In the first quarter, Hyundai Glovis posted an operating profit of 501.9 billion KRW, marking an all-time high. Nevertheless, due to market concerns over tariffs and the USTR’s port entry tax scheduled for the second half of the year, the company's stock price has been sluggish. There are projections that if tariffs cause global finished vehicle manufacturers selling in the United States to raise prices, leading to a slowdown in demