[Click eStock] "Hyundai Glovis Smiles Amid Dollar Strength... Q3 Expected to Hit Record High Sales"

[Asia Economy Reporter Hwang Yoon-joo] Heungkuk Securities stated on the 11th that Hyundai Glovis is expected to achieve record-high sales in the third quarter due to the ultra-strong dollar. Accordingly, they maintained a 'Buy' investment rating and a target price of 310,000 KRW.

Researcher Lee Byung-geun of Heungkuk Securities analyzed, "The expected sales for the third quarter are 7.2 trillion KRW, a 32.8% increase compared to the previous year, and operating profit is expected to reach 480.6 billion KRW, up 52.6%."

The unprecedented dollar strength in the third quarter positively impacted all business divisions. The Completely Knocked Down (CKD) segment is expected to record its highest-ever sales of 2.9 trillion KRW due to the recovery in Hyundai Motor and Kia production volumes and the strong dollar.

The Pure Car and Truck Carrier (PCTC) segment is experiencing steady demand despite tight supply. The one-year charter rate for a 6,500 CEU vessel reached $90,000 per day as of September, setting a new record. Due to the strong dollar and robust PCTC market conditions, the PCTC segment's sales are expected to increase by 38.7% year-on-year to 854.1 billion KRW. Overseas logistics is also expected to see margin improvements thanks to favorable exchange rates and strong sales.

Additionally, Hyundai Glovis recently signed a maritime transport contract with a U.S. finished vehicle manufacturer. Researcher Lee stated, "The maritime transport contract period is from 2023 to 2025, and it is a large-scale contract worth 2.2 trillion KRW."

With the rise in PCTC charter rates, the freight rates for the new contract have significantly increased, and it is estimated that the contract was signed at higher rates than previous non-affiliated volume contracts.

Researcher Lee evaluated, "Since it is a three-year long-term contract, even if spot freight rates decline in the short term, it will help protect earnings," and added, "The expansion of non-affiliated sales proportion and rising freight rates will continue to improve the company's PCTC profitability."

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