Hyundai Motor, Can It Accelerate with Enhanced Competitiveness in Hydrogen Vehicles?

Rapid Earnings Recovery Since Last Month Drives Rise
Nikola Surges 16% Yesterday on Positive Hydrogen Vehicle Technology Reviews
Brokerage Firms Say "Hydrogen Vehicle Competitiveness Will Be Reassessed by the Market"

[Asia Economy Reporter Minji Lee] Hyundai Motor Company is gaining attention following strong earnings and its competitiveness in hydrogen vehicles.

As of 12:30 PM on the 11th, according to the Korea Exchange, Hyundai Motor was traded at 169,500 KRW on the KOSPI market, down 0.3% from the previous close. The slight decline is interpreted as profit-taking selling after the stock price surged 16% the day before. At the same time, companies related to Hyundai Motor's hydrogen fuel cell value chain, which had surged the previous day, such as Hanon Systems (1%), Mando (0.0%), Hyundai Mobis (-1%), Kia Motors (-1%), Iljin Diamond (-2.4%), and Doosan Fuel Cell (-0.2%), also continued to show slight declines.

Since last month, Hyundai Motor's stock price has shown an upward trend, supported by rapid earnings recovery despite the novel coronavirus disease (COVID-19). Expectations for new car launches in the second half of the year further boosted the stock price, which surged about 50% from last month until the 7th of this month. However, the previous day's 16% surge reflected the market's re-evaluation of Hyundai Motor's competitiveness in hydrogen vehicles rather than earnings.

Prime Minister Chung Sye-kyun is examining Hyundai Motor Company's hydrogen car 'Nexo' at the 'Hydrogen Mobility+ Show' held on the 1st of last month at KINTEX in Goyang-si, Gyeonggi-do.
Photo by Kim Hyun-min, Goyang kimhyun81@

Lee Sangheon, a researcher at IBK Investment & Securities, said, "The reason Hyundai Motor could surge more than 10% at once was due to praise from Trevor Milton, founder of the U.S. hydrogen truck company Nikola," adding, "Although there was also the material of newly launching the electric vehicle brand Ioniq, the proposal for collaboration on hydrogen trucks was effective."

Milton recently pointed out in an interview with a media outlet, "The market is not properly recognizing Hyundai Motor's high capabilities in hydrogen vehicles," criticizing that the market is not seeing Hyundai Motor correctly. Referring to collaboration with Hyundai Motor, he claimed, "Hyundai Motor has the highest quality hydrogen fuel cells, and if cooperation is realized, it could build a company worth more than 100 billion dollars."

The securities industry evaluated that a turning point has been established where Hyundai Motor's capabilities in the next-generation automobile industry can be re-evaluated. Jung Yongjin, a researcher at Shinhan Financial Investment, said, "In the capital market, the capabilities for next-generation automobiles have not been reflected in stock prices, and only the growth potential of new companies has been highlighted," adding, "We expect valuation expansion regarding the technological superiority and capabilities of traditional automobile companies."

The market also analyzed that the possibility of cooperation with Nikola should be closely watched. Although Hyundai Motor has rejected Nikola's several collaboration proposals, it is expected that the possibility of cooperation with Nikola cannot be excluded for entry into the U.S. market. Lee Jaeil, a researcher at Eugene Investment & Securities, explained, "Hyundai Motor is jointly developing hydrogen vehicles with Audi, but compared to the strong competitor Toyota, the range of alliance partners is narrow," adding, "If Nikola is chosen as a partner in the North American market, it could strengthen global hydrogen vehicle leadership and lead to additional stock price increases for domestic companies belonging to the related value chain."

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