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Ipark Hyundai Development · 294870 · Construction

Ipark Hyundai Development: Q3 2026 Preliminary Operating Profit Up 127.1% Year on Year

Why this report

Written after:

Ipark Hyundai Development reported preliminary Q3 2026 consolidated operating profit of ₩165.8B, up 127.1% from a year earlier, on revenue up 2.8%. This supports the earlier view of improving margins, while the model's fair value estimate is now far lower than in the previous report.

Written Oct 22, 2026 · Data as of Oct 21, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-22 the company filed preliminary consolidated results for Q3 2026 (July to September). The figures are provisional and may differ from final ones.

Revenue was ₩1,082.1B, up 2.8% from ₩1,053.0B a year earlier and up 18.3% from ₩914.6B in Q2 2026. Operating profit was ₩165.8B, up 127.1% from ₩73.0B a year earlier and up 35.1% from Q2. That implies a quarterly operating margin of about 15.3%, our own calculation from the filed figures.

Pre-tax profit from continuing operations was ₩157.4B, up 165.2% year on year. Net income was ₩111.3B, up 179.2% from ₩39.8B, and all of it belongs to the parent's owners.

For the first nine months, revenue was ₩2,670.7B, down 14.5% from ₩3,122.0B. Operating profit was ₩368.6B, up 77.9% from ₩207.3B. Net income was ₩244.3B, up 66.5% from ₩146.7B.

The same day the company also filed an acquisition of shares in another company. The size of that deal is not available in the data we have, so we do not treat it as a driver of this note.

What it changes for the thesis

The previous report described improving profitability, with operating margin rising from 4.3% in 2024 to 6.0% in 2025 and 8.7% in the trailing twelve months to H1 2026. The Q3 figures extend that pattern: profit rose sharply while revenue grew only modestly.

The report also said the data showed no clear growth story. That still holds in part. Nine-month revenue is down 14.5%, so the profit gain comes from margin, not from higher sales. Whether the Q3 margin of about 15.3% is sustainable cannot be judged from one provisional quarter.

The cautions in the previous report, such as debt guarantees for other parties and the disclosure designation of 2026-09-07, are not addressed by this filing and remain open.

What it changes for the valuation

The share price was ₩20,800 on 2026-10-21, with a market cap of ₩1.4T. The data shows 7.4x earnings, 0.4x book value and a 3.4% dividend yield. These figures are based on results to H1 2026 and do not yet include Q3.

The model's DCF (5.9% rate, trailing twelve months to H1 2026) now gives a base estimate of ₩34,809 per share, with a bear case of ₩3,804 and a bull case of ₩99,313. The previous report showed ₩145,876 base, ₩84,603 bear and ₩264,998 bull. These are model estimates based on the assumptions shown, not targets.

The estimates are much lower than before, though the rate moved only from 5.8% to 5.9% and the period label is unchanged. The data does not explain the change, and enterprise value is now shown at ₩2.57T against ₩1.08T before, which may relate to how borrowings are counted. The base case is still above the share price, but the bear case is far below it, so the range is very wide and highly sensitive to assumptions. Q3 results are not yet in the model.

Closing view

The preliminary Q3 results confirm the earlier picture of rising profitability: operating profit more than doubled from a year earlier while revenue was little changed, and nine-month sales are lower. The figures are provisional, and the acquisition of shares filed the same day has no disclosed size.

The model's fair value range has moved sharply lower and is now very wide, which shows how much the estimate depends on assumptions. It should be read as one input, alongside the earlier cautions on guarantees and disclosure, not as a conclusion about the shares.

Model estimate of fair value

Bear
₩3,804
-84%
Base
₩34,809
+42%
Bull
₩99,313
+305%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 5.9%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 22, 2026Update noteEarningsIpark Hyundai Development: Q3 2026 Preliminary Operating Profit Up 127.1% Year on Year
  2. Oct 13, 2026InitiationStart of coverage (300 largest)Ipark Hyundai Development: Higher Margins and Low Multiples, Alongside a Wide Range of Model Estimates

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information