Hyundai Glovis Advances New Hydrogen and Electric Vehicle Business... Target Price Up

[Asia Economy Reporter Koh Hyung-kwang] Hana Financial Investment raised the target price of Hyundai Glovis from 150,000 KRW to 200,000 KRW on the 24th, stating that the company is pursuing new businesses related to hydrogen and electric vehicle batteries. However, due to the recent rapid stock price increase exhausting the upside potential to the target price, the investment rating was downgraded to 'Neutral.'

Song Seon-jae, a researcher at Hana Financial Investment, said, "Despite a contraction in scale, Hyundai Glovis's Q3 operating profit in absolute terms met market expectations, while the stock price surged significantly recently due to expectations regarding the Hyundai Motor Group's restructuring and new businesses. The stock valuation is elevated, reflecting these expectations in advance, and it will take time for these expectations to materialize and drive corporate value growth."

He continued, "Q3 sales this year fell about 7% short of market expectations due to weakness in the CKD and shipping sectors, but operating profit met market expectations thanks to improved logistics mix from strong domestic finished vehicle sales and cost reductions in the shipping sector."

Regarding dividends, Researcher Song analyzed, "This year's dividend per share is expected to be at the previous year's level, and going forward, dividend increases will be managed within 10%. Based on the current stock price, the expected dividend yield is 1.9%."

Researcher Song commented on Hyundai Glovis's future projects, saying, "In hydrogen-related businesses, plans include maritime transportation via hydrogen carriers and land distribution through special tube trailers. For electric vehicle-related businesses, the company is pursuing battery charging infrastructure construction, battery rental services for electric vehicles, and recycling of used batteries. Overall, it is judged that Hyundai Glovis is responsible for operating non-manufacturing businesses such as logistics, distribution, and infrastructure construction within the Hyundai Motor Group's electric and hydrogen vehicle business ecosystem."