[Click eStock] Hyundai Glovis Performance is Stable... Hydrogen is Future-Oriented

[Asia Economy Reporter Junho Hwang] Heungkuk Securities maintained the target price of Hyundai Glovis at 250,000 KRW on the 26th, expressing optimism about Hyundai Glovis's strong performance and expectations for its hydrogen platform.

Hyundai Glovis achieved sales of 5.4 trillion KRW in the third quarter of this year, a 47.3% increase compared to the previous year. Operating profit reached 315 billion KRW, up 95.2% year-on-year. This performance exceeded market expectations.

Sales by business segment were recorded as 1.8 trillion KRW in logistics, 912.3 billion KRW in shipping, and 2.7 trillion KRW in distribution, representing increases of 21.0%, 66.0%, and 64.0% respectively compared to the previous year. Operating profits also grew to 138.3 billion KRW in logistics, 65.8 billion KRW in shipping, and 110.8 billion KRW in distribution. Due to the global semiconductor supply shortage, domestic and international finished vehicle logistics decreased. However, sales and profitability increased due to the recovery in global demand, growth in PTCT cargo volume and non-affiliated cargo shipments, and a shipping boom.

Recently, Hyundai Glovis also presented a vision for its hydrogen business to become a hydrogen energy supply chain management platform company. This vision is divided into hydrogen distribution and transportation, hydrogen fuel cell power generation business, overseas green ammonia/hydrogen transportation/storage/sales, liquefied hydrogen purchase/transportation/storage/sales, discovery of new hydrogen business opportunities, expansion of overseas hydrogen ecosystems, and identification of synergy creation opportunities within the group.

Researcher Kwi-yeon Kim of Heungkuk Securities stated, "Although there are concerns about a peak-out in the transportation sector due to the logistics crisis, stable margin securing through captive sales and expectations for the hydrogen business can be reflected," adding, "We maintain a buy rating and a target price of 250,000 KRW."