[Click eStock] Hyundai Motor Bets on Confirmed Earnings... Maintains Target Price at 240,000 Won

[Asia Economy Reporter Lee Seon-ae] Daishin Securities announced on the 6th that it maintains a 'Buy' rating and a target price of 240,000 KRW for Hyundai Motor Company. This decision is based on the judgment that it is time to bet on earnings with high visibility. The target price was calculated by applying a 12-month forward price-to-earnings ratio (PER) of 34,399 KRW and a target PER of 7.0 times (reflecting expectations for expansion/Genesis and applying a 10% discount for macroeconomic uncertainties compared to the '12~14 valuation).

Kim Gwi-yeon, a researcher at Daishin Securities, stated, "Hyundai Motor's stock price has been sluggish since September due to concerns over demand slowdown and earnings uncertainty," adding, "However, no signs of demand contraction have been detected, and with this year's PER at 5.5 times, the valuation burden is limited, so it is time to focus on confirmed earnings."

Hyundai Motor's third-quarter sales are expected to exceed market expectations, with revenue increasing by 23% year-on-year to 35.4 trillion KRW and operating profit rising by 103% to 3.3 trillion KRW. This is attributed to volume improvements due to eased parts supply, a strong dollar, and price increases, which are expected to sustain solid top-line growth.

Researcher Kim analyzed, "Considering deferred demand, the inflationary environment, and the expansion of high-margin models, the impact of price increases is likely to continue," and added, "Even if the contribution profit per vehicle slightly declines next year, combined with volume improvements, an annual profit increase effect of approximately 458.1 billion KRW is estimated."

This content was produced with the assistance of AI translation services.