[Click eStock] "Hyundai Motor Group, Annual Target of 7.54 Million Units... Expected to Resolve Undervaluation of Corporate Value"

[Asia Economy Reporter Oh Ju-yeon] Regarding Hyundai Motor Group's sales target of 7.54 million units set for this year, SK Securities evaluated it as a 'profitability-focused strategy' and analyzed on the 3rd that if performance improvement and successful investments accompany, the valuation discount will be resolved.

Hyundai Motor announced through a disclosure the previous day that this year's sales target is set at 4.58 million units (3.5% increase from the previous year), and Kia Motors at 2.96 million units (6.8% increase). Last year's annual global sales were 7.19 million units, a 2.8% decrease from the previous year, and also fell short of the early-year plan. In the New Year's address, 2020 was declared as the 'first year of securing leadership in future markets,' including details such as electrification, hydrogen fuel cell vehicles, autonomous driving, and mobility.

Researcher Kwon Soon-woo analyzed, "The conservative sales target reflects the slowdown in global automobile demand," and added, "Amid expected intensified competition among companies, it is judged that the focus was on profitability rather than quantitative growth."

He continued, "The conservatively announced 2020 sales target is a short-term burden on stock prices and earnings forecasts," and explained, "The speed of cost improvement in the fourth quarter and thereafter is expected to be an important point."

Research and development and investment for sustaining the business in the mid to long term are evaluated positively. Researcher Kwon emphasized that whenever Hyundai Motor Group's plans are concretized?operating a total of 44 electrified vehicles including 11 dedicated electric vehicle models by 2025, expanding the hydrogen fuel cell vehicle industry ecosystem, promoting commercialization development of autonomous driving in 2023, and mass-producing it in the second half of 2024?the corporate valuation discount will gradually be resolved.

This content was produced with the assistance of AI translation services.