Hyundai Elevator Expected to Continue Large-Scale Dividends [Click e-Stock]

At Least 12,000 Won Per Share Expected by End of February Next Year

There is an analysis suggesting that Hyundai Elevator will pay a minimum dividend of 12,000 won per share at the end of February next year.

On November 28, DS Securities raised its target price for Hyundai Elevator by 4.3% to 98,000 won and maintained its "Buy" rating. The previous day's closing price was 81,200 won. This decision took into account Hyundai Elevator's substantial dividend resources.

As part of its shareholder value enhancement policy, Hyundai Elevator fully reduced its capital reserve of 307.2 billion won and transferred it to retained earnings. The company also announced that it would include the entire amount as a resource for this year’s year-end dividend.

In addition, in line with the shareholder return policy announced in 2023, the company plans to use at least 50% of its net income as a dividend resource. DS Securities estimated Hyundai Elevator’s net income for this year at 173.5 billion won.

Regarding profits generated from recent asset sales (including the sale of part of a building and a stake in Movex totaling 73.5 billion won), the company plans to pay out up to 100% as dividends. Additionally, based on November 30 as the record date, a third-quarter dividend of 1,000 won per share will be paid. In total, the dividend per share is expected to reach at least 12,000 to 14,000 won. Based on the previous day's closing price, the dividend yield amounts to 14.7% to 17.2%.

This high-dividend policy is expected to continue next year. Recently, the company's headquarters in Yeonja-dong, Seoul, was sold for approximately 450 billion won, and most of these funds are expected to be used as dividend resources for 2026. The company’s current non-core assets are estimated to include the Banyan Tree Hotel (with an appraised value of at least 500 billion won), the Bloomvista Hotel (at least 120 billion won), and other investments (at least 200 billion won). In addition, the Yongsan Najin Shopping Center, which was purchased for 100.4 billion won in 2021, is now estimated to have tripled in value, considering the ongoing development of the Yongsan International Business District. Part of the Najin Shopping Center may be liquidated next year and is also expected to be used as a dividend resource.

The company's performance itself is also expected to improve next year. Thirteen leading districts, totaling 35,897 households and targeting occupancy by 2030, are being developed, with an increase in orders expected next year. The government’s supply expansion policy (1.35 million units by 2030) is also a factor in improving demand.

Brand competitiveness is also strengthening, as evidenced by a 48% penetration rate in large complexes in Seoul's Gangnam area, and service revenue, which has a 20% profit margin, is expected to continue growing. Kang Taeho, a researcher at DS Investment & Securities, explained, "Next year’s operating profit is projected to reach 249.1 billion won, up 17% from this year’s estimate," adding, "Under the current administration, the North Korea momentum also remains valid."