[Click eStock] "Kia, EV9 Sales Expectations... 2Q Quarterly Record Earnings Anticipated"

Shinyoung Securities forecasted on the 6th that Kia will achieve its highest-ever quarterly performance in the second quarter. This is expected due to the expansion of the EV9 launch in major markets such as the United States, leading to an increase in global BEV (battery electric vehicle) sales. Accordingly, they maintained a 'Buy' investment rating and a target price of 130,000 KRW. However, potential costs related to a class-action lawsuit over vehicle thefts in the U.S. and airbag defects were not factored into the profit and loss estimates.

Researcher Moon Yong-kwon of Shinyoung Securities stated, "Global sales in the second quarter are expected to increase by 10% year-on-year, setting new records for quarterly revenue and operating profit."

Researcher Moon explained, "Although the possibility of quality costs related to airbag defects cannot be ruled out, if such one-time factors do not occur, the impact of a higher average selling price (ASP), an increased proportion of high-margin domestic and U.S. sales (+1%p), favorable exchange rate effects, and improved RV mix in key markets will be significant."

The common factor among companies whose stock prices surged sharply over the past month is the anticipation of electric vehicles. Over the past month, the stock price increases of global automobile companies were Toyota +15%, Ford +23%, GM +14%, Tesla +31%, and NIO +32%. In contrast, Kia only rose about +3%.

Kia's global electric vehicle retail sales in the first half of the year were 86,000 units, a 1% decrease compared to the previous year. The EV share dropped by 0.6%p. Researcher Moon analyzed, "This is because there were no electric vehicle sales in China, the world's largest market, EV sales in the U.S. decreased by 26% in the first half due to IRA regulations, and sales in Europe also declined by 9%."

However, the situation is expected to change with the recent launch of the EV9. Researcher Moon diagnosed, "After the EV9 was launched in the three-row electric SUV market, which has few competing models, Kia's global electric vehicle sales in June recorded the first rebound since February (YoY +19%)." He added, "As the EV9 launch expands to major markets such as the U.S., global electric vehicle retail sales are expected to increase in the second half of the year."

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