Hanwha Investment & Securities noted on 5th that HDC's performance is expected to show a steep growth trend over the next 2 to 3 years. It maintained a buy investment opinion and raised the target stock price from the previous 27,000 won to 30,000 won. HDC's closing price on the previous trading day was 20,450 won.
HDC announced that it recorded revenue of 1.57 trillion won and operating profit of 154.8 billion won for the first quarter of this year (January to March). This represents increases of 14.2% and 104.8%, respectively, compared to the same period last year. It exceeded the previous operating profit estimate by 19.1%.
Song Yu-rim, a researcher at Hanwha Investment & Securities, analyzed that "the performance contribution of its subsidiary, Tongyeong Ecopower, has been significant," adding that "considering Tongyeong Ecopower started commercial operation from last October, a steep improvement in performance is expected to continue throughout this year."
Hanwha Investment & Securities explained that alongside the rapid performance growth, there are also high expectations for dividends.
Researcher Song analyzed that "HDC is expected to have high growth over the next 2 to 3 years due to the performance contribution of Tongyeong Ecopower this year, and starting next year, due to the significant profit growth of HDC Hyundai Development Company."
He added that "however, due to the continuous rise in stock prices, the current yield based on last year's dividends per share (DPS) of 350 won has fallen to about 1%," noting that "a gradual increase in DPS is expected in line with the future improvement in performance."