[Click eStock] "Hyundai GF Holdings: Solid Dividend Policy and Subsidiary Performance Growth"

On October 29, IBK Investment & Securities analyzed that Hyundai GF Holdings' strategy of increasing its stake in major subsidiaries and continuing their consolidation since its establishment as a holding company will be reflected in its third-quarter operating results this year. The investment opinion remains 'Buy', with a target price maintained at 9,500 won.

Hyundai GF Holdings' consolidated sales for the third quarter are estimated at 2.1142 trillion won (up 5.1% year-on-year), with operating profit projected at 81.4 billion won (up 22.2% year-on-year). Nam Sung-hyun of IBK Investment & Securities stated, "Growth in the performance of consolidated subsidiaries, dividend income (interim dividends from Hyundai Green Food and Hyundai Department Store), and profit increases due to the consolidation of major subsidiaries are expected." He added, "In particular, significant growth is anticipated from key consolidated subsidiaries Hyundai Green Food and Hyundai Livart."

For Hyundai Green Food, an increase in the number of meal service days due to the timing of the Chuseok holiday and a rise in meal demand driven by favorable conditions in downstream industries have been identified as factors supporting performance growth. For Hyundai Livart, increased B2B (special contract) supply volume is considered the key to improved results. Regarding dividend income, an additional profit of approximately 7.7 billion won is expected due to interim dividends from Hyundai Green Food and Hyundai Department Store.

Researcher Nam commented, "The government is currently considering policies to ease the separate taxation on dividend income, so the future value of holding companies will depend on the expansion of dividend resources and the stability of dividend payments." He further assessed, "The company implements its dividend policy based on absolute amounts and is making continuous efforts to improve its fundamentals, making it well-aligned with these criteria."

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