HDC is the holding company of the HDC Group, the entity that remained after the operating business was spun off in a 2018 corporate split. It earns money from brand and trademark royalties, dividends from subsidiaries, and property operations, but most of its real value sits in its stakes in listed subsidiaries HDC Hyundai Development (41.52%) and HDC Labs (39.99%), along with holdings in unlisted affiliates. Because accounting rules require HDC Hyundai Development to be fully consolidated, the group's consolidated revenue of ₩6.6 trillion and operating profit of ₩648.9 billion are effectively driven by the construction subsidiary. Marking its 50th anniversary in 2026, the group is rebranding its lifestyle and retail affiliates under the IPARK name, and it is returning cash to shareholders through a year-end dividend of ₩450 per share and treasury share purchases. What stands out is a classic holding-company discount: the combined stake value in the two listed subsidiaries alone is roughly ₩584.7 billion, close to half of HDC's own market cap of about ₩1.27 trillion, and once unlisted stakes and net cash are added, net asset value could sit well above the market cap. The caution is that a prolonged slowdown in construction and housing could depress the core subsidiary's earnings and share price, lowering NAV itself, while the discount can persist for a long time without a catalyst.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 6.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 19.7% lower than a year earlier.
- ROE is 10.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 9.8%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Chung Mong-gyu 33.68% (individual)
Controlling bloc incl. related parties 42.18%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis
- HDC was launched as the surviving entity of the HDC Group after the operating business (HDC Hyundai Development) was spun off in a 2018 corporate split.
- On its own it earns money from brand and trademark royalties, dividends from subsidiaries, and property and management-support operations, but most of its underlying value comes from the subsidiary stakes it holds.
- The core holdings are the listed subsidiaries HDC Hyundai Development (housing, construction and development; 41.52% stake) and HDC Labs (smart-home and building-management AIoT; 39.99% stake), alongside unlisted affiliates such as Tongyeong Eco Power (LNG combined-cycle power generation), HDC Hyundai EP (chemicals and materials), HDC I-Park Mall and HDC Shilla Duty Free (retail and duty-free), HDC I&Cons, and HDC Youngchang.
- In accounting terms, HDC controls HDC Hyundai Development (41.52%) and consolidates it in full, so HDC's consolidated revenue of ₩6.6 trillion and operating profit of ₩648.9 billion are effectively dominated by the construction subsidiary.
- In other words, the headline figures look like those of a construction company, but from an investment standpoint this is a holding company that owns a collection of subsidiary stakes.
- The latest close was ₩20,250 and the market cap is ₩1.2 trillion.
- The price sits below its 20-day line (₩20,792) and below its 60-day line (₩23,339).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing the strength of gains and losses over the past 14 days on a 0-100 scale) is 43.3, a neutral level.
- The one-month change is -1.0%, the three-month change is -22.4%, and the price is -32.8% from its 52-week high.
- Relative strength versus the KOSPI is 37 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 64% of all stocks by strength.
- Over the past three months it lagged the index by 39.8%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- On a consolidated basis the P/E ratio (how many times one year's earnings the share price represents) is 4.02x and the P/B (how many times book equity) is 0.41x, so the absolute figures are low.
- For a holding company, however, reading these at face value can mislead.
- Consolidated net profit swings widely with the construction subsidiary's cycle, and book equity carries subsidiary stakes at low historical cost, which makes the P/B look higher than it really is.
- For a holding company it is more appropriate to look at the market value of its holdings (NAV) than at P/E or P/B.
- Profitability is decent for a holding company, with an ROE (how much is earned on equity in a year) of 10.3% and an operating margin of 9.8%.
- The debt ratio (debt relative to equity) shows as high at 434%, but that reflects the full consolidation of construction and power subsidiaries, which brings project-level debt onto the books, and it differs in character from the holding company's own standalone finances.
- The interest coverage ratio of 3.31x means operating profit covers interest, and the current ratio of 150.6% leaves room on short-term liquidity.
- The company continues to pay a year-end dividend of ₩450 per share (a dividend yield of about 2.1%).
- Over five years, revenue grew steadily from ₩4.78 trillion in 2021 to ₩6.58 trillion in 2025, an annual pace of 8.3%, while net profit attributable to controlling shareholders improved sharply for two straight years, from a loss of ₩5.1 billion in 2022 to ₩113.1 billion in 2023, ₩146.4 billion in 2024, and ₩301.0 billion in 2025 (2025 net profit +105.6%, operating profit +88.2%).
- This reflects a recovery from a low point, with earnings power moving up.
- In the first quarter of 2026, however, consolidated revenue fell 19.7% year on year (reflecting the slowdown in construction and housing), yet operating profit rose 16.5% and net profit was almost flat at -2.1%.
- In other words, the top line is shrinking but improving profitability offsets it, keeping the size of earnings stable.
- If this quarter's trajectory is carried through the year, net profit is estimated to land at broadly the same level as last year (₩301.0 billion), and on that forward basis the earnings multiple against the current market cap stays low.
- That said, holding-company earnings depend on the construction subsidiary's cycle, so it is more important to watch changes in the value of subsidiary stakes than this figure alone.
- 2026 marks the HDC Group's 50th anniversary, and a rebranding is underway that changes the lifestyle and retail affiliates' names from HDC to IPARK (HDC Hyundai Development's marketing name is also shifting to IPARK Hyundai Development).
- On shareholder returns, the company set a year-end dividend of ₩450 per share (about ₩22.3 billion in total), and recent disclosures repeatedly report trust arrangements and holdings related to treasury share purchases, which reads as an ongoing return of cash through treasury stock.
- These moves are consistent with a value-up (corporate-value enhancement) trend set against a low P/B.
