HDC Hyundai Development Company (294870) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
HDC Hyundai Development Company is a housing-focused builder that constructs and sells apartments under the 'IPARK' brand, running both high-margin in-house development - where it buys land directly, builds, and handles the sale - and higher-volume subcontract and contract work, where it builds on someone else's land and collects construction fees. In 2026 the order backlog saw gives and takes from a contract signing on April 29 and the partial termination of a contract on May 26, while a ₩700-per-share dividend was maintained, supporting a yield in the 3.8% range. What stands out lately is that a P/B of 0.38x - less than half of net assets - overlaps with an earnings rebound led by high-margin in-house development, making it look like an undervalued range on this year's earnings, whereas the top line is set to shrink for a while, so the earnings rebound hinges heavily on the completion and sales performance of in-house-development volume and on the housing market.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “General Construction” (Construction & Building Materials · Construction & Real Estate), a type typically read first through P/B.
General construction recognizes profits unevenly depending on order intake and project timing, and it rides project cycles hard, so a single year's earnings is a shaky basis for value. Price-to-book (P/B) — the share price against net assets such as land and construction holdings — is steadier and less whipsawed by that swing.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 9.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 34.7% lower than a year earlier.
- ROE is 4.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 8.9%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder HDC 41.52% (corporate)
Controlling bloc incl. related parties 43%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis Reading
HDC Hyundai Development Company is a housing-focused builder that constructs and sells apartments under the 'IPARK' brand. It makes money in two main ways. One is in-house development (proprietary projects), where the company buys land directly, builds apartments, and handles the sale - a structure with very high margins (the gross margin on its flagship in-house sites is in the 30% range). The other is subcontract and contract housing, where it builds apartments on someone else's land and collects a construction fee - lower margin but higher volume. Added to this are non-housing segments such as general building, civil engineering, and SOC. The core driver of results is recognizing profit by sequentially selling and completing large in-house-development sites the company holds or has secured, such as the Gwangundae Station-area mixed-use development.
The latest close is ₩22,700 and the market capitalization is ₩1.5 trillion. The price sits above its 20-day moving average (₩19,509) and above its 60-day moving average (₩19,880). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 66.8, a neutral level. The one-month change is +22.4%, the three-month change is +2.9%, and the position relative to the 52-week high is -7.0%. Relative strength versus the KOSPI is 42 (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 42% of all stocks. Over the past three months it outpaced the index by 15.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/E ratio (how many times one year's earnings the price represents) is 9.46x and the P/B (how many times net assets the price represents) is 0.47x, a price below even half of net assets. The dividend yield is 3.78% (₩700 per share), high among construction stocks. ROE (how much is earned in a year on equity) is still low at 4.9%, and the debt ratio (debt against equity) looks high at 236.5%, but this reflects the nature of the construction business, where advance payments, construction receivables, and project-related liabilities from ongoing work are booked large. In fact, the interest coverage ratio is 67.7x, meaning operating profit covers interest costs more than 67 times over - so the interest burden itself is amply manageable. That said, the P/E on last year's confirmed earnings does not capture the phase in which earnings turn upward, so it is closer to reality to look again at a figure that reflects this year's earnings.
On the surface, revenue is shrinking. Revenue in 2025 was ₩3.35 trillion, down 9.3% year on year, and first-quarter 2026 revenue also fell 34.7% year on year. This reflects the winding-down of construction-progress recognition on large contract sites started earlier. But the direction of earnings is the opposite. Operating profit in 2025 rose 34.7% to ₩248.6 billion, and first-quarter 2026 operating profit surged 48.4% year on year to ₩80.1 billion. The first-quarter operating margin of 16.2% is more than double the 2025 full-year figure (7.4%). Even as revenue falls, the rising share of high-margin in-house-development housing lifts earnings in a stepwise fashion. That said, net profit does not grow as fast as operating profit. Because the debt ratio is high, interest and financial costs offset part of the earnings, so first-quarter net profit fell slightly from a year earlier. Even so, with in-house-development volume set to complete and settle increasingly toward the second half, full-year net profit is expected to rise above last year's (about ₩158.1 billion). In that case the P/E on this year's earnings falls below last year's basis (7.7x), widening the undervaluation on a forward view.
In 2026, disclosures concentrate on orders and contracts and on shareholder return and governance. On April 29 a single sales and supply contract (amended) secured new contract volume, while conversely on May 26 a disclosure of the partial termination of a single sales and supply contract produced gives and takes in the order backlog. Both are classified as material disclosures and show the ebb and flow of volume that will become revenue. It held several IR events across April and May and filed the first-quarter 2026 report on May 15. On June 1 the corporate governance report and on May 29 the large-business-group status disclosure updated governance and group status. On the dividend side, the ₩700-per-share dividend was maintained, supporting a yield in the 3.8% range.
