[Click eStock] "Hyundai Motor to Miss Q4 Earnings Expectations...Stock Price Already Reflects"

[Image source=Yonhap News]

[Asia Economy Reporter Jihwan Park] Hana Financial Investment forecasted on the 10th that Hyundai Motor's fourth-quarter earnings last year would slightly miss market expectations due to sluggish domestic demand and increased labor costs. The investment opinion was maintained as 'Buy' with a target price of 160,000 KRW.

Researcher Seonjae Song of Hana Financial Investment stated, "The fourth-quarter earnings last year are expected to fall short of market expectations due to weak domestic demand and one-time labor cost expenses," adding, "However, attention should be paid to the fact that the recent stock price decline has resulted in a valuation of just over 0.4 times." The valuation of 0.4 times is among the lowest levels even compared to global automakers, indicating that the stock price has already reflected the fourth-quarter slump.

Researcher Song said, "Based on wholesale sales, sales in Korea and China decreased by 1% and 10% respectively in the fourth quarter of last year compared to the previous year, and one-time labor costs related to collective bargaining in the automotive sector amounting to 120 billion KRW are expected to be reflected."

Researcher Song emphasized, "Although the global demand environment this year is challenging, the luxury model cycle continuing from the GV80 (Q1), G80 (Q2~Q3) to the GV70 (last year to Q1 this year) will serve as momentum for market share growth and mix improvement."

He also added, "Given the low valuation and the upcoming momentum strengthening, the possibility of a rebound in the stock price is greater than further declines."

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