Large-scale projects such as the Paju Medical Cluster and the Cheonan Buseong and Seongseong districts are scheduled to break ground, and these sites are expected to deliver both significant scale and margins. Additionally, she pointed out, "Based on the projected full-scale sales at major sites such as Seoul One Ipark in 2027, the price-to-earnings ratio (PER) is expected to be only around 3 times, indicating that the current share price is in an excessively undervalued range."