[Click eStock] Hyundai Motor, Record-Breaking Earnings... "Industry Slowdown Is Premature"

[Asia Economy Reporter Ji Yeon-jin] Shinhan Financial Investment stated on the 22nd that although Hyundai Motor's expected strong earnings have already been reflected in the stock price, it is still too early to worry about a slowdown in the industry outlook, maintaining a buy investment opinion and a target price of 260,000 KRW.

Hyundai Motor recorded sales of 36 trillion KRW in the second quarter of this year, an 18.7% increase compared to the same period last year, and operating profit of 3 trillion KRW, up 58%. This exceeded market expectations by 31%, significantly surpassing the previous quarterly highest operating profit (2.1 trillion KRW). Sales of new cars contributed an increase of 1 trillion KRW, and the exchange rate effect amounted to 600 billion KRW.

Since the model year change of the Grandeur in May, model year changes for the Ioniq 5, Tucson, and Sonata have been implemented, with price increases ranging from at least 2.4% (Grandeur Calligraphy trim) to 9.0% (Tucson Premium trim). The domestic unshipped inventory, representing waiting demand, increased by 29% to 520,000 units at the end of the first quarter compared to the previous quarter, and rose by 23% to 640,000 units at the end of the second quarter.

Jeong Yong-jin, a researcher at Shinhan Financial Investment, said, "Steady demand is allowing for price increases," and added, "New car launches and positive exchange rate effects will continue in the second half of the year." The exchange rate is expected to rise from an average of 1,260 KRW per dollar in the second quarter to 1,290 KRW in the third quarter.

For the third quarter of this year, sales are expected to increase by 23.4% year-on-year to 35.6 trillion KRW, and operating profit is projected to reach 3.2 trillion KRW, nearly doubling by 99.7%, continuing record-high performance.

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