The point to watch is 'a cheap price with the direction of earnings turning upward.' A P/B of 0.38x - less than half of net assets - a dividend in the 3.8% range, and an operating-profit rebound led by high-margin in-house-development housing all overlap. With its P/B and dividend appeal ahead of large peer builders, we judge it to be in an undervalued range on this year's earnings. The cautions are also clear. The top line (revenue) is set to shrink for a while, so the earnings rebound hinges heavily on the completion and sales performance of in-house-development volume, and the earnings trajectory can wobble if the housing market, the sales environment, or the project-funding environment deteriorates. Given the construction industry's characteristically high-looking debt ratio, it is also sensitive to changes in the funding environment. In sum, it is strong when in-house-development completions proceed smoothly and the housing market holds up, and weak amid sales delays or a housing-market slowdown.
🔎 Valuation vs peers Undervalued
A peer set based on the business composition of housing-focused large builders (in-house development plus contract work).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| DL E&C | 7.54x | 0.52x | 9.35% |
| Hyundai Engineering & Construction | 33.60x | 1.37x | 4.52% |
| Daewoo E&C | 0.00x | 1.93x | -21.55% |
(a) Against the true peer set of housing-focused large builders, the P/B of 0.38x is lower than DL E&C (0.47x) and Hyundai E&C (1.55x), the cheapest position relative to net assets. (b) The 3.78% dividend yield is also at the upper end of the peer set, so the discount is large on both net assets and dividends. (c) The P/E of 7.71x on last year's confirmed earnings embeds the depressed earnings of a revenue-declining period, so on this year's basis (a P/E around 6x), where high-margin in-house development lifts earnings, the discount widens further. Whereas Daewoo E&C is in a loss and cannot produce a P/E, HDC HDC has a profit, a dividend, and an earnings rebound, so on balance we judge it to be in an undervalued range.
Price history Close · MA20 · MA60
The latest close is ₩22,700 and the market capitalization is ₩1.5 trillion. The price sits above its 20-day moving average (₩19,509) and above its 60-day moving average (₩19,880). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 66.8, a neutral level. The one-month change is +22.4%, the three-month change is +2.9%, and the position relative to the 52-week high is -7.0%. Relative strength versus the KOSPI is 42 (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 42% of all stocks. Over the past three months it outpaced the index by 15.4%. 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 +15.40% / 6M -11.22% / 12M -50.49%
Key metrics Computed vs sector median
Valuation
The P/E of 9.46x is above the sector median (6.86x). The P/B is 0.47x.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.8%, in line with the sector average (5.0%). The operating margin is 8.9%. The debt ratio is 129.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.5B | $2.6B | $2.4B | -9.28% ↓ slower |
| Operating profit | $137.2M | $129.7M | $174.7M | +34.65% ↑ faster |
| Net profit | $121.6M | $109.4M | $111.1M | +1.56% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.4B | $2.3B | $2.5B | $2.6B | $2.4B |
| Operating profit | $192.1M | $81.8M | $137.2M | $129.7M | $174.7M |
| Net profit | $124.0M | $35.4M | $121.6M | $109.4M | $111.1M |
| Revenue CAGR | 4-yr avg -0.11% | ||||
Revenue fell 9.3% year over year (2023 ₩3.6 trillion → 2024 ₩3.7 trillion → 2025 ₩3.3 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 34.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.1%. The two-year revenue CAGR is -3.4%. In the most recent quarter (Q1 2026), revenue was 34.7% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 3.1%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 9.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-29UpdateSigning of a single sales and supply contract (amended) - securing new contract construction volume.A factor that increases the order backlog to be recognized as future revenue. Positive for the mid-term top line and earnings. Source
- 2026-05-26UpdateTermination of a single sales and supply contract - a reduction in the order backlog from the partial termination of a contract.Part of secured volume drops out, a negative for the backlog. Negative in the short term. Source
- 2026-05-15EarningsFiling of the first-quarter 2026 report - confirms falling revenue and surging operating profit (margin improvement).Confirms in figures a 48.4% operating-profit gain despite a 34.7% revenue decline. Supports the earnings-rebound narrative. Source
- 2026-05-11IRAnnouncement of an IR event - continued communication with shareholders and the market.A channel for sharing results and business plans. Neutral to positive. Source
- 2026-06-01FilingDisclosure of the corporate governance report - updating governance status.Related to governance transparency. Neutral. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-04OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-26Single supply/sales contract
- 2026-05-26Disclosure
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-04-30Disclosure
- 2026-04-29Single supply/sales contract (amended)
- 2026-04-27Disclosure
📖 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.