[Click eStock] "Hyundai Glovis, Direct and Indirect Beneficiary of Hyundai Motor's Used Car Business... Target Price Up"

[Asia Economy Reporter Hwang Yoon-joo] On the 21st, KTB Investment & Securities maintained a 'Buy' rating on Hyundai Glovis, anticipating direct and indirect benefits from Hyundai Motor Group's entry into the used car business, and raised the target price from 230,000 KRW to 260,000 KRW.

Yoo Ji-woong, a researcher at KTB Investment & Securities, stated, "Hyundai Motor Group's direct entry into the used car business signals a structural ecosystem change. Hyundai Glovis is expected to benefit directly and indirectly by indirectly entering the used car auction/wholesale business."

Researcher Yoo evaluated, "The vertical integration of the group due to entry into the used car sales business is expected to accelerate Hyundai Glovis's external growth."

He explained, "Annual sales in the used car sector are expected to grow rapidly at an average annual rate of 21%, from 733 billion KRW in 2021 to 1.3 trillion KRW in 2024. In addition to auctions, which account for most sales, continuous profitability contributions are ongoing through the online brokerage platform Autovel."

Researcher Yoo analyzed, "Hyundai/Kia's used car sales business model is expected to lead to the expansion of Hyundai Glovis's logistics and PCTC business, including exports as well as domestic sales. In particular, the current loading rate of the PCTC business is only 68%."

He added, "Beyond China, where the business has already been launched, expansion of the used car business is expected in the four major regions of the U.S., Europe, and India."

Researcher Yoo stated, "Operating profit estimates for 2023 and 2024 have been revised upward by 1.6% and 2.5%, respectively, while the 2022 operating profit estimate remains at the existing 1.39 trillion KRW."

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