In Hyundai Department Store Group, the four listed affiliates of the group, including the holding company Hyundai GF Holdings, Hyundai Department Store, Hyundai Green Food, and Handsome, each held a board meeting and presented returns on equity (ROE) and price-to-book ratio (PBR) goals. It was announced on the 8th that it had established and announced a plan to increase corporate value for the next three years, including ▲expanding cash dividends, including implementing semi-annual dividends, and ▲cancelling treasury stocks.
A group official explained, “In order to meet the government’s value-up policy to increase shareholder return and increase undervalued corporate value, four major affiliates within the group have established a plan to improve corporate value.”
According to each company’s value-up plan announced this time, the holding company, Hyundai GF Holdings, plans to increase dividend income by increasing control over blue-chip subsidiaries. The mid- to long-term goal was to achieve a return on equity investment of more than 4%, which exceeds the market interest rate. Based on this, the plan is to carry out a semi-annual dividend of more than 10 billion won, separate from the existing settlement dividend, starting next year, and gradually increase the total annual dividend payment to 50 billion won by 2027. Last February, Hyundai GF Holdings established a mid- to long-term dividend policy of paying a minimum dividend of 150 won per share.
Hyundai Department Store plans to invest 1.2 trillion won in The Hyundai Gwangju and 700 billion won in Busan Premium Outlet. Based on this, like Hyundai GS Holdings, the plan is to carry out a semi-annual dividend of more than 10 billion won separately from the existing settlement dividend starting next year, and gradually increase the total annual dividend payment to 50 billion won by 2027. In particular, the company plans to strengthen shareholder returns by canceling 3.3% of its treasury shares (6.6%) within the year.
Hyundai Green Food, a comprehensive food company in the group, has a strategy to achieve both growth and profitability by strengthening the profitability of its main business, group meal service, and expanding investment in future growth businesses such as care food. It also announced a plan to purchase and cancel 10.6% of its shares at an equal rate of 2% each year by 2028.
Handsome, a fashion specialty company of Hyundai Department Store Group, plans to focus on strengthening its profit power by pursuing three mid- to long-term growth strategies, including ▲ strengthening global competitiveness such as time and system, ▲ expanding import portfolio, and ▲ expanding lifestyle areas such as beauty.
Meanwhile, 10 listed affiliates of Hyundai Department Store Group, including Hyundai GF Holdings, Hyundai Department Store, Hyundai Home Shopping, Hyundai Green Food, Handsome, Hyundai Livart, Zinus, Hyundai Everdigm, Hyundai Easy Well, and Daewon Gangup, suddenly eliminated dividends in March. For this reason, the existing ‘previous dividend record date, later dividend amount confirmation method’ was changed to ‘earlier dividend amount, later dividend record date confirmation method’.
Source: www.nextdaily.co.kr
