[Click eStock] "Hyundai Motor, Google Car Collaboration... Growth Expectations Reignite"

Meritz Securities stated on the 7th that Hyundai Motor's collaboration with Waymo (formerly Google Car) is "grounds to reignite expectations for future growth, which had previously diminished."

Junseong Kim, a researcher at Meritz Securities, said, "Hyundai Motor will produce and supply the Ioniq 5, specialized for Waymo robotaxis, from the end of 2025 at the Hyundai Meta Plant (a new BEV-exclusive factory in Georgia, USA). Although further confirmation is needed, this is positive for corporate value evaluation." Hyundai Motor's 2024 PER forecast is 4 times. He analyzed that the valuation discount is expanding not only for Hyundai Motor but also for all legacy OEMs. The market has lost interest in their near future (short-term performance), and the formula 'performance = stock price' is considered to have disappeared. The continuous global market share decline since the inflection point in 2020 raises concerns about their ability to respond to 'changes in the business environment.' He mentioned that the concern is not about market share in the US next month, but about sustainability ten years from now.

Researcher Kim said, "The collaboration with Google Car is good," but added, "Of course, we do not expect a stock price explosion like Apple Car." He added, "Unlike Apple Car, which had no publicly disclosed capabilities and allowed vague fantasies, there has already been much discussion about Google Car's capabilities and direction." He evaluated that this collaboration rekindles interest in Hyundai Motor's mid-to-long-term future. He forecasted that milestones to be revealed in October, such as the Meta Plant operation (hardware competitiveness), SDV demo release (software competitiveness), and Waymo collaboration (convergence capabilities), will stimulate expectations for future growth.

The long-awaited India IPO has also been confirmed for the 22nd. In the earnings announcement to be held immediately afterward, the announcement of new shareholder value enhancement plans is expected (partially utilizing 4.5 trillion KRW in cash to be secured through a 17.5% sale of existing shares). Researcher Kim said, "From both an asset value evaluation perspective and a minimum dividend system perspective, the valuation is now at a level that is unlikely to decline further," adding, "Whether looking at the past or reconsidering the future, now is precisely the starting point for a stock price rebound."