[Click eStock] "Innocean, Strong Earnings Expected Through Q3"

[Asia Economy Reporter Park Ji-hwan] Daishin Securities forecasted on the 2nd that Innocean is expected to maintain a robust performance flow through the third quarter. The investment opinion 'Buy' and target price of 90,000 won were maintained.

Kim Hoe-jae, a researcher at Daishin Securities, stated, "Gross profit (GP) is expected to increase by 19% year-on-year to 150 billion won," adding, "Operating profit (OP) is also estimated to rise by 90% to 30.3 billion won." Both GP and OP for the second quarter are expected to achieve record-high results.

The headquarters' GP is expected to turn to net growth at 26.8 billion won after five quarters. Researcher Kim said, "Marketing expenses for Hyundai and Kia Motors are increasing, centered on electric vehicles such as Ioniq 5, EV6, and G80e, leading to improved performance." The new CI of Kia Motors, unveiled in the first quarter, is also expected to generate sales as the changeover process begins from the second quarter.

Overseas GP increased by 21% year-on-year to 130 billion won. The Americas region, which accounts for 50% of global GP, is expected to drive growth. The resumption of BTL (face-to-face marketing such as promotions), which had been suspended for nearly a year, marketing for GV70, Tucson, and Santa Fe launched domestically from late 2020 to early 2021, and marketing for GV80 launched in North America in the fourth quarter of last year are also expected to contribute to improved performance.

Researcher Kim said, "Considering that new cars are typically launched in North America one quarter after their domestic release, the effects of Ioniq 5, EV6, and G80e, which led domestic performance improvements in the second quarter, will be reflected in the third quarter." The volume of Kia Motors' CI changes is also expected to be reflected in North American performance starting from Q3. Accordingly, third-quarter GP is projected at 170 billion won and OP at 34.6 billion won, both expected to be record highs for the third quarter.

The introduction of interim dividends starting this year is also positive news. Researcher Kim emphasized, "The interim dividend is expected to be around 480 to 640 won, which is about 30-40% of the annual dividend," adding, "many companies are strengthening shareholder returns by introducing interim and quarterly dividends, and Innocean has joined this movement."

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