On the 1st, Korea Investment & Securities raised the target price for Hyundai Glovis to 290,000 KRW, expecting a stock price increase due to shareholder value enhancement policies. The investment rating was maintained as 'Buy.'
Choi Go-woon, a researcher at Korea Investment & Securities, explained, "The reason valuation has declined for years and recently decoupled from the rising stock prices of affiliates was due to stinginess in investment and dividends. Now that these limits have been lifted, a re-evaluation is necessary."
In fact, Hyundai Glovis's operating profit has nearly doubled over five years, securing global top-tier competitiveness in the automotive logistics market, with the fastest growth in market share in the most profitable PCC sector.
The new dividend policy recently announced by Hyundai Glovis is expected to have a positive impact on the stock price. Researcher Choi said, "First, they set a target of over 40 trillion KRW in sales and operating profit between 2.6 trillion and 3 trillion KRW by 2030. The annual growth rates correspond to 7% and 9%, respectively. In the mid-to-short term, through the dividend guidance for the next three years, the dividend amount is expected to more than double by 2027."
He added, "The stock price rose nearly 30% within two weeks after this event was decided. Although it adjusted down by 5% on the day due to concerns about a sell-on event, it is judged not to be a one-off issue."
He emphasized that attention should be paid to the fact that Hyundai Glovis has started shareholder-friendly actions rather than artificial stock price boosting. Researcher Choi said, "Artificial stock price boosting worked in the past, but that is history now. Instead, it is more important that Glovis is finally starting shareholder-friendly actions. Also, the next steps are not vaguely far off. They are approaching the year-end PCC affiliate volume contract renewal, and the dividend payout ratio is also expected to increase this year."
He added that ultimately, Hyundai Glovis's confidence in profit growth is connected to group-level efforts to boost the stock price.
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