[Click eStock] "Hyundai Glovis, Strong Q1 Performance Expected... Stock Price Structural Rebound Imminent"

Hyundai Glovis is expected to record earnings that exceed market expectations for the first quarter of this year. The stock price has entered a structural rebound phase, supported by increased sales in the shipping sector and the expansion of the CKD (Completely Knocked Down) business.

On the 31st, Yoo Ji-woong, a researcher at Daol Investment & Securities, stated in a report, “Hyundai Glovis's first-quarter sales are estimated at 7.3 trillion KRW (up 10.5% year-on-year), and operating profit at 514.2 billion KRW (up 33.6% year-on-year),” maintaining a ‘Buy’ investment rating and a target price of 166,000 KRW.

Operating profit is expected to reach an all-time high. Operating profit margins by business division are 9.0% for logistics, 9.9% for shipping, and 4.4% for distribution. Operating profit in the shipping sector is projected to be 133 billion KRW, an increase of 50 billion KRW year-on-year and 36 billion KRW quarter-on-quarter. The freight rates for Hyundai and Kia vehicles are expected to rise by more than 30% from this year compared to previous rates, and the expansion of non-affiliated volumes such as BYD is anticipated to have a positive effect.

The CKD business is also expected to continue its growth trend. Hyundai Glovis operates by linking the shipping, overseas logistics, and CKD sectors, so the increase in finished vehicle logistics sales is likely to create synergy with the expansion of CKD sales. Based on global overseas shipment volumes, CKD sales per finished vehicle are expected to rise from the 30 million KRW range in 2024 to the 40 million KRW range in 2028, while overseas logistics sales per vehicle are also projected to increase from 21 million KRW to 25 million KRW during the same period.

Researcher Yoo analyzed, “Hyundai Glovis is reducing low-margin North American routes and continues to secure large-scale orders for China-origin automobile exports and backhaul volumes, indicating that the margin expansion phase has arrived in the mid to long term.”

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