SK Securities raised its target price for Hyundai GF Holdings (KRX: 005440) from 18,000 won to 20,000 won on June 26th, reiterating a buy recommendation. Based on the closing price of 14,840 won on June 25th, the new target implies upside of 34.8%.
Analyst Choi Kwan-soon at SK Securities argued that the market has yet to price in two key positives: the rising value of the company's stake in Hyundai Department Store, and an increasingly shareholder-friendly capital-return policy.
Hyundai GF Holdings' net asset value (NAV) has surged 56% — from 1.6 trillion won to 2.5 trillion won — driven by an expanded stake in Hyundai Department Store and appreciation in its share price. Over the same period, however, Hyundai GF Holdings' own share price rose by just 7.9%, leaving a substantial valuation gap.
The company's ownership of Hyundai Department Store has grown from 32.2% to 37.2% over the past year, lifting Hyundai Department Store's share of Hyundai GF Holdings' total NAV from 38.7% to 58.4%.
On shareholder returns, the company plans to buy back a total of 100 billion won worth of its own shares this year. It has already repurchased 3.42 million shares (worth 50 billion won) between February and April, with a further 50 billion won in buybacks scheduled after August — all earmarked for cancellation.
The dividend per share for 2026 is forecast at 441 won, implying a dividend yield of 3.0% at current prices. Combined with the buyback programme, the total shareholder return yield reaches 7.4%.
Separately, Hyundai GF Holdings is in the process of absorbing Hyundai Home Shopping as a wholly owned subsidiary through a comprehensive share exchange. This is to be followed by a spin-off of Hyundai Home Shopping's investment assets and a subsequent merger of that investment vehicle with Hyundai GF Holdings itself.
SK Securities projects Hyundai GF Holdings' revenues at 8.296 trillion won in 2026, with operating profit of 334 billion won.