[Click eStock] IBK Securities "Maintain Kia Target Price at 100,000 Won"

IBK Investment & Securities maintained a target price of 100,000 KRW and a buy rating for Kia.

On the 17th, IBK Investment & Securities released a report on Kia, stating, "The first-quarter 2023 earnings are expected to meet consensus," and "The launch of the EV9 is expected to mark the beginning of a full-scale expansion of the electric vehicle lineup."

IBK Investment & Securities forecasted that Kia will record sales of 21.6 trillion KRW and an operating profit of 1.9 trillion KRW in the first quarter of this year.

Researcher Lee Sang-hyun explained, "Based on low inventory, wholesale sales are showing favorable results," adding, "As of the end of January, regional inventory levels are 1.3 months in the U.S., 1.5 months in Europe, and 0.8 months in India, and global backorders (pending orders) are understood to be maintained at around 1 million units as of the end of February."

An expansion of the electric vehicle lineup is also expected. Researcher Lee said, "Kia’s flagship electric vehicle model, the EV9, is scheduled to be launched domestically in April," and "It is also planned to be launched in the U.S. in the second half of the year, and production in the U.S. is expected after 2024."

If production occurs in the U.S., IRA tax benefits are also expected to be available. Kia plans to launch 2 to 3 electric vehicle models annually until 2027. The company aims for 810,000 units in 2026 and 1.2 million units in 2030.

Kia is conducting share buybacks and cancellations to enhance shareholder value. From January 31 to March 16, it completed the purchase of 6.64 million shares, totaling 500 billion KRW. Half of these shares are planned to be canceled. Meanwhile, Kia is scheduled to hold an Investor Day on the 5th of next month, where it will announce key details such as its 2030 strategy and business plans for 2023.

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