[Click eStock] "Hyundai Corporation Expected to Achieve Record Quarterly Performance... Target Price Up"

Hana Securities raised the target price for Hyundai Corporation from 25,000 KRW to 33,000 KRW on the 17th. It is expected that the second-quarter earnings will surpass market expectations, recording the highest quarterly performance.

Hyundai Corporation's sales for the second quarter of this year are projected to be 1.6 trillion KRW, a 3.0% increase compared to the same period last year. Although the growth rate of revenue may slow due to the high base effect in the steel and petrochemical sectors, it is expected to drive overall sales not only in the core passenger car parts division but also in machinery, shipbuilding, and commercial energy sectors.

Operating profit for the second quarter is expected to reach 26.2 billion KRW, a 25.6% increase compared to the same period. Despite a decline in sales in the steel sector, profitability is expected to improve, and the passenger car parts division is also anticipated to see enhanced profit margins due to increased demand. Although petrochemical prices have fallen, margins remain stable, and commercial energy, which previously recorded losses, is expected to turn profitable due to improved demand from increased energy infrastructure investments. Machinery and shipbuilding are expected to maintain steady profits without significant volatility.

Yoo Jae-sun, a researcher at Hana Securities, said, "Despite a slowdown in revenue growth due to weak product prices, high-margin contracts are translating into sales, leading to an improving overall performance trend." He added, "With improving automobile demand and increasing global sales, the strong profit margins centered on the passenger car parts division are expected to drive annual profit growth this year." He continued, "Dividend income related to overseas resource development is also expected to remain stable amid the rebound in international oil prices." He further noted, "Considering the current situation where Hyundai Corporation is setting record-high profits during a period of expanding trading sector multiples, we believe there is sufficient undervaluation appeal."

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