[Click eStock] "Kia Motors Expected to Show Strong Performance Due to Domestic Market Boom"

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] An analysis has emerged that Kia Motors is expected to show improved performance this year due to strong domestic demand.

Jang Munsu, a researcher at Hyundai Motor Securities, stated on the 6th, "Kia Motors' operating profit in the fourth quarter of last year was 571.3 billion KRW, a 49.6% increase compared to the same period last year," adding, "It is expected to exceed the consensus by 3.0%." Accordingly, the investment opinion was maintained as 'Buy' with a target price of 50,000 KRW.

The background of the strong performance is analyzed to be largely due to wholesale sales outside China, which increased by 9.3% year-on-year, amid a favorable exchange rate. In particular, increased operating rates driven by strong sales of the US Telluride and domestic Seltos, Mohave, and K7 models played a significant role.

Researcher Jang said, "This year, sales are expected to start domestically with models such as K5, Sorento, Carnival, and Sportage, followed by global expansion," adding, "sales growth through mix plus volume improvement is expected to become visible."

He also added, "Future strategies, which had been passive until now, such as eco-friendly vehicles and autonomous driving technology, are being concretized through mid- to long-term plans for eco-friendly vehicles like e-GMP, and investments in mobility and autonomous driving companies (APTIV JV), which is expected to reduce the discount gap compared to competitors."

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