[Featured Stocks] Hyundai Motor and Kia Rise Together Early in Trading on Strong Q2 Earnings Outlook

[Asia Economy Reporter Lee Myunghwan] Hyundai Motor and Kia are showing strength in the market on the morning of the 11th. This is interpreted as a result of securities firms' forecasts that they will post strong earnings ahead of the Q2 earnings announcement this year.

As of 10:03 AM on this day, Kia is trading at 79,100 KRW, up 2.99% (2,300 KRW) from the previous trading day. Hyundai Motor is also trading at 181,500 KRW, up 1.97% (3,500 KRW) compared to the previous trading day.

Korea Investment & Securities forecasted on the 11th that Hyundai Motor and Kia will post strong Q2 earnings. They explained this as an effect of high exchange rates and reduced incentives. Korea Investment & Securities projected Hyundai Motor's Q2 operating profit to increase by 31% year-on-year to 2.4723 trillion KRW. For the same period, Kia's operating profit is expected to grow 3% year-on-year to 2.2464 trillion KRW. Both companies' figures exceed market expectations.

Jinwoo Kim, a researcher at Korea Investment & Securities, said about Hyundai Motor, "Competition among automakers is expected to gradually resume in the second half, but Hyundai Motor is expected to raise its stock price to the next level by maintaining its market share."

Regarding Kia, Researcher Kim emphasized, "Kia's popularity in the U.S. has led to dealers demanding premiums beyond just reduced incentives. Rather than concerns about the earnings peak, attention should be paid to the level of normalized earnings after the peak."

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