[Click eStock] "Hyundai Glovis Falls Short of Q4 Earnings Expectations"

[Asia Economy Reporter Park Jihwan] Eugene Investment & Securities forecasted on the 28th that Hyundai Glovis's performance in the fourth quarter of this year will fall short of previous expectations due to the sharp decline in the KRW-USD exchange rate. The investment rating was downgraded from 'Buy' to 'Hold' (Neutral), and the target price was raised by 21.3% from the previous 150,000 KRW to 182,000 KRW.

Researcher Bang Minjin of Eugene Investment & Securities predicted, "Hyundai Glovis's consolidated sales for the fourth quarter are expected to be around 4.39 trillion KRW, and operating profit around 187.3 billion KRW, falling short of our previous estimate (202 billion KRW)." While sales and profit recovery had been anticipated as the global finished car market recovers from the impact of COVID-19, the sharp decline in the KRW-USD exchange rate has somewhat slowed the pace of improvement.

The distribution sector is expected to show a recovery compared to the previous quarter, but sales are projected to decrease by 12.2% compared to the same period last year. However, the logistics sector is analyzed to recover sales levels compared to the same period last year due to overseas factory operations and steady domestic sales.

Researcher Bang forecasted, "Considering the export performance of group companies, sales from finished car ocean transport (PCC) will also reduce the contraction compared to the same period last year." He added, "Among the group companies, recovery from the pandemic impact has been the slowest, but a gradual normalization of profits is expected next year."

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