[Featured Stock] Hyundai Corporation with 'Quarterly Record Profit' Up 4.10%

The stock price of Hyundai Corporation, a general trading company, is strong on the 7th. As of 9:53 a.m. on that day, Hyundai Corporation was trading at 18,530 KRW, up 730 KRW (4.10%) from the previous trading day.

Yoo Jae-sun, a researcher at Hana Securities, said, "Hyundai Corporation's first-quarter sales amounted to 1.6 trillion KRW, down 8.9% year-on-year. Although the segments with large sales proportions such as passenger car parts, petrochemicals, and steel saw a decline in scale due to falling raw material and product prices, it appears to have improved compared to the previous quarter." He added, "Operating profit recorded 28 billion KRW, an increase of 9.2% year-on-year. This is the highest operating profit on a quarterly basis, with a profit margin of 1.7%. The profitability level is gradually improving, moving away from the early 1% range in the past, which is positive."

He said, "The global supply chain changes caused by geopolitical risks seem to be working favorably for performance. The benefits from increased investment in North America, along with business expansion in the Commonwealth of Independent States (CIS) region, a group of former Soviet countries, act as factors driving performance upward." He expressed expectations, saying, "In the mid to long term, benefits related to reconstruction projects after the end of conflicts can also be anticipated."

He continued, "The company has generated stable profits from existing businesses and has recorded double-digit return on equity (ROE) annually since the COVID-19 pandemic. The debt ratio has steadily improved, and there is sufficient capacity for new business investments." He added, "Considering past cases where mergers and acquisitions (M&A) related to automotive parts were actively reviewed, future expansion into areas linked to existing businesses can be expected."