April 27, 2024

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[THE INVESTOR] Hyundai Development Company decision to respurchase its own stocks for the second time this year will raise shareholder value, said Dongbu Securities on April 11, maintaining a “buy” recommendation and 61,000 won (US$53.18) target price. 

The company announced that it will acquire 1.5 million shares, which will increase its stake to 7 percent. 

The stock price has fallen about 10 percent from January when it announced its repurchase plans, as investors are expecting a decline in apartment, said analyst Cho Yun-ho. HDC has concluded that its stocks are undervalued and decided to buy its own stocks, explained the analyst. 

As overseas orders have gained attention, interest in HDC that is heavily focused on domestic housing has waned, said Cho. Its stocks, however, are still attractive, and considering its construction projects it is unlikely that it will face slow growth, forecast the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)