SK Securities announced on June 26 that it is raising its target price for Hyundai GF Holdings from 18,000 won to 20,000 won, citing the anticipated impact of increased share value in Hyundai Department Store and expanded shareholder returns. The investment recommendation remains a 'buy.'
Choi Kwan-soon, a researcher at SK Securities, stated, "While Hyundai Department Store's strong performance in its department store and duty-free businesses has significantly boosted its stock price, Hyundai GF Holdings' stock has seen a more limited increase. We expect the effects of Hyundai Department Store's increased shareholding and rising stock price to be reflected in Hyundai GF Holdings' stock as well."
He added, "Hyundai GF Holdings' stake in Hyundai Department Store has grown from 32.2% last year to 37.2% currently, and the proportion of Hyundai Department Store in its net asset value (NAV) has risen from 38.7% to 58.4%. Consequently, Hyundai GF Holdings' NAV has increased by 56%, from 1.6 trillion won to 2.5 trillion won."
Choi also noted that Hyundai GF Holdings is planning to buy back 100 billion won worth of its own shares this year, with additional buybacks and cancellations planned for the second half. Considering a planned dividend of 441 won per share in 2026, the total shareholder return rate, including share buybacks and dividends, is expected to reach 7.4%.
He further mentioned that following the ongoing comprehensive stock exchange with Hyundai Home Shopping, a spin-off and merger will follow, which is expected to yield positive effects such as increased liquidity from the rise in the number of shares and enhanced dividend income from subsidiary integration.
* This article has been translated by AI.
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