HDC Hyundai Development Company’s financial structure improvement and sound management strategies have been positively evaluated in the market. The maintenance of a stable credit rating, continuous improvement in liability ratios, and proactive asset efficiency efforts are bearing fruit, as demonstrated by the recent bond demand forecasts where funds exceeded the targeted amount, confirming investor trust. HDC Hyundai Development Company plans to continue sustainable growth and responsible management based on thorough crisis management and financial stability.
◇ Sales guidance of 4.3 trillion won presented
HDC Hyundai Development Company has laid the groundwork for strengthening its core competitiveness. Last year, through various achievements—such as rising performance, reduced contingent liabilities, certification as an excellent company in service quality in Korea, and an upgrade in credit ratings from the three major credit rating agencies—it regained trust from external institutions, including customers.
HDC Hyundai Development Company recorded sales of 4.2114 trillion won last year, meeting its guidance, and has now set this year’s sales guidance at 4.3059 trillion won. With plans to supply over 10,000 housing units and the phased development of the Cheonan I-Park City, which will include over 6,000 housing units and large-scale complex development projects such as the Seoul Won I-Park and Paju Medical Cluster, stable performance growth is expected.
In addition, HDC Hyundai Development Company has set a new contract target of 4.6981 trillion won. In particular, the company plans to actively pursue urban complex development, self-development projects, and urban maintenance projects centered around metropolitan areas. HDC Hyundai Development Company has already exceeded cumulative contract amounts of 2 trillion won in urban maintenance projects this year. In March, it won contracts worth 4.369 billion won for the redevelopment of the Gangwon Wonju Dangjeong district, 4.196 billion won for the redevelopment of the Busan Gwang-an District 4, 4.453 billion won for the Busan Yeonsan District 10 redevelopment, and 9.244 billion won for the Yongsan Maintenance Site Zone 1, totaling 22.262 billion won in urban maintenance projects. This has already surpassed last year's urban maintenance project contract amount of 1.3331 trillion won.
A representative from HDC Hyundai Development Company said, "Last year, despite uncertain external management conditions, HDC Hyundai Development Company achieved solid results. In 2025, based on stable contract performance through core competitiveness, we will further strengthen the company's fundamental structure and demonstrate value through achievements."
◇ Credit ratings for the entire construction industry elevated…Reflecting proactive risk management and stable contracts
The most prominent achievement is the upgrade in credit ratings. Last year, during the regular evaluations by credit rating agencies, all three agencies simultaneously upgraded HDC Hyundai Development Company’s credit rating, and this year, banks such as Woori Bank, KB Bank, and Hana Bank have also upgraded their credit ratings during regular assessments. The recovery of contracts and supplies, along with a reduction in contingent liabilities from project financing (PF), has been noted as effective in improving credit ratings.
HDC Hyundai Development Company began managing contingent liabilities from 2022, reducing the contingent liabilities related to project financing (PF) to about 2.204 trillion won by the end of last year, and plans to manage it to below 1 trillion won by 2025. Meanwhile, liquid assets (including short-term financial products) increased to approximately 1.01 trillion won by the end of last year, a rise of about 43% from the previous year.
The improvement in the financial structure is expected to have a positive impact on HDC Hyundai Development Company's capacity to promote development projects and secure new growth drivers in the future. As major complex development projects like the Seoul Won I-Park, Paju Medical Cluster, and Yongsan Maintenance Site Zone 1 begin to materialize, a stable financial structure is expected to be a key factor in enhancing the company's sustainability.
◇ Steady recovery in performance···Qualitative and quantitative growth in sales and operating profit
HDC Hyundai Development Company has recorded qualitative and quantitative growth in both sales and operating profit. Despite a challenging real estate market, in 2023, it maintained stable trends with sales of 4.1908 trillion won and operating profit of 195.3 billion won, and in 2024, sales are projected to be 4.2562 trillion won with operating profit of 184.6 billion won. The market expects to see increased sales and operating profit this year as well, and indeed, in the first quarter of 2025, sales totaled 905.7 billion won, with operating profit reaching 54 billion won, recording double-digit growth rates compared to both the previous quarter and the same period last year.
