[Click eStock] "Kia, 2Q Earnings Surprise Again... Target Price Up"

Daishin Securities raised the target price for Kia from 140,000 won to 155,000 won on the 30th.

Kia is estimated to record sales of 26 trillion won and an operating profit of 3.4 trillion won in the second quarter. These figures represent increases of 19% and 54%, respectively, compared to the same period last year, significantly exceeding market expectations.

For the full year, sales are expected to reach 95 trillion won, with an operating profit of 11 trillion won. Although there are concerns about a peak-out (a slowdown in growth after reaching a performance peak) following Kia's six consecutive quarters of strong performance, Daishin Securities analyzed that as of the end of May, Kia holds a global supply backlog of 800,000 units (230,000 units domestic), and new order volumes remain stable, enhancing the visibility of annual profits.

Kim Gwiyeon, a researcher at Daishin Securities, stated, "Considering the recent stabilization trend in key vehicle raw materials such as steel and aluminum, there is no need to preemptively reflect concerns about a peak-out in the second half. The investment benefits outweigh the downside risks related to peak-out concerns, making this a comfortable buying opportunity."

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