[Click e-Stock] "Hyundai GF Holdings Expected to Continue Improving Fundamentals... Target Price Raised"

Target Price Raised from 8,500 Won to 9,500 Won

On September 10, IBK Investment & Securities raised its target price for Hyundai GF Holdings from 8,500 won to 9,500 won, forecasting continued improvement in the company's fundamentals. The investment opinion remains 'Buy.'

Nam Sung-hyun, a researcher at IBK Investment & Securities, explained, "The target price revision was made due to adjustments in the earnings forecast period and changes in the ownership ratios of major subsidiaries. It is also positive that the company is taking active steps toward shareholder returns, such as paying interim dividends, and is consistently pursuing strategies to secure dividend resources."

Hyundai GF Holdings announced additional acquisitions of shares in key consolidated subsidiaries when it released its second-quarter operating results this year. The company had already purchased a 1.9% stake in Hyundai Department Store and a 7.3% stake in Hyundai Home Shopping in the first half of the year, and plans to acquire an additional 1.4% stake in Hyundai Department Store in September. At the same time, the main consolidated subsidiaries are conducting share buybacks, thereby increasing Hyundai GF Holdings' control over its subsidiaries. Nam commented, "We view this expansion of control by Hyundai GF Holdings positively, as the company is building a structure in which dividend income can increase regardless of the fundamentals of its major subsidiaries, and is working to convert this into shareholder returns."

The outlook is that Hyundai GF Holdings will continue to see improvements in its fundamentals. Nam stated, "The reason for this view is that there is a high likelihood the company will continue to increase its stakes in major subsidiaries, is consistently incorporating additional consolidated subsidiaries, and is seeking to expand royalty and real estate income beyond just dividend resources. This is seen as an effort to secure additional sources of dividend income internally to ensure there are no shortcomings in implementing shareholder return policies, and it can serve as a basis for raising the company's valuation."

This content was produced with the assistance of AI translation services.