A representative from HDC Hyundai Development Company noted, "While continuing with performance recovery and improvements, operating profit in the first quarter has increased significantly compared to both the same period last year and the previous quarter, and the operating profit margin has also risen. This was achieved even amid the current real estate market situation due to HDC Hyundai Development Company’s innovations in construction systems and enhancement of technological competitiveness." He also expressed confidence regarding future performance, stating, "As highly profitable business sites begin generating revenue, performance increases are expected in the medium to long term."
◇ Investors take note as soundness strengthens···Stock price rises about 50% this year
As revenue growth becomes visible, HDC Hyundai Development Company’s stock price is also receiving positive evaluations in the market, showing an upward trend. Analysts suggest that the successful sales of the Seoul Won I-Park and the expected stable revenue generation from upcoming complexes are reflected in this trend. Despite fluctuations in the stock market due to tariffs from the U.S., its stock price rose significantly from 16,100 won at the close on Feb. 3 to a peak of 27,850 won on June 12, nearing a 52-week high. This performance stands out in the construction industry, as during the same period from Feb. 3 to Apr. 25, the KRX construction index only rose by 10% (from 583.48 to 643.34), while HDC Hyundai Development Company recorded the highest climb among the top 10 construction companies.
Market projections are even brighter. All 14 securities firms that released investment reports related to HDC Hyundai Development Company predict a rise in its stock price, and recently, KB Securities upgraded the target stock price from 31,500 won to 34,000 won. Considering the current stock price, there is still potential for additional growth.
◇ Foreign investment and pension funds showing strong interest…Full efforts to enhance shareholder value
Alongside stable financial results, the stock price has surged, attracting interest from foreign investors and pension funds. The equity ratio held by pension funds rose from 5.64% at the end of 2023 to 13.14% by the end of June 2025. Foreign investors increased their equity from about 10.5% before the sales of the Seoul Won I-Park in October 2024 to 13.94% by the end of June 2025.
HDC Hyundai Development Company is working hard to enhance shareholder value, aligning with the trends of increasing equity by major institutional investors, including foreign investors and pension funds. It has recently demonstrated a consistent policy of stable shareholder returns through regular dividend increases. Starting with dividends of 500 won per share (a payout ratio of 9.6%) in 2018, cash dividends rose to 600 won in 2020 and 700 won in 2023. In the regular shareholders’ meeting in March 2025, a dividend of 700 won per share was resolved, with a payout ratio reaching 28.3%.
HDC Hyundai Development Company is not only expanding dividends but also revising its dividend policy. It has formalized a medium-term policy to distribute over 20% of its net income on a separate basis for the next three years, and the dividend criteria have been changed through amendments to its articles of incorporation to allow for predictable dividend forecasting from the shareholders' perspective. This March, the board of directors resolved to repurchase approximately 100 billion won worth of company stock, totaling 508,646 shares, further solidifying its commitment to enhancing shareholder value.
◇ Company bond demand forecast successful···Total of 232 billion won attracted
The positive outcomes of this financial soundness are evident in the market. HDC Hyundai Development Company secured a total investment demand of 232 billion won during its bond demand forecast held on June 20, proving its ability to maintain a stable financing capability. This demand forecast was divided into 2-year and 3-year bonds, raising 70 billion won and 50 billion won respectively. The results indicated that 168 billion won participated in the 2-year bond and 64 billion won in the 3-year bond, achieving an average competition rate of 1.9 to 1.
Consequently, HDC Hyundai Development Company is planning to increase the originally planned bond issuance of 120 billion won to a total of 151 billion won. The 2-year bond will be issued at 98 billion won, and the 3-year bond will be issued at 53 billion won, with anticipated issuance rates of 3.647% for the 2-year bond and 4.195% for the 3-year bond. The spreads against the market average rates are evaluated at +4 basis points and +31 basis points respectively, securing interest rate competitiveness despite uncertainties across the construction industry.
A representative from HDC Hyundai Development Company said, "Even amid the overall cool atmosphere in the construction industry, we have secured investor trust based on our capabilities as a developer and financial soundness." They added, "Based on a continuous trust relationship with the market, we will continue to pursue stable financial management strategies in the medium to long term."