[Market Focus] Hyundai Elevator Rises on Expectations of Increased Dividends

Hyundai Elevator is showing an upward trend amid expectations for increased dividends.

As of 9:15 a.m. on November 28, Hyundai Elevator was trading at 83,700 won on the Korea Exchange, up 2,500 won (3.08%) from the previous day.

On this day, DS Securities raised its target price for Hyundai Elevator from 94,000 won to 98,000 won, anticipating that large-scale dividends will continue. Suhyun Kim, a researcher at DS Securities, stated, "As part of its shareholder value enhancement policy, Hyundai Elevator has fully reduced its capital reserves of 307.2 billion won and transferred them to retained earnings, and the entire amount will be included as resources for the 2025 year-end dividend." Kim continued, "Additionally, according to the shareholder return policy announced in 2023, the company plans to use more than 50% of its net profit as a regular dividend resource. The expected net profit for this year is 173.5 billion won, and more than 50% of this will be used for dividends. Furthermore, the company plans to distribute up to 100% of the profits generated from the recent asset sales as dividends, and will pay an interim dividend of 1,000 won per share for the third quarter, with November 30 as the record date." Kim added, "In total, the dividend per share is expected to be at least 12,000 to 14,000 won, resulting in a dividend yield of 14.7% to 17.2% based on the previous day's closing price."

High dividends are expected to continue next year as well. Kim stated, "Due to Hyundai Holdings' governance structure issues, the high dividend policy for 2025 will be further expanded next year. Recently, the Yeonji-dong headquarters building was sold for approximately 450 billion won, and most of this capital will be used as resources for the 2026 dividend," Kim said.

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