[Click eStock] "4Q Smooth Sailing Hyundai Glovis, Dawn Before Daybreak"

Record-High Revenue Achieved...
All Business Sectors on Track
Expectations for Continued Growth This Year

Hyundai Glovis continued its stable growth last year in the fourth quarter, with logistics, shipping, and distribution all performing well. It is expected that this trend will continue this year.

On the 7th, Daol Investment & Securities maintained its 'Buy' rating and target price of 166,000 KRW for Hyundai Glovis for these reasons. The closing price on the previous day was 136,000 KRW.

Hyundai Glovis recorded consolidated sales of 7.2879 trillion KRW and an operating profit of 459.8 billion KRW in the fourth quarter of last year. These figures represent increases of 11.8% and 31.1%, respectively, compared to the same period the previous year. Net profit was 106.1 billion KRW, down 57.5% year-on-year, but this was due to approximately 130 billion KRW in losses from Hyundai Engineering reflected in the equity method income.

Each business division also showed growth in scale. Sales in logistics, shipping, and distribution grew by 101.4%, 21.5%, and 9.3%, respectively. Compared to the previous quarter, logistics and shipping grew by 1.5% and 1.8%, respectively. Overseas sales in logistics increased by 14.8% year-on-year. In particular, sales in the Asia-Pacific region reached 309.6 billion KRW, up about 41% year-on-year. This is analyzed as entering a structural growth phase due to the expansion of forwarding business in China and exports from the Anantapur region in India.

The Pure Car and Truck Carrier (PCTC) business continued its peak performance, recording sales of approximately 1.069 trillion KRW and maintaining steady progress. The fleet temporarily increased to 98 vessels.

Last year’s total sales were 28.4074 trillion KRW, and operating profit was 1.7529 trillion KRW, up 10.6% and 12.8%, respectively, compared to the previous year. This surpassed the previous record high sales of 26.9818 trillion KRW in 2022.

Hyundai Glovis’s operating profit guidance for this year is in the range of 1.8 trillion to 1.9 trillion KRW. However, there is analysis that it can easily exceed this. Yoo Ji-woong, a researcher at Daol Investment & Securities, explained, "Considering the exchange rate assumption of 1,320 KRW per USD in this year’s earnings guidance, the growth momentum will continue. Taking into account the increase in the proportion of fixed shipping capacity, reduction of high-cost shipping capacity, and freight rate increases for group companies, the PCTC business profit margin can structurally expand."