Hyundai G.F Holdings(005440) is carrying out a shareholder return policy while wrapping up a shareholder-friendly governance overhaul, leading to expectations that the share price will rise going forward.
Choi Gwan-sun of SK Securities said in a recently released report, "Through dividends and share repurchases and cancellations, Hyundai G.F Holdings' shareholder return rate reaches 8.0%, and through the governance overhaul, dividend revenue is expected to expand from 62.4 billion won in 2026 to 100.0 billion won in 2027," adding, "A gradual rise in the share price is expected."
Hyundai G.F Holdings decided on an interim dividend of 65 won per share, and including the year-end dividend (376 won per share), the dividend yield is 3.6% versus the current share price. It also plans to buy back treasury shares worth 50.0 billion won by the end of Oct. and cancel them within the year.
The governance overhaul is also seen as friendly to shareholders. The company decided to make Hyundai Home Shopping a wholly owned subsidiary through a comprehensive share swap, then proceed with a spin-off. After the spin-off, it plans to bring Handsome, Hyundai Futurenet, and others in as subsidiaries through a merger with the investment division.
Choi added, "This is expected to increase dividend income and resolve Hyundai Bioland's conduct restriction requirements," noting, "The equity stake in the subsidiary Daewon kang up is also set to increase."
In the second quarter, Hyundai G.F Holdings' consolidation revenue came to 2.1 trillion won, up 2.8% from a year earlier. Operating profit rose 15.6% to 85.3 billion won. While furniture specialist ZINUS continues to post weak results, the Hyundai Department Store and duty-free institutional sector are showing solid performance.
Park Jong-ryeol of Heungkuk Metaltech Securities also assessed that, after Hyundai G.F Holdings shifted to a single holding-company structure, consolidated subsidiaries' earnings stability and dividend expansion are expected. Park said, "If governance improves by expanding control over subsidiaries, shareholder return policies strengthen with a focus on total shareholder return (TSR), and hidden real estate such as retail-lot sites in Apgujeong District 3 are reappraised, the share price could be re-rated."