by Song Hwajung
Published 05 Feb.2024 09:47(KST)
Hyundai Motor Company showed strong early gains, highlighting the attractiveness of its low price-to-book ratio (PBR), and recorded a 52-week high.
As of 9:41 a.m. on the 5th, Hyundai Motor was trading at 232,000 KRW, up 5,000 KRW (2.20%) from the previous day. During the session, it rose to 235,000 KRW, marking a 52-week high. Hyundai Motor has maintained an upward trend for the past four consecutive days. Expectations of benefits from the government's corporate value-up program contributed to a surge of over 9% on the 2nd.
Yoon Hyuk-jin, a researcher at SK Securities, stated, "The sharp rise in Hyundai Motor's stock price since its earnings announcement on the 25th of last month is attributed to the highlighted low PBR attractiveness due to positive shareholder return policies, this year's targets, and expectations for the government's corporate value-up program." He added, "The automotive division generates around 1 trillion KRW in monthly profits, providing strong dividend resources, and unlike financial companies, it is not subject to government dividend regulations. Therefore, it is considered the most exemplary company under the recent government corporate value-up program."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.