[Featured Stocks] Hyundai and Kia Motors Rise for 3 Consecutive Trading Days on Expectations of Second Half Profit Improvement Driven by New Car Effects

[Asia Economy Reporter Eunmo Koo] Hyundai Motor and Kia Motors have continued their upward trend, rising for three consecutive days. This is interpreted as reflecting expectations for profit improvement in the second half of the year due to effects from new car models.

As of 9:46 a.m. on the 25th, Hyundai Motor was trading at 170,000 KRW, up 5.26% (8,500 KRW) from the previous trading day. At the same time, Kia Motors was also trading at 44,400 KRW, up 6.86% (2,850 KRW) from the previous day, continuing its three-day consecutive rise.

With economic activities normalizing in major countries, Hyundai Motor and Kia Motors are expected to expand their market share in key markets from the second half of the year through deferred demand and new car effects. Dongha Kim, a researcher at Hanwha Investment & Securities, analyzed, “An increase in corporate value is expected due to profitability improvement from new car effects and increased Genesis sales, as well as the full-scale growth of eco-friendly vehicles.”

Jinwoo Kim, a researcher at Korea Investment & Securities, also stated, “The core driver of Hyundai Motor Group’s stock price rise is cost reduction led by the new platform and mix improvement led by Genesis,” adding, “The new platform will drive the low profitability of small and medium-sized models, which are currently eroding overall profitability.”

News that Hyundai Motor ranked first in new car advanced technology satisfaction in a U.S. market survey also appears to have influenced the stock price rise. According to U.S. market research firm J.D. Power on the day, Hyundai Motor received 556 points on the Tech Experience Index, which has a perfect score of 1,000 points, earning the highest score among general brands. Kia Motors followed with 538 points.

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