Corporate Logo(source: hdc-dvp.com)
NH Investment & Securities announced on July 8 that it is maintaining a “Buy” rating on HDC Hyundai Development (294870) while raising its target price by 7% to 30,000 won. The revision reflects expectations for a recovery in the construction sector, driven by fiscal stimulus and capital recovery from distressed project financing (PF) sites.
Analyst Lee Eun-sang stated, “We expect earnings to continue improving over the remaining quarters, supported by revenue recognition from the Seoul One I-Park project, normalization of cost ratios in the outsourced housing segment, and the conclusion of cost recognition for knowledge industry centers.” He added, “If large-scale projects currently on hold begin construction, there is potential for further valuation upside.”
For the second quarter, the company is expected to report revenue of 1 trillion won, down 6% year-on-year, and operating profit of 73.1 billion won, up 36%, which would be in line with market consensus.
Lee noted, “While revenue from the self-developed housing segment is expected to decline due to the deferral of delivery recognition for Suwon I-Park Phases 11 and 12 to the third quarter or later, this will likely be offset by increased revenue in the outsourced housing segment, driven by accelerated construction progress.”
*[KOSPI]HDC Hyundai Development Company(294870) is a comprehensive construction company that not only performs contract-based construction but also focuses on development-type construction projects to enhance profitability. The business segments include construction(in-house projects, outsourced housing, general architecture, civil engineering) and others(PC business, hotels and condos, residential building development and supply). Market capitalization is 1.466 trillion won(as of July 7, 2025, closing price).
Corporate Logo(source: hdc-dvp.com)
NH Investment & Securities announced on July 8 that it is maintaining a “Buy” rating on HDC Hyundai Development (294870) while raising its target price by 7% to 30,000 won. The revision reflects expectations for a recovery in the construction sector, driven by fiscal stimulus and capital recovery from distressed project financing (PF) sites.
Analyst Lee Eun-sang stated, “We expect earnings to continue improving over the remaining quarters, supported by revenue recognition from the Seoul One I-Park project, normalization of cost ratios in the outsourced housing segment, and the conclusion of cost recognition for knowledge industry centers.” He added, “If large-scale projects currently on hold begin construction, there is potential for further valuation upside.”
For the second quarter, the company is expected to report revenue of 1 trillion won, down 6% year-on-year, and operating profit of 73.1 billion won, up 36%, which would be in line with market consensus.
Lee noted, “While revenue from the self-developed housing segment is expected to decline due to the deferral of delivery recognition for Suwon I-Park Phases 11 and 12 to the third quarter or later, this will likely be offset by increased revenue in the outsourced housing segment, driven by accelerated construction progress.”
*[KOSPI]HDC Hyundai Development Company(294870) is a comprehensive construction company that not only performs contract-based construction but also focuses on development-type construction projects to enhance profitability. The business segments include construction(in-house projects, outsourced housing, general architecture, civil engineering) and others(PC business, hotels and condos, residential building development and supply). Market capitalization is 1.466 trillion won(as of July 7, 2025, closing price).