[THE INVESTOR] Hyundai Development Company
’s spin-off will boost the value of its real estate developing business, said DB Financial Investment on Dec. 6, maintaining a “buy” recommendation and 48,000 won (US$43.96) target price.
It is seeking to strengthen control of major stakeholders but investors should rather focus on the rise of its value as a developer, said analyst Cho Yun-ho.
The newly spun off company HDC Hyundai Industrial Development is likely to perform as a regular construction company and the remaining company will retain real estate development business, noted the analyst.
HDC will generate stable cash flow through dividends from affiliates and additionally make profits from investing in properties, which will improve its valuation, said Cho.
By Hwang You-mee (email@example.com