Korea Investment & Securities analyzed on 1st that Hyundai E&C would have its corporate value reevaluated as it clearly presented its long-term growth goals and shareholder return plan regarding its use of net cash. The target stock price was raised from 44,000 won to 53,000 won, and the investment opinion was maintained as "buy."
Research Institute Kang Gyeong-tae said, "Hyundai E&C will raise the minimum dividend per common share to 800 won, up 33.3% from the previous amount, and will increase the total shareholder return rate (TSR) to 25%, expanding resources for shareholder returns."
He added, "Assuming a cash dividend payout ratio of 13%, if the performance target for 2030 is met, the dividends per common share (DPS) will rise to 2,250 won," and noted that the valuation multiple, which has been well below a price-to-book ratio (PBR) of 1 for over a decade, will be recalibrated.
Research Institute Kang projected that "Hyundai E&C will secure orders worth around 5 trillion won by combining large nuclear power plants and small modular reactors (SMRs) by 2030," and that "in the institutional sector of construction and dwellings, it will achieve a profit margin of over 13% to meet its earnings target."