[Click eStock] "Hyundai Motor and Kia Motor Expected to Exceed Sales Volume Mainly Overseas in October"

[Asia Economy Reporter Oh Ju-yeon] KB Securities mentioned that Hyundai Motor Group's global wholesale sales, including China, in October recorded 651,000 units, a 0.2% decrease compared to the same month last year. Hyundai Motor's sales were 386,000 units, exceeding KB Securities' previous forecast by 6.7%, and Kia Motors' global wholesale sales were 266,000 units, surpassing expectations by 8.2%.

By region, overseas sales were better than expected compared to domestic sales. Hyundai Motor's overseas sales were 11.5% higher than expected, while domestic sales were 11.6% lower than expected. Kia Motors' overseas sales were 9.6% higher than expected, and domestic sales were 2.0% higher.

Researcher Kang Sung-jin analyzed, "The October sales performance exceeding expectations may have positively affected operating profit," adding, "If the existing assumptions on per-unit contribution profit for each company are simply applied, the excess sales volume compared to forecasts for Hyundai Motor and Kia Motors correspond to excess operating profits of 156.9 billion KRW and 119.8 billion KRW, respectively."

He added, "However, the fact that overseas sales were generally better than domestic sales could negatively affect per-unit contribution profit," and "Since the mix of overseas sales models and the number of sales in China, which are excluded from actual operating profit calculations, have not been disclosed, it is still difficult to determine the impact on operating profit forecasts."

Meanwhile, Hyundai Motor's domestic wholesale sales in October were 66,000 units, a 1.2% increase compared to the same month last year. Even when considering the change in the number of working days compared to October last year, the average daily sales volume increased by 11.8%. The models with the largest sales increases were the G80, Palisade, and GV80.

Kia Motors' domestic wholesale sales in October were 48,000 units, a 1.8% increase compared to the same month last year. The average daily sales volume also increased by 12.6% compared to the same month last year. The models with the largest sales increases were the Carnival, Sorento, and K5.

KB Securities maintained a 'Buy' investment rating for Hyundai Motor and Kia Motors and raised the target prices to 230,000 KRW for Hyundai Motor and 65,000 KRW for Kia Motors, respectively.

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