Hyundai Department Store (069960) Investor presentation summary

Company overview

• Operates department stores, duty-free shops, and furniture businesses, with recent expansions including The Hyundai Gwangju and a planned merger with Hyundai Shopping in 2024.

• Department store division runs 15 stores and 9 outlets, with new openings planned in Busan and Gwangju by 2027.

• Duty-free division operates in key shopping districts and Incheon Airport, focusing on improving profitability and efficiency.

• Furniture division leverages a vertically integrated value chain and holds over 400 patents, expanding globally.

• Net sales and operating profit have grown steadily, with a 15.3% CAGR in net income from 2020 to 2023.

Financial and market performance

• ROE increased from 2.5% in 2020 to 4.2% in 2022, then slightly declined to 3.6% in 2023.

• PER and PBR have trended downward, with PBR at 0.26 in 2023, below the industry average.

• Market capitalization decreased from 1,758 bn won in 2021 to 1,212 bn won in 2023.

• Despite profit growth, stock price and valuation ratios have declined, highlighting the need for enhanced competitiveness and shareholder returns.

Shareholder return and governance

• Maintained stable dividends, increasing from 1,000 KRW/share to 1,300 KRW/share by 2024, with a target of 50 bn KRW total annual dividends by 2027.

• Plans to retire 3.3% of treasury shares within 2024 and implement semi-annual dividends.

• Shareholder return ratio ranged from 12.8% to 35.6% between 2020 and 2023.

• Compliance with key corporate governance indicators improved, with further enhancements expected after 2024 amendments.