Hyundai Motor Securities announced a plan to enhance corporate value, focusing on revenue generation and expanding shareholder returns on the 16th.
Hyundai Motor Securities decided to raise its dividend payout ratio to over 40% by 2028. Hyundai Motor Securities set a lower limit of 30% for the consolidated dividend payout ratio over the next three years starting in 2025. Additionally, it plans to redeem all 7.04 million shares of its previously issued convertible redeemable preferred stock (approximately 775 billion won) in May and then cancel them.
Hyundai Motor Securities also aims to increase its return on equity (ROE) each year to achieve over 10% by 2028. The company has set a medium-term plan to achieve an ROE of 4% this year through measures including a capital increase, and to elevate the ROE to around 8% by 2027 by implementing next-generation ledger systems. If Hyundai Motor Securities achieves its ROE targets, the price-to-book ratio (PBR; market capitalization ÷ net worth) is expected to improve, remaining around 0.2 times.
Hyundai Motor Securities has set goals by institutional sector: ▲Retail: strengthen competitiveness in digital specialization and retirement pension business ▲Diversification of revenue sources in Sales & Trading (S&T) ▲Diversification of the investment banking (IB) portfolio. Furthermore, the company plans to hold semi-annual performance briefings and strengthen corporate communications.
A Hyundai Motor Securities official noted, "Based on this corporate value enhancement plan, we will actively pursue 'corporate value-up' and expand shareholder returns through improvements in ROE and dividends through future self-help efforts."