[Click eStock] "Hyundai Corporation, New Business Expected Based on Healthy Cash Flow"

Hana Securities analyzed on the 25th that Hyundai Corporation's fourth-quarter earnings last year exceeded market expectations.

Hyundai Corporation recorded sales of 1.8464 trillion KRW and an operating profit of 31.8 billion KRW in the fourth quarter of last year. Compared to the same period last year, sales and operating profit increased by 17.2% and 60.4%, respectively.

Yoo Jae-sun, a researcher at Hana Securities, explained, "Despite the decline in product prices due to weak raw material prices, the increase in volume in major business sectors and the rise in the KRW-USD exchange rate compensated for this," adding, "By sector, passenger car parts were sluggish, while other sectors showed growth."

He continued, "The operating profit margin slightly declined to 1.7% compared to the previous quarter, but this was due to seasonal issues in major business divisions," and added, "Commercial energy is expected to see significant growth this year as global transformer demand, including in North America, increases."

Researcher Yoo analyzed, "The company has been continuously renewing its annual record high performance, maintaining an annual profit capacity in the 100 billion KRW range," and noted, "It is like recording the annual operating profit on a quarterly basis compared to 10 years ago." Furthermore, he stated, "With continued strong performance, excluding some unavoidable debts such as trade finance, the company has already entered a net cash position," and expressed expectations that "based on healthy cash flow, efforts to enter new businesses and strengthen the business portfolio will continue."