- The point to watch is clear.
- Because HDC is a holding company, whether it is undervalued should be judged by the value of its holdings (NAV) rather than by consolidated P/E or P/B.
- The combined stake value of the two listed subsidiaries (HDC Hyundai Development and HDC Labs) alone comes to about ₩584.7 billion, close to half of HDC's own market cap of about ₩1.27 trillion; add stakes in unlisted subsidiaries such as Tongyeong Eco Power, HDC Hyundai EP, duty-free and retail, plus net cash and brand royalties, and the real net asset value is likely to sit well above the market cap.
- In short, this can be read as a classic holding-company discount.
- The stronger case is one where the discount narrows through a recovery in subsidiary earnings and stronger returns such as treasury share cancellations and higher dividends; the weaker case is one where a prolonged construction and housing slowdown depresses the core subsidiary's (HDC Hyundai Development) earnings and share price, lowering NAV itself.
- It is also worth remembering that a holding-company discount can persist for a long time without a catalyst such as shareholder returns or governance improvement.
🔎 Valuation vs peers Undervalued
Compared through the relationship between the holding company and its core subsidiaries; HDC Hyundai Development and HDC Labs are the listed subsidiaries HDC holds, and their market value is central to HDC's NAV.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HDC Hyundai Development Company | 7.18x | 0.35x | 4.92% |
| HDC Labs | 16.11x | 0.74x | 4.60% |
(a) Because this is a holding company, using the consolidated P/E of 4.23x and P/B of 0.44x directly as evidence of undervaluation would be misleading. Consolidated earnings swing widely with the construction subsidiary, and book equity carries subsidiary stakes at low historical cost, which makes the P/B look higher than it really is. (b) Viewed instead through the market value of its holdings (NAV), the stake value of the two listed subsidiaries alone explains about half of the market cap, and once unlisted subsidiaries and net cash are considered, the market cap sits below net asset value in a classic holding-company discount. (c) Last year's consolidated net profit (₩301.0 billion) rose sharply on a cyclical recovery, so trailing multiples print low, and first-quarter earnings this year held up broadly, keeping the multiple low on a forward basis as well. It therefore reads as Undervalued, but the basis is the discount to NAV rather than the low P/E itself. Note that a holding-company discount can persist for a long time without a shareholder-return or governance catalyst.
Price history Close · MA20 · MA60
The latest close is ₩20,250 and the market capitalization is ₩1.2 trillion. The price sits below its 20-day moving average (₩20,792) and below its 60-day moving average (₩23,339). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 43.3, a neutral level. The one-month change is -1.0%, the three-month change is -22.4%, and the position relative to the 52-week high is -32.8%. Relative strength versus the KOSPI is 37 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 36% of all stocks. Over the past three months it lagged the index by 39.8%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -39.82% / 6M -27.02% / 12M -62.46%
Key metrics vs sector median
Valuation
The P/E of 4.02x is below the sector median (12.68x). The P/B of 0.41x is below the sector median (0.66x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Profitability & financials
Return on equity (ROE) is 10.3%, above the sector average (6.0%). The operating margin is 9.8%. The debt ratio is 434.3%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.9B | $4.1B | $4.4B | +6.20% ↑ faster |
| Operating profit | $207.2M | $228.5M | $430.1M | +88.24% ↑ faster |
| Net profit | $74.9M | $97.0M | $199.5M | +105.65% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.2B | $3.3B | $3.9B | $4.1B | $4.4B |
| Operating profit | $244.4M | $105.1M | $207.2M | $228.5M | $430.1M |
| Net profit | $75.2M | -$3.4M | $74.9M | $97.0M | $199.5M |
| Revenue CAGR | 4-yr avg 8.34% | ||||
Revenue rose 6.2% year over year (2023 ₩5.9 trillion → 2024 ₩6.2 trillion → 2025 ₩6.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 88.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.3%. The two-year revenue CAGR is 5.6%. In the most recent quarter (Q1 2026), revenue was 19.7% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 10.3% points to solid profitability.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-29EarningsFiled the Q1 2026 quarterly report (as the representative company). Consolidated revenue of about ₩1.26 trillion, operating profit of about ₩180.3 billion (+16.5% year on year), and net profit attributable to controlling shareholders of about ₩107.2 billion (-2.1% year on year); despite falling revenue, better profitability kept earnings intact.Confirms that earnings power held up even as the top line shrank. A basis for the holding company's forward earnings estimate. Source
- 2026-05-26UpdateA subsidiary disclosed the termination of a single sales and supply contract as a material management matter. This concerns the affiliate's business unit, not the holding company itself.It may weigh on short-term sentiment, but the impact on the overall value of the holding company is limited. Source
- 2026-06-08FilingDisclosure related to the shareholdings of the largest shareholder and to large-holding reporting (reflecting stake changes from treasury share purchases and holdings).Stake-change information that supports the trend of returning cash through treasury stock. Source
- 2026-06-01FilingMaterial-matter disclosure of a board resolution on a treasury share purchase trust agreement. Signals continued shareholder returns through treasury share purchases.A shareholder-return signal consistent with value-up (corporate-value enhancement), and a point to watch for whether the holding-company discount narrows. Source
- 2026-05-29FilingFiled the large-business-group status disclosure (Q1 2026, as the representative company), disclosing the HDC Group's affiliate structure and stakeholding relationships.Official confirmation of the subsidiary stake structure (the basis for calculating NAV). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08OwnershipLargest-shareholder ownership change report (amended)
- 2026-06-08OwnershipAmended filing
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-27OwnershipLargest-shareholder ownership change report
- 2026-05-27OwnershipOwnership-change filing
- 2026-05-26Single supply/sales contract
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.