HDC Hyundai Development Company is preparing for the future through improvement of corporate structure, enhancement of technological competitiveness, and expansion of new businesses. Based on its long-established fundamental competitiveness and capabilities, the company plans to embark on a leap as a developer leading the future city.
◆ Revenue guidance of 4.3 trillion won presented
HDC Hyundai Development Company has laid the foundation for strengthening its fundamental competitiveness. Last year, through various achievements such as performance improvement, reduction of contingent liabilities, certification as an excellent service quality company in Korea, and an upgrade in credit ratings from the three major domestic credit rating agencies, it regained significant trust from customers and external organizations.
HDC Hyundai Development Company achieved results that matched its guidance with a revenue of 4.2114 trillion won last year and has set a revenue guidance of 4.3059 trillion won for this year. With plans to supply about 10,000 housing units and the sequential progress of the 'Cheonan I-Park City' brand town with 6,000 housing units, along with the commencement of large-scale complex development projects including 'Seoul Won I-Park' and 'Paju Medical Cluster,' stable performance growth is expected.
Additionally, HDC Hyundai Development Company has set a target of 4.6981 trillion won for new orders, planning to actively pursue urban complex development, its own projects, and metropolitan city-focused urban renewal projects. Specifically, it secured orders for the 4.369 billion won Wonju Phase 1 Housing Reconstruction and the 4.196 billion won Gwangan District 4 Redevelopment projects in the first quarter, with a total order amount in the urban renewal sector approaching 8.565 billion won. Furthermore, it has secured large urban renewal projects such as the Yongsan Maintenance Center Area 1, which is expected to help achieve this year's guidance.
An official from HDC Hyundai Development Company said, "Last year, HDC Hyundai Development Company achieved solid performance despite an uncertain external business environment. This year, based on stable order performance derived from our fundamental competitiveness, we will further strengthen the company's foundational structure and prove our value through results."
◆ Credit rating upgrade… Proactive risk management and stable orders yield results
The most notable achievement is the upgrade in credit ratings. During last year's regular evaluations by credit rating agencies, all three credit rating agencies raised HDC Hyundai Development Company's credit rating, and this year, Woori Bank, KB Kookmin Bank, and Hana Bank raised their credit ratings in the regular credit rating evaluations. The recovery of orders and supply, along with the reduction of project financing (PF) contingent liabilities, have been assessed as influences on the improvement of credit ratings.
HDC Hyundai Development Company proactively began managing the scale of contingent liabilities from 2022, reducing PF-related contingent liabilities to 2.204 trillion won by the end of last year, with plans to manage it down to 1 trillion won this year. In contrast, cash equivalents (including short-term financial products) increased to 1.0143 trillion won by the end of last year, representing an approximately 43% increase compared to the previous year.
Such improvements in the financial structure are expected to positively impact HDC Hyundai Development Company's project execution capability and securing new growth drivers in the future. With significant complex development projects such as Seoul Won I-Park, Paju Medical Cluster, and Yongsan Maintenance Center Area 1 actively progressing, a stable financial structure is anticipated to be a key factor enhancing the company's sustainability.
◆ Steady recovery of performance... Qualitative and quantitative growth in revenue and operating profit
HDC Hyundai Development Company recorded qualitative and quantitative growth in terms of revenue and operating profit. Despite challenging real estate market conditions, it has maintained a stable growth trend in revenue with 4.1908 trillion won in revenue and 195.3 billion won in operating profit for 2023, and forecasts for 2024 are 4.2562 trillion won in revenue and 184.6 billion won in operating profit. This year, the market expects to record increased revenue and operating profit compared to last year, with actual revenue of 905.7 billion won and operating profit of 54 billion won recorded in the first quarter of 2025, achieving double-digit growth rates in operating profit compared to the previous quarter and the same period last year.
An official from HDC Hyundai Development Company noted, "As we continue to recover and improve our performance, the operating profit for the first quarter increased significantly compared to the same period last year and the previous quarter, and the operating profit margin also increased. This was achieved through innovations in construction systems and strengthened technological competitiveness despite the current real estate market situation," providing insights into the first quarter results. They also expressed confidence in performance, stating, "As profitable business areas begin to generate revenue, we anticipate a rise in performance in the medium to long term."
The market outlook remains bright. It is expected that the Seoul Won I-Park project, which is set to be delivered in November 2024, will generate stable revenue until completion. Additionally, several large-scale complex development projects in the metropolitan area, such as the Yongsan Railway Hospital site project, Jamsil Sports and MICE, Cheongna Medical Complex Town, and Gongneung Station Area development, are in the pipeline. According to a report from NH Investment & Securities released in April of this year, HDC Hyundai Development Company's revenue is projected to reach 4.732 trillion won in 2026 and 5.009 trillion won in 2027, with operating profits of 421 billion won in 2026 and 545 billion won in 2027, showing continued growth.
◆ Focus on reinforcing internal strength... Stock prices rise 47% this year
As revenue growth becomes visible, HDC Hyundai Development Company's stock price is also receiving favorable evaluations in the market and shows growth. The successful sales of Seoul Won I-Park and the stable revenue generation expectations from upcoming projects are reflected in this performance. Despite fluctuations in the stock market influenced by tariffs from the U.S., the stock price rose from 16,100 won at the close on February 3 to 25,650 won at the close on May 23, marking a 59.3% increase. This is a notable achievement in the construction industry.
Market sentiment is even more optimistic. All 14 securities firms that issued investment reports on HDC Hyundai Development Company are forecasting a rise in stock prices, with a target price of around 30,000 won, indicating that the current stock price still has room for further increase.
◆ Foreign and pension funds influx... Maximizing shareholder value
In addition to stable financial performance, the stock price has surged, attracting attention from foreign investors and pension funds. The equity ownership ratio of pension funds, which was 5.64% at the end of 2023, has significantly increased to 13.48% as of the end of March 2025. Foreign investors increased their equity ownership from about 10.5% in the period before the sales of Seoul Won I-Park in October 2024 to 11.85% as of April 25.
HDC Hyundai Development Company is working towards enhancing shareholder value in response to the increasing equity holdings of major institutional investors, including foreign and pension funds. Recently, the company has demonstrated a steady trend towards increasing dividends. Starting from 500 won per share (dividend payout ratio of 9.6%) in 2018, cash dividends have risen to 600 won in 2020 and 700 won in 2023. At the regular general meeting of shareholders in March 2025, a dividend of 700 won per share was resolved, with the dividend payout ratio reaching 28.3%.
HDC Hyundai Development Company is not only expanding dividends but also overhauling its dividend policy. It has formalized a medium-term policy to distribute over 20% of net income on a separate basis over the next three years as dividends, and has also changed the dividend record date through amendments to its articles to allow shareholders to predict dividends better. Additionally, in March of this year, the board resolved to directly purchase approximately 100 billion won worth of its own shares, totaling 508,646 shares, further clarifying its commitment to enhancing shareholder value.
An official from HDC Hyundai Development Company stated, "Despite the rapidly changing market environment, we have consistently worked to strengthen our fundamental competitiveness and secure financial stability," adding, "In the future, we plan to increase revenue based on a stable financial structure while simultaneously enhancing investor relations and striving to enhance shareholder value."