[Click eStock] "HDC Hyundai Development Company, Target Price Maintained at 28,000 Won"

NH Investment & Securities maintained its target price of 28,000 KRW and a buy rating for HDC Hyundai Development Company on the 29th.

Third-quarter sales reached 1.0886 trillion KRW, and operating profit was 47.5 billion KRW, in line with consensus estimates.

Sales increased due to the full-scale progress of large-scale projects in the housing outsourcing sector, and the cost ratio stabilized compared to the previous year. Meanwhile, in the general construction sector, additional costs were reflected at the completion site of the knowledge industry center.

The cumulative new orders for the third quarter amounted to 3 trillion KRW, achieving 62% of the annual guidance. New orders for quasi-self-operated projects worth 2 to 3 trillion KRW are scheduled within the year, making it likely to meet the guidance. Although construction receivables temporarily increased at the end of the third quarter, collection of construction-related claims amounting to 85.7 billion KRW and 121.9 billion KRW is expected in the fourth quarter from the Dunchon Jugong move-in and Jamsil Jinju post-sale, respectively. The sale of the Kwangwoon University station area is also scheduled for November, raising expectations for additional cash flow improvement.

Lee Eun-sang, a researcher at NH Investment & Securities, said, "Considering the stabilization of the cost ratio in the housing outsourcing sector, expanded sales contributions from the Cheongju Gagyeong 6 complex and Seosan Central in the housing self-operated sector, and the November sale of the Kwangwoon University station area development project, growth in scale and profitability improvement are expected next year."

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