"Hyundai Corporation Poised for Growth in Machinery Infrastructure and Petrochemicals; Target Price Raised" [Click eStock]

by Hwang Seoyul

Published 21 Apr.2026 06:30(KST)

Updated 21 Apr.2026 07:31(KST)

Hyundai Corporation Target Price Raised from 32,000 Won to 35,000 Won

On April 21, Shinhan Investment & Securities raised its target price for Hyundai Corporation from 32,000 won to 35,000 won, maintaining its 'Buy' investment rating, citing expected performance growth in the company’s machinery infrastructure and petrochemicals divisions.

"Hyundai Corporation Poised for Growth in Machinery Infrastructure and Petrochemicals; Target Price Raised" [Click eStock]

Shinhan Investment & Securities projected Hyundai Corporation’s first-quarter operating profit to reach 45.8 billion won, up 38.0% from the previous quarter and surpassing the market consensus of 37 billion won. This improvement is attributed to the recovery of the steel division, as well as growth in the machinery infrastructure and petrochemicals divisions.

Researcher Han Seunghoon and Research Fellow Park Kwangrae commented, “As demand for construction machinery continues to grow and performance from Economic Development Cooperation Fund (EDCF) projects in the Commonwealth of Independent States (CIS) is added, operating profit in the machinery infrastructure division is expected to reach 5.6 billion won, up 20.1% quarter-on-quarter. In the petrochemicals division, tight product supply-demand and a wider range of price fluctuations are expected to drive margin improvement, with operating profit projected to increase to 12.1 billion won, up 202.8%.”

For the passenger vehicle division, a decrease in volume for the CIS region, stemming from Kia’s new completely knocked down (CKD) plant operation in Kazakhstan, is expected to be offset by exports to alternative regions such as Latin America and the Middle East. In the steel division, operating profit is forecast at 9.3 billion won, up 50.0%, thanks to resumed shipments to the U.S. For the energy commercial parts division, robust transformer demand in North America is projected to result in operating profit of 9.3 billion won, up 10.5%.

Shinhan Investment & Securities estimated that full-year operating profit for 2026 will increase by 26.9% year-on-year to 177.8 billion won. The company cited the diversification of exports in the passenger vehicle division and improved profitability in the petrochemicals division as key drivers of earnings growth. It also added that if tight supply conditions for petrochemical products persist, further profit increases are possible.