Hyundai Motor Securities has seen its earnings rebound this year, lifting corporate value as well. In line with the previously released "shareholder value enhancement plan (value-up plan)," Hyundai Motor Securities laid out a blueprint to improve profitability and strengthen its fundamentals.
According to the Financial Supervisory Service's electronic disclosure system on the 31st, Hyundai Motor Securities' third-quarter net profit on a consolidation basis this year was 12.2 billion won, up 14.7% from a year earlier.
Operating profit came to 14.1 billion won, down 3.3% from a year earlier. The company said this reflected the impact of more than 10 billion won in one-off expense.
Cumulative operating profit was 68.2 billion won, up 44.7% from a year earlier. Cumulative net profit was 52.2 billion won, up 45.9%.
Hyundai Motor Securities cited balanced revenue contributions from all business lines—including sales and trading (S&T), retail, and investment banking (IB)—as the key driver of the latest earnings gains. In the retail segment, it said net operating revenue rose 20% from a year earlier thanks to a recovery in transaction value and the strengthening of VIP wealth management (WM) channels.
The IB segment expanded the scope of financial arrangements beyond a real estate-centric portfolio into non-real-estate areas such as infrastructure, ESG finance, and air logistics. As a result, net operating revenue increased by more than 50%. The S&T segment also maintained stable results by expanding bond brokerage and underwriting operations.
The turnaround in return on equity (ROE) also gathered pace. ROE, which was 2.8% at the end of last year, came in at 5.1% in the third quarter of this year.
In addition, under the value-up plan, Hyundai Motor Securities in March successfully completed a 162 billion won rights offering for existing shareholders, recording a 102.8% oversubscription rate. In the same month, it bought back and canceled all 7.04 million redeemable convertible preferred shares (RCPS), improving its capital structure and easing concerns about stock dilution.
The company is also continuing to strengthen communication with investors. Early this year, it held a "CEO mid- to long-term corporate value enhancement investor relations session" attended by 10 executives including President Bae Hyeong-geun, and it is continuing efforts such as publishing a corporate analysis report with the Korea IR Association and ongoing IR activities.
Corporate value has also swelled quickly. Hyundai Motor Securities' share price rose 38% from 6,510 won on Jan. 16 this year, when the value-up plan was released, to 8,970 won on the 27th. Its market capitalization also crossed the 550 billion won mark.
A Hyundai Motor Securities official said, "The third-quarter results this year are meaningful in that they show the core business competitiveness is being systematically strengthened through the implementation of the value-up roadmap," adding, "We will continue to focus on improving ROE and enhancing shareholder value by diversifying the revenue portfolio and pursuing capital efficiency strategies in line with the value-up plan."