Hyundai Glovis, Continued Expectation of Dual-Driven Performance

[Asia Economy Reporter Park Ji-hwan] Mirae Asset Daewoo maintained a 'Buy' investment rating and a target price of 200,000 KRW for Hyundai Glovis on the 25th, stating that the dual strong performance in the finished car maritime transport (PCC) and semi-knocked down product (CKD) sectors will continue in the fourth quarter.

Researcher Ryu Je-hyun of Mirae Asset Daewoo said, "Hyundai Glovis's fourth-quarter sales recorded 4.8025 trillion KRW, a 6.4% increase compared to the same period last year," adding, "Sales in the finished car maritime transport (PCC) and semi-knocked down product (CKD) sectors increased by 21.4% and 17.4%, respectively, driving external growth."

In particular, overseas subsidiary sales centered on the Asia-Pacific region increased by 8.6%, and domestic and international logistics growth trends also continued. However, the bulk sector experienced a 37.2% decline in sales due to fleet reduction caused by sluggish market conditions.

Researcher Ryu Je-hyun evaluated, "Operating profit reached 228.4 billion KRW, meeting market expectations (224.2 billion KRW), and the operating profit margin (4.8%) also improved compared to 4.3% last year," adding, "Efficiency of the fleet is improving due to the continued increase in non-affiliated PCC volumes, and the shipping sector's profit margin improved due to the turnaround effect in operating profit from restructuring in the bulk ship sector."