Hanwha Investment & Securities on the 25th said that for HDC Holdings, the trend of expanding dividends is likely to continue this year on the back of steady profit growth at subsidiaries such as Tongyeong Eco Power. It maintained a "Buy (BUY)" rating and raised its target price to 34,000 won from 32,000 won. HDC Holdings' closing price in the previous session was 26,550 won.
Song Yu-rim, an analyst at Hanwha Investment & Securities, said of HDC Holdings, "The trend of expanding dividends is expected to continue this year based on subsidiaries' earnings growth," adding, "An increase in corporations' value through business portfolio expansion is also something to watch."
Song expected subsidiaries' earnings growth to continue. Song said, "Last year, if the contribution to results was overwhelmingly driven by Tongyeong Eco Power's 208.5 billion won increase in operating profit, this year HDC Hyundai Development Company's operating profit is projected at 167 billion won, with standout growth," adding, "Most other subsidiaries, including Hyundai EP, I'Park Mall, and I&Cons, are also seeing continued profit improvement."
Amid this, Song judged that the recent rise in LNG prices due to the Middle East situation would also have a positive impact on HDC Holdings' profitability. Song said, "On the back of the surge in LNG prices caused by the Middle East situation, Tongyeong Eco Power's profitability is expected to improve this year," adding, "Over the mid to long term, as HDC Group seeks to expand its energy business, news of related new investments is anticipated."
Song also assessed that HDC Holdings has a strong chance of continuing shareholder-return moves. Song said, "Since 2023, HDC Holdings has purchased treasury shares every year and now holds 17.1% in treasury stock," adding, "Because it has not yet decided on cancellation or utilization, expectations on this front remain alive."
Song added, "According to the 2026–2028 dividend policy released last year, it plans to pay cash dividends of at least 35% of standalone operating profit, and this year it paid 450 won per share, equivalent to 44.2% of last year's operating profit," adding, "As dividend-paying channels such as Tongyeong Eco Power and I'Park Mall expand, mid- to long-term dividend increases are expected."