Hyundai Motor Securities Steadily Executes Value-Up Plan... Earnings Up 45%, Market Cap Up 168%

Hyundai Motor Securities has recorded solid performance growth through the third quarter of this year, with improvements in profitability and structural transformation becoming visible in line with the 'Shareholder Value Enhancement Plan (Value-Up Plan)' announced at the beginning of the year.

According to the Financial Supervisory Service's electronic disclosure system on November 17, Hyundai Motor Securities' cumulative consolidated operating profit for the third quarter of this year reached 68.2 billion won, up 44.7% compared to the same period last year, while net profit for the period increased by 45.9% to 52.2 billion won.

Even on a single-quarter basis for the third quarter, despite reflecting large-scale one-off expenses exceeding 10 billion won, the company achieved solid results, with operating profit at 14.1 billion won, down 33% year-on-year, and net profit at 12.2 billion won, up 14.7% year-on-year.

The key drivers behind this performance improvement include balanced profit contributions across all business divisions, such as Sales & Trading (S&T), Retail, and Investment Banking (IB). The Retail division saw a 20% increase in net operating income year-on-year, driven by a recovery in transaction volume and strengthened VIP wealth management (WM) channels. The IB division achieved a more than 50% increase in net operating income by expanding its financial arrangement scope from a real estate-focused portfolio to include non-real estate areas such as infrastructure, ESG (Environmental, Social, and Governance) finance, and aviation logistics, clearly demonstrating the results of its portfolio structural transformation. The S&T division also maintained stable performance through expanded bond brokerage and underwriting operations.

In line with these results, the turnaround in return on equity (ROE) has also become evident. As of the end of 2024, ROE stood at 2.8%, but by the third quarter of this year, it reached 5.1%, surpassing the 4% target set at the time of the Value-Up Plan announcement.

In addition, under the Value-Up Plan, Hyundai Motor Securities successfully completed a 162 billion won rights offering for shareholders in March, recording an oversubscription rate of 102.8%. In the same month, the company purchased and retired all 7.04 million redeemable convertible preferred shares (RCPS), simultaneously achieving both 'capital structure improvement' and 'alleviation of stock dilution concerns.'

The company also continued to strengthen communication with investors. Early this year, CEO Bae Hyungkeun and nine other executives held a 'CEO Mid- to Long-Term Corporate Value Enhancement IR Session,' published a corporate analysis report through the Korea IR Association, and maintained ongoing investor relations (IR) activities, thereby raising market expectations for long-term shareholder return policies.

The market's positive evaluation of this Value-Up implementation has also led to an increase in corporate value. Compared to January 16, when the Value-Up Plan was announced, Hyundai Motor Securities' stock price rose approximately 38% from 6,510 won to 8,970 won as of the closing price on October 27. Its market capitalization increased by about 168% to approximately 554.6 billion won.

A Hyundai Motor Securities official stated, "The results for the first to third quarters this year are significant in that they demonstrate the systematic strengthening of our core business competitiveness through the execution of the Value-Up roadmap," adding, "We will continue to focus on improving ROE and enhancing shareholder value by diversifying our profit portfolio and pursuing capital efficiency strategies in line with the Value-Up Plan."

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