Palantir's Influence on the Political Rallies in Korea & HD Hyundai's 34% Stake in Palantir Korea

• In this insight, we discuss the increasing importance of Palantir Technologies (PLTR US) on influencing the political rallies in Korea.

• In addition, we discuss how HD Hyundai's 34% ownership of Palantir Korea is likely to improve the positive sentiment on HD Hyundai.

• Our sum-of-the-parts valuation analysis of HD Hyundai suggests implied market cap of 11 trillion won or target price of 139,845 won per share (63% upside from current levels).

HD Hyundai's 34% Stake in Palantir Korea

In this insight, we discuss the increasing importance of Palantir Technologies (PLTR US) on influencing the political rallies in Korea. In addition, we discuss how HD Hyundai's 34% ownership of Palantir Korea is likely to improve the positive sentiment on HD Hyundai.

In March 2023, HD Hyundai (267250 KS) secured a 25.1% stake in Palantir Korea, a subsidiary of Palantir Technologies (PLTR US). As of end of 1H 2024, HD Hyundai had a 34% stake in Palantir Korea. Palantir Korea provides customized big data platform services to the public and private sectors in Korea. In this business alliance, Palantir operates big data platforms and provide software to its customers. HD Hyundai provides customers introductions and customers penetration strategy. Palantir Korea has numerous clients in Korea including HD Hyundai Group, DL E&C, LIG Nex1, and Kolon Benit.

Palantir has been one of the best performing stocks in the S&P500 in the past two years. In fact, when HD Hyundai secured a 25.1% stake in Palantir Korea in March 2023, Palantir Technologies' share price was trading at about US$8 per share. Palantir's share price has skyrocketed to $75 per share, up more than 800% since March 2023. Palantir's market cap has surged to $171 billion. In comparison, HD Hyundai's current market cap is 6.8 trillion won ($4.7 billion).

For now, the financials of Palantir Korea are not publicly available. However, Palantir Korea could file its financials publicly this year or next year on the dart.fss.or.kr system. Once there are some public filings of Palantir Korea's financials (which could show growing sales), there could be some increasing optimism on HD Hyundai's shares as well.

Palantir Technologies share price trend (Source: Google finance)

HD Hyundai SoTP Valuation Analysis

Our sum-of-the-parts valuation analysis of HD Hyundai suggests implied market cap of 11 trillion won or target price of 139,845 won per share, which represents a 63% upside from current levels.

HD Hyundai's investments in three listed companies (HD Korea Shipbuilding & Offshore Engineering (009540 KS), HD Hyundai Electric & Energy Systems, and HD Hyundai Marine Solution (443060 KS)) are worth 15 trillion won, which is more than twice as high as HD Hyundai's current market cap (6.8 trillion won).