IBK Investment Securities initiated coverage of Seobu T&D (KOSPI: 006730) on 25 June with a buy recommendation and a target price of ₩18,000 per share — implying roughly 87% upside from the stock's closing price of ₩9,650 on 24 June.
The target price was derived by applying a price-to-earnings multiple of 21.5 times to the firm's projected 2027 earnings per share of ₩824. That multiple incorporates a 20% discount to the average valuation of global property developer peers.
IBK forecasts Seobu T&D will report consolidated second-quarter 2026 revenue of ₩73.2bn, up 34.0% year on year, and operating profit of ₩18.8bn, a 67.7% increase — both record highs for the company. The brokerage expects inbound foreign tourist arrivals to grow by more than 15%, with the revenue per available room (RevPAR) at the company's Dragon City Hotel rising approximately 12.3%.
For the full year 2026, IBK projects hotel-division revenue of ₩191.6bn (up 11.9%) and operating profit of ₩77.2bn (up 32.0%), underpinned by rising demand from Chinese visitors and a persistent shortage of hotel supply in Seoul.
Beyond the near-term trading opportunity, IBK highlights two development projects as long-term growth drivers, both targeted for completion by 2030. The first is a mixed-use redevelopment of buildings 12 and 13 of the Najin Shopping Arcade in Yongsan — a central Seoul district — comprising basement eight floors through to 27 storeys above ground, with a total floor area of 74,841 square metres. Construction is scheduled to begin in October this year, and IBK estimates the project will generate annual office rental income of approximately ₩25bn once operational.
The second project involves redeveloping the Seobu Truck Terminal site in Sinjeong-dong, Yangcheon district, covering 104,245 square metres. The plans call for an urban logistics centre and a mixed retail complex, with projected annual earnings from the combined facilities of ₩50bn–₩55bn.
Should both legacy assets and new developments be fully operational, IBK estimates Seobu T&D's total operating income could approach ₩200bn by the early 2030s.