Heungkuk Securities analyzed on the 13th that despite the consumption recession, Hyundai G.F Holdings continues to have good performance momentum, and the intention to return profits to shareholders has been confirmed. It then raised the target stock price from the previous 7,000 won to 8,000 won and maintained a 'buy' investment opinion. The closing price of Hyundai G.F Holdings on the previous trading day was 5,970 won.
In the first quarter of this year, Hyundai G.F Holdings recorded a consolidated revenue and operating profit of 2.1 trillion won and 956 billion won, respectively, marking increases of 77.4% and 159.7% year-on-year. Although it slightly fell short of market expectations, it reported good performance.
Park Jong-ryeol, a researcher at Heungkuk Securities, said, "The consolidation effect from Hyundai Home Shopping in the second quarter and the overall sales increase from subsidiaries like Hyundai Green Food are continuing." In terms of pre-tax profit, a bargain acquisition gain of 119.8 billion won was generated due to additional equity acquisitions of Hyundai Department Store and DAEWON, significantly exceeding expectations.
Despite the overall consumption economy recession, operating profit is expected to improve significantly this year, following last year's trend. Researcher Park noted, "The warmth from the sales performance of Hyundai Home Shopping, along with the steady recovery of Hyundai Green Food, Hyundai Everdigm, and Hyundai LIVART, is continuing." Heungkuk Securities estimates that the annual consolidated revenue will increase by 15.3% year-on-year to 8.6 trillion won, and operating profit will rise by 57.8% to 312.6 billion won.
Researcher Park also said, "Hyundai G.F Holdings will likely sustain long-term dividend expansion due to increased dividend income from subsidiaries, rental income from developed real estate, and royalty income from trademark development."