Apple Negotiations Fail but Competitiveness Remains Strong... "Considered a Buying Opportunity at the Low Point"
[Asia Economy Reporter Minwoo Lee] Hyundai Motor Group's market capitalization evaporated by about 14 trillion won in one day following news that collaboration with Apple on autonomous vehicles had fallen through. Nevertheless, individual investors' buying sentiment is gathering momentum. Judging that the fundamentals such as technology, production capacity, and market position remain solid, they see this as a buying opportunity at a low point and are rather accumulating shares.
According to the Korea Exchange, on the 9th, Hyundai Motor's stock price opened at 232,500 won, down 0.64% from the previous day. Kia Motors' stock also opened at 85,100 won, down 1.39% from the previous day. The impact of the news about the failed collaboration with Apple continued through this day. On the day the news broke, Kia Motors plunged 14.98%. Hyundai Motor (-6.2%), Hyundai Mobis (-8.7%), and other Hyundai Motor Group stocks fell one after another. The market capitalization of Hyundai Motor Group affiliates, which had exceeded 163 trillion won on the 5th, sharply declined by about 14 trillion won in one day to 149.3288 trillion won based on the previous day's closing price.
Nevertheless, individual investors' buying continued. On the previous day, they were the top net buyers overall, purchasing 240 billion won worth of Kia Motors shares. This is the fifth-largest daily net purchase by individuals for Kia Motors ever recorded. They bought about 30% of last month's individual net purchase amount for Kia Motors (817.3 billion won) in just one day. Hyundai Mobis (170 billion won) was also the second-largest net purchase stock by individuals that day. In addition, they net purchased 523 billion won worth of Hyundai-related stocks including Hyundai Glovis (60.6 billion won), Mando (28 billion won), Hyundai Motor (12.5 billion won), and Hyundai Wia (11.3 billion won).
This is interpreted as a move to buy at the low point, judging that the failed collaboration with Apple does not damage Hyundai Motor Group's competitiveness. The stock price has already slightly rebounded. As of 9:45 a.m. that day, Hyundai Motor rebounded to 238,500 won, up 1.92% from the previous day. Kia Motors also reduced its decline to 0.46% compared to the previous day.
In fact, Hyundai Motor Group is steadily pursuing a future strategy centered on eco-friendly vehicles. The electric vehicle dedicated platform ‘E-GMP’, unveiled at the end of last year, is a representative example. Jaeil Lee, a researcher at Eugene Investment & Securities, said, "The upcoming launch of the ‘Ioniq 5’ next month will dramatically improve electric vehicle performance and strengthen independent competitiveness," adding, "They will gain an advantage in negotiations with external companies seeking technological cooperation."
Even if discussions with Apple on the ‘Apple Car’ are halted, Hyundai Motor Group's global status is expected to steadily expand. The Apple Car discussions are analyzed to have been a catalyst to accelerate the timeline rather than a fundamental factor in strengthening Hyundai Motor Group's future vehicle competitiveness. Jinwoo Kim, a researcher at Korea Investment & Securities, explained, "It is presumed that Apple did not actually take issue with Hyundai Kia Motors' quality and technology," adding, "Major issues such as E-GMP, governance structure, autonomous driving, and hydrogen vehicles will support competitiveness, and collaboration with related overseas companies remains an area to watch."
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