[Click eStock] "Hyundai Glovis Enters Battery Raw Material Business... Highlights Growth Engine"

Daol Investment & Securities analyzed on the 14th that Hyundai Glovis is likely to be elevated as a key player in the electric vehicle sector within the group due to its entry into the battery raw materials business. Accordingly, they maintained a buy rating and raised the target price from 220,000 KRW to 240,000 KRW.

Researcher Yoo Ji-woong emphasized, "As a characteristic of raw material trading companies, they often expand into the supply chain's upstream industries," and added, "Hyundai Motor Group, which has been increasing its battery cell joint ventures (JVs) recently, urgently needs to secure raw materials, raising the possibility of accelerated utilization of group affiliates' resources."

Researcher Yoo stated, "Hyundai Glovis is expected to enter the battery material trading business," and noted, "It is responsible for the non-ferrous metal trading business within the group, so its role is expected to be highlighted." He analyzed, "Upstream (upstream industry) investments in battery raw materials have so far been made by material companies such as LG and POSCO, but with Hyundai Motor, the actual consumer, recently expanding its battery cell JVs, there is a possibility that it will independently secure raw material volumes for mid- to long-term cell sourcing."

He further added, "Hyundai Glovis has already confirmed its entry not only into battery raw material trading but also into collection logistics necessary for battery recycling, thus engaging in battery ecosystem investments," and forecasted, "In particular, with the entry of finished car manufacturers into the used car business, a waste battery collection ecosystem is being formed, which will highlight mid- to long-term growth drivers for the logistics business."

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