[Click eStock] "Hyundai Wia, Momentum for Rebound Continues This Year Including Ukraine Ceasefire"

'Buy' Rating Maintained,
Target Price Set at 61,000 KRW

Daishin Securities on the 19th expected that Hyundai Wia's stock price rebound momentum will continue this year due to the end of the Russia-Ukraine war. The investment opinion was maintained as 'Buy' with a target price of 61,000 KRW.

Kim Gui-yeon, a researcher at Daishin Securities, said on the day, "With the end of the Russia-Ukraine war this year, the sale of the machinery business in the second quarter and orders for internal combustion engine thermal management modules are expected," adding, "Although growth in modules and engines is limited and the industry continues to struggle due to tariff issues imposed by the Trump administration, there will be opportunities for a rebound this year." He further explained, "A stock price rebound and recovery are expected with the resumption of growth next year."

Hyundai Wia's Russian plant is an engine factory with an annual capacity of 240,000 units, which began operations in the second half of 2021 but has not been operating normally due to the outbreak of the Russia-Ukraine war and Hyundai Motor's withdrawal from the Russian plant. Researcher Kim said, "If the end of the war is confirmed and global automakers begin to re-enter Russia in earnest, Hyundai Motor is also highly likely to buy back the Russian plant," predicting, "This will accompany an improvement in Hyundai Wia's fundamentals." Kim forecasted that Hyundai Wia would generate annual sales exceeding 400 billion KRW through this.

The previous day, Hyundai Wia closed at 42,700 KRW, up 8.51% from the previous trading day. It is analyzed that buying demand surged due to the emergence of a defense industry theme in the market and expectations of benefits from the end of the war.