South Korean real estate developer and builder Hyundai Development Company said Friday that it has seen an almost 90 percent surge in its share prices on upbeat earnings and positive credit ratings this year.

As of Aug. 26, the stock price closed at 26,700 won ($20), an 87.9 percent growth from the beginning of this year. During the same period, the benchmark Kospi fell 5.44 percent. Among the nation’s top 10 construction companies, the growth rate was the highest.

Amid the recent rally of the stock, five securities firms raised their target price to 32,500 won this month.

Foreign ownership more than doubled to 17.79 percent in the second quarter compared to a year ago. The nation’s largest institutional investor National Pension Service raised its shares by 2 percentage points to 8.59 percent.

One of the key reasons behind the strong uptrend is the change in the company’s A-rated credit rating from “negative” to "stable” by three major credit rating agencies -- Korea Investors Service, Korean Ratings and Nice Investors Service.

This indicates the company has strengthened its business stability by securing new contracts, including large-scale housing supplies, since last year. Its contingent liabilities tied to project financing reduced from 2.7 trillion won in 2021 to 1.6 trillion won in the second quarter of this year.

Its upbeat earnings also affected the share price positively. In the first half of this year, the company posted 2.244 trillion won in sales and 95.4 billion won in operating profits.

This year, the company is expected to report 4.3 trillion won in sales and 238.9 billion won in operating profits, largely driven by more large-scale projects.

“In addition to the improved credit ratings this year, stable business performance and other financial achievements were the key drivers behind the uptrend in stock prices. Going forward, we will continue to enhance profitability and financial structure while improving investor relations and shareholder value,” said an HDC official.