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.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 236.5%).
- 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 4.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 7.4%.
- 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
- 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 ₩17,230 and market capitalization is ₩1.1 trillion.
- The price sits below the 20-day line (₩19,086) and below the 60-day line (₩21,020).
- With the price under both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (an auxiliary gauge that weighs upward against downward momentum over the past 14 days on a 0-100 scale) is 36.9, a neutral level.
- The one-month change is -12.2%, the three-month change is -15.8%, and the position versus the 52-week high is -29.4%.
- Relative strength against the KOSPI is 12 (on a 1-99 scale, computed from the past year's return versus the index with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 89% of all stocks by strength.
- Over the past three months it lagged the index by 37.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 7.18x and the P/B (how many times net assets the price represents) is 0.35x, 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 | 6.47x | 0.46x | 7.06% |
| Hyundai Engineering & Construction | 29.51x | 1.33x | 4.51% |
| Daewoo E&C | 0.00x | 1.94x | -27.25% |
(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 ₩17,230 and the market capitalization is ₩1.1 trillion. The price sits below its 20-day moving average (₩19,086) and below its 60-day moving average (₩21,020). 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 36.9, a neutral level. The one-month change is -12.2%, the three-month change is -15.8%, and the position relative to the 52-week high is -29.4%. Relative strength versus the KOSPI is 12 (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 11% of all stocks. Over the past three months it lagged the index by 37.2%. 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 -37.21% / 6M -48.47% / 12M -68.19%
Key metrics vs sector median
Valuation
The P/E of 7.18x is in line with the sector median (8.02x). The P/B of 0.35x is below the sector median (0.50x).
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.
Profitability & financials
Return on equity (ROE) is 4.9%, below the sector average (7.0%). The operating margin is 7.4%. The debt ratio is 236.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.4B | $2.4B | $2.2B | -9.28% ↓ slower |
| Operating profit | $129.4M | $122.4M | $164.8M | +34.65% ↑ faster |
| Net profit | $114.7M | $103.2M | $104.8M | +1.56% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.2B | $2.2B | $2.4B | $2.4B | $2.2B |
| Operating profit | $181.2M | $77.1M | $129.4M | $122.4M | $164.8M |
| Net profit | $117.0M | $33.4M | $114.7M | $103.2M | $104.8M |
| 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 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.
- The dividend yield, at 4.1%, is on the high side.
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
- 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.