[Click eStock] "Hyundai Corporation, Reliable Performance... Expecting Value-Up Results"

Daishin Securities analyzed on the 7th that the performance of Hyundai Corporation is reliable and that value-up achievements are expected this year.

Lee Taehwan, a researcher at Daishin Securities, stated in a report on the same day, “The fourth-quarter performance last year met market consensus,” and added, “In the steel sector, the operating profit margin (OPM) was only 1.1% due to a deterioration in the sales mix during the expansion of sales regions to overcome price declines and weak demand. However, the automotive parts segment improved profitability based on existing sales regions (Latin America, Middle East, CIS), recording an OPM of 2.2%.”

He also explained, “In other business sectors, commercial energy maintained stable profits supported by transformer sales in the U.S. The equity-method income from Oman LNG agreed to extend the existing dividend termination date from this year to 2034, with no additional contract costs incurred, but the amount is expected to decrease compared to previous dividend receipts.”

He forecasted, “Operating profit closed at 99.4 billion KRW last year, and although there is economic uncertainty this year, it is still possible to maintain a high profit level based on increased trade finance limits and steady demand for automotive parts.”

However, he noted, “Despite maintaining a return on equity (ROE) above 10%, the price-to-book ratio (PBR) has not reached 0.5 times and continues to be undervalued. For stock re-rating, it is judged necessary to realize new business M&A, which has been emphasized since 2021, to expand the group portfolio or to announce shareholder return policies aligned with market trends.”