[Click eStock] "Kia with Continued New Car Momentum... Expectation for EV Market Share Improvement"

EV4 and Other New Cars to Launch Next Year... Anticipation for Early Year New Sales Plan Announcement

[Asia Economy Reporter Minwoo Lee] Kia posted solid results in the third quarter of this year, driven by the strong performance of new vehicles. It is expected to increase its market share through the launch of electric vehicle (EV) models in the first half of next year.

On the 28th, Eugene Investment & Securities maintained its 'Buy' rating and target price of 125,000 KRW for Kia, citing these factors. The closing price on the previous day was 85,000 KRW.

In the third quarter of this year, Kia recorded consolidated sales of 17.7528 trillion KRW and operating profit of 1.327 trillion KRW, representing increases of 8.8% and 579.7% respectively compared to the same period last year. Both sales and operating profit exceeded market consensus estimates by 5.0% and 6.1%. Researcher Jaeil Lee of Eugene Investment & Securities explained, "Wholesale sales fell short of expectations due to production disruptions, but profitability was strong thanks to the effect of rising average selling prices (ASP)."

In particular, the rise in ASP is driven by structural factors such as reduced incentives, improved sales mix, and the premiumization of options and trim selections. Lee said, "It is not just that more premium cars are being sold, but also that customers are increasingly choosing higher trims and advanced electronic features even within the same vehicle segment. Globally, even if incentives rise again as new car supply recovers, the structural effect of new car price increases is greater, so the current high margin rate is expected to be maintained."

The new car momentum that continued this year is expected to persist next year as well. The Sportage, which received favorable reviews in the domestic market, will be launched overseas next year. The increased production volume of Telluride is also expected to be shipped in earnest. Environmentally friendly models such as the 'Niro' and the electric SUV EV4, based on the electric vehicle platform E-GMP, are scheduled for release in the first half of next year.

Lee said, "Despite the launch of the EV6, the EV market share has been sluggish due to delays in overseas launches caused by production disruptions, but a significant upward trend is expected after the fourth quarter. Considering the accelerating spread of EVs, an updated sales plan will be announced early next year, and the expansion of EV market share along with improved performance will act as a catalyst for stock price increases."