HDC Hyundai Development Company is solidifying market trust based on a robust financial structure and a management strategy focused on substance. It further strengthened its financial fundamentals through maintaining a stable credit rating, improving the liability ratio, and achieving asset efficiency, and it proved strong investor confidence by recording oversubscription in the recent corporate bond book-building.
HDC Hyundai Development Company presented a sales guidance (estimate) of 430.59 billion won for this year. As large-scale development projects such as Cheonan I'Park City, Seoul One I'Park, and Unjeong I'Park Forest move into full swing, steady growth is expected. In particular, it is increasing performance visibility through the sale of about 10,000 units and the supply of a brand town with more than 6,000 units.
It set this year's new order target at 469.81 billion won and is actively pursuing urban complex development and urban renewal projects. Already in the first half, through winning major renewal projects such as Yongsan Maintenance Depot Front District 1, cumulative urban renewal orders reached 378.74 billion won, far exceeding last year's performance. In addition, cumulative new orders through the third quarter totaled 443.44 billion won, including the urban renewal segment. As of the third quarter, this is 94% of the 469.81 billion won that HDC Hyundai Development Company presented as its start-of-year outlook. HDC Hyundai Development Company plans to achieve the presented guidance and continue long-term growth through a stable order base.
◇ Outlook for achieving this year's sales and order guidance
HDC Hyundai Development Company recorded both qualitative and quantitative growth in sales and operating profit. The company's third-quarter operating profit rose about 53.8% from a year earlier, and the third-quarter operating margin came in at 6.9%, showing a steady uptrend. In particular, cumulative operating profit through the third quarter of this year was 207.3 billion won, up 45.1% from the 142.9 billion won accumulated through the third quarter of the previous year, highlighting its financial management capability.
The rise in operating profit despite an uncertain real estate market, including continued increases in raw material prices and labor costs, is seen as being driven by revenue recognition from large business sites such as the in-house projects Seoul One I'Park and Cheongju Gagyeong I'Park Phase 6, as well as revenue recognition upon completion of Suwon I'Park City Phases 10–12.
HDC Hyundai Development Company said, "We will maintain financial soundness through systematic cost ratio management and increased sales in the in-house business institutional sector. We can also expect revenue recognition from the progress of large business sites such as Unjeong I'Park Forest and the recently launched Cheonan I'Park City Phase 2, which will show a stable uptrend in performance."
A HDC Hyundai Development Company official said, "In the fourth quarter and into 2026, sales are expected to increase from Seoul One I'Park and Cheongju Gagyeong I'Park Phase 6," adding, "After that, we plan to maintain stable presales by continuing steady supply of more than 10,000 units nationwide, focusing on proven business sites such as Cheongju Gagyeong I'Park and Cheonan I'Park City."
◇ Corporate bond book-building draws strong demand ··· a total of 232 billion won flows in
The positive results of HDC Hyundai Development Company's financial soundness can be seen in the market. In the corporate bond book-building conducted in June, the company secured investment demand totaling 232 billion won, proving stable funding capability. The book-building was divided into 2-year and 3-year tranches, seeking 70 billion won and 50 billion won, respectively, and the results drew 168 billion won for the 2-year and 64 billion won for the 3-year, for a final average competition ratio of 1.9 to 1.
Accordingly, HDC Hyundai Development Company plans to increase the originally planned 120 billion won of corporate bonds and finalize issuance totaling 151 billion won. The 2-year tranche will be issued at 98 billion won and the 3-year at 53 billion won, with indicative coupon rates of 3.647% for the 2-year and 4.195% for the 3-year. The spreads versus the market average yields are +4 basis points (bp) and +31 bp, respectively, indicating it secured rate competitiveness despite uncertainty across the construction industry.
◇ Holding company HDC, strong corporate bond book-building ··· secures more than four times investor demand
Beyond HDC Hyundai Development Company's financial results, holding company HDC proved market trust by delivering better-than-expected results in its first public corporate bond return in four years. In the recent book-building, total orders of 223 billion won poured in versus the 50 billion won offering, securing more than four times investor demand. By tranche, 121 billion won participated in the 2-year against a 30 billion won offering, and 102 billion won participated in the 3-year against a 20 billion won offering, and while the desired additional charge band was broadly presented at -50 to +50 bp versus the A0 rating market average, actual orders were filled at -5 bp and -4 bp, respectively. This is significant in that it confirmed solid demand in the market. As HDC Hyundai Development Company and Tongyeong Eco Power also successfully completed corporate bond issuances this year, there is an assessment that funding stability has strengthened across the group.
A HDC Hyundai Development Company official said, "Even as uncertainty persists across the construction industry, HDC Hyundai Development Company is continuing a steady recovery in performance based on a developer-centered business portfolio and a stable financial structure," adding, "We will enhance financial soundness and the efficiency of capital management based on trust with the market, and steadily execute our mid- to long-term growth strategy."
The official added, "An upgrade in our credit rating, strong corporate bond book-building, and improved performance show that the market highly values HDC Hyundai Development Company's resilience and growth potential," and "We will continue to strengthen competitiveness in core businesses such as urban complex development and urban renewal projects, and build a sustainable revenue structure to enhance shareholder value while fulfilling our social responsibility."