[Click eStock] Hyundai Motor, Investor Day Confidence and Second Half Production Normalization 'Potential for Profit Improvement'

[Asia Economy Reporter Lee Seon-ae] Hana Financial Investment announced on the 3rd that it maintains a buy rating and a target price of 280,000 KRW for Hyundai Motor Company. This is due to the emerging possibility of profit improvement following the normalization of production in the second half of the year.

Song Seon-jae, a researcher at Hana Financial Investment, stated, "The content of this Investor Day alone is not expected to have a significant impact on stock price momentum, but Hyundai is well building its capabilities as a Fast Follower during a period when the pace of transition to electric vehicles and autonomous vehicles is accelerating." He added, "Going forward, the stock price is expected to move in correlation with how smoothly these plans, which have been revised upward for the first time in 14 months, are executed."

He continued, "Although there is short-term pressure due to exposure to vehicle semiconductor supply shortages and direct and indirect impacts from sanctions on Russia, it is necessary to focus on the fact that there is a large amount of backlog demand contracted at current high prices. As production normalizes in the second half, a significant profit improvement is possible through the combined effects of price and volume."

Through Investor Day, the electric vehicle sales target was raised (from the previous 560,000 units in 2025 to a new 840,000 units in 2026), but overall, this is seen as reflecting the accelerated transition from internal combustion engine vehicles to electric vehicles in the market. The market share target for electric vehicles at 7% in 2030 aligns with the previous goal of 8-10% in 2040, and the proportion of electric vehicles within Hyundai has significantly increased from the previous 10%/19% in 2025/2030 to a new 17%/36% in 2026/2030.

The plans for electric vehicle model launches, product improvement strategies, battery strategies, and mid-to-long-term investment plans are updates of existing goals. Regarding electric vehicle production plans, Hyundai announced a two-track strategy involving expansion (+line changes) of existing plants and the establishment of dedicated electric vehicle plants, but detailed plans will be disclosed later.

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