[Special Stocks] Hyundai Motor and Kia Respond to Strong Earnings with Stock Prices Rising Over 5%

by Kwon Jaehee

Published 26 Apr.2022 09:58(KST)

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Hyundai Motor and Kia are both rising in the early trading session. The strong buying momentum is attributed to the favorable first-quarter earnings announced the previous day.

As of 9:48 AM on the 26th in the KOSPI market, Hyundai Motor is trading at 189,500 KRW, up 4.12% from the previous trading day.

At the same time, Kia is showing a 5.28% increase from the previous trading day, trading at 83,800 KRW.

Hyundai Motor, which announced its first-quarter earnings the day before, recorded consolidated sales of 30.2986 trillion KRW and operating profit of 1.9289 trillion KRW. This represents increases of 10.6% and 16.4%, respectively, compared to the same period last year.

Kia, which also announced its first-quarter earnings on the same day, achieved consolidated sales of 18.3572 trillion KRW and operating profit of 1.6065 trillion KRW. These figures increased by 10.7% and 49.2%, respectively, compared to the same period last year. Notably, this is the highest quarterly performance since the introduction of the new accounting standards (IFRS) in 2010.

The securities industry is also positively evaluating the outlook for Hyundai Motor and Kia.

Song Seon-jae, a researcher at Hana Financial Investment, stated, "Kia is presented as the top preferred stock in the industry due to its strong earnings and the increasing proportion of electric vehicles," adding, "The operating profit target of 6.5 trillion KRW for this year is expected to be achieved smoothly."

Regarding Hyundai Motor, Researcher Song said, "We expect steady earnings to continue despite concerns," and analyzed, "Although there will be negative factors such as global parts supply imbalances and rising raw material prices in the second quarter, these will be offset by low incentives amid supply shortages relative to finished vehicle demand, mix improvements based on SUVs and Genesis, and additionally increased positive price effects from exchange rates."