DS Investment & Securities said on the 28th that Hyundai Elevator's high-dividend policy this year is expected to be further expanded next year. It maintained a Buy recommendation and set a target price of 98,000 won. Hyundai Elevator's closing price the previous day was 81,200 won.
DS Investment & Securities projected that Hyundai Elevator will pay at least 12,000 won per share in dividends as of the end of February next year.
Hyundai Elevator, as part of its shareholder value enhancement policy, reduced 307.2 billion won in capital reserves to zero and transferred it to retained earnings. It said it will include all of this in this year's settlement of account dividend funds. In addition, under the shareholder return policy released in 2023, it plans to use 50% or more of net profit as recurring dividend funds.
Kim Su-hyeon, an analyst at DS Investment & Securities, said, "This year's expected net profit is 173.5 billion won, and 50% or more of this will be used for dividends."
In addition, it plans to pay up to 100% in dividends on the approximately 73.5 billion won in gains from the recent asset sale process. It also plans to pay a third-quarter settlement of account dividend of 1,000 won per share with the record date on the 30th.
Kim said, "Adding these together, total dividends of at least 12,000–14,000 won per share are expected," adding, "Based on the previous day's closing price, the dividend yield comes to 14.7%–17.2%."
This high-dividend policy was also expected to be further expanded in 2026 due to Hyundai Holdings' governance issue. DS Investment & Securities added that the Yeonji-dong headquarters was recently sold for about 450 billion won, and most of these funds are expected to be used for 2026 dividend funds.
DS Investment & Securities projected earnings improvement in 2026 and said that, under the current administration's stance, the North Korea-related momentum (upside potential) remains valid.
DS Investment & Securities forecast 2026 results of 2.88 trillion won in revenue and 249.1 billion won in operating profit. These represent increases of 3% and 17%, respectively, from the same period a year earlier.
Kim said, "Thirteen leading districts aiming for move-in in 2030 are being pursued, and an increase in order volume is expected in 2026," adding, "The administration's policy to expand supply to provide 1.35 million homes by 2030 is also a factor for demand improvement."
Kim added, "Under the current administration, North Korea-related momentum also remains valid."