[Click eStock] Sportage, EV6 Global Launch Anticipation

[Asia Economy Reporter Hwang Junho] NH Investment & Securities maintained Kia's target stock price at 130,000 KRW on the 12th.

First, by introducing the 2022 model Sportage and EV6 to the global market, it is expected to see brand improvement effects. From the second quarter of this year, meaningful production recovery, global sales increase, and performance improvement are anticipated. Although rising raw material prices will be a burden, considering the recovery of operating rates and the KRW-USD exchange rate trends, sales this year are expected to exceed 80 trillion KRW, and operating profit to surpass 6 trillion KRW.

KB Securities projected this year's global sales (wholesale) guidance at 3.15 million units, assuming low inventory levels and normalized production. This year's expected global sales (deliveries) for Kia were also raised by 6.2% to 3.1 million units. Even considering the rise in raw material prices, it is expected that the recovery of operating rates and the effect of exchange rate increases will offset these factors.

Last year's fourth-quarter sales are forecasted to be 16.9085 trillion KRW, the same level as the previous year, while operating profit is expected to be 1.1283 trillion KRW, lower than the previous year. The reason for falling short of consensus is attributed to rising raw material prices, production disruptions due to semiconductor supply issues, and inventory shortages.

Researcher Cho Suhong of NH Investment & Securities analyzed, "The successful new car launch cycle applying the 3rd generation new platform and the rising market share in advanced markets such as the U.S. and Europe, which enhance brand status, are strengths. However, weaknesses include the global automobile demand decline due to structural changes in the automobile industry (transition to electric vehicles, expansion of the sharing economy) and the possibility of prolonged poor performance in the China business."

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