[Click eStock] Kia's Growth Confidence Confirmed at Investor Day

[Asia Economy Reporter Lee Seon-ae] Korea Investment & Securities announced on the 4th that it maintains a buy rating and a target price of 135,000 KRW for Kia. This is based on the expectation that profit growth will continue due to structural improvements. The opinion of Kia as the top preferred automobile stock was also maintained.

Jinwoo Kim, a researcher at Korea Investment & Securities, stated, "Kia spent a lot of time explaining how this year's guidance can be achieved despite adverse conditions through the CEO Investor Day," emphasizing, "Despite intensified competition, rising costs, and external adversities such as Russia, structural improvements brought by brand upgrades are expected."

Kia has raised its electric vehicle sales targets: 110,000 units in 2021, 160,000 units in 2022, 810,000 units in 2026, and 1.2 million units in 2030. The 2026 target was raised by 40% and the 2030 target by 36% compared to the plan announced in 2021. The proportion of electric vehicle sales was presented as 4% in 2021, 21% in 2026, and 30% in 2030.

Regarding structural improvements in profitability, three factors were presented: product competitiveness, pricing policy, and electrification profitability. Operating profit in 2022 is expected to offset costs of -0.9 trillion KRW with volume of +1.6 trillion KRW and price/mix of +0.7 trillion KRW. The 2022 operating profit guidance of 6.5 trillion KRW is currently highly achievable.

The impact of Russia was emphasized as limited. About half of exports to Russia are planned to be redirected to other regions.

Researcher Kim said, "Kia aims for sales of 120 trillion KRW, operating profit of 10 trillion KRW (OPM 8.3%), and a market capitalization of 100 trillion KRW by 2026," adding, "This announcement shows confidence in structural improvements."

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