[Click eStock] "Hyundai Motor to Achieve Stable Growth through Genesis Expansion"

[Asia Economy Reporter Myung-hwan Lee] Daishin Securities announced on the 13th that it has newly issued a buy rating and a target price of 210,000 KRW for Hyundai Motor Company, expecting an expansion of the Genesis sales lineup.

Daishin Securities forecasts Hyundai Motor's sales for the first quarter of this year to increase by 4.4% year-on-year to 28.6 trillion KRW, while operating profit is expected to decrease by 1.5% year-on-year to 1.6 trillion KRW. The operating profit margin for the first quarter is projected at 5.7%. The annual sales for 2022 are expected to rise by 5.7% from last year to 124.3 trillion KRW. Operating profit for this year is forecasted to increase by 9.2% year-on-year to 7.3 trillion KRW, with an operating profit margin of 5.9%. Compared to market expectations, the first quarter operating profit is 2.3% lower, and the annual operating profit is 4.9% lower.

Daishin Securities analyzed that a downward revision of performance compared to market expectations is inevitable due to semiconductor supply disruptions and rising raw material costs. However, it expects the annual profit growth trend to continue, with the first quarter of this year as the bottom.

It is analyzed that stable growth is expected due to the expansion of Hyundai Motor's luxury car brand Genesis lineup and regional expansion. Genesis sales are projected to increase by 14.2% from 201,000 units last year to 230,000 units this year. It is expected that sales of the G90 FMC and GV60 this year could increase sales by 30,000 units.

Sales growth due to improved semiconductor supply and improvement in scale and profitability due to the expansion of the Genesis lineup are anticipated. Kim Gwi-yeon, a researcher at Daishin Securities, said, "Currently, global industry stock prices reflect semiconductor supply and geopolitical risks," adding, "We expect gradual improvement in the second half of this year and next year, and with confirmed signals of production and wholesale sales rebound, valuation increases across global industries will appear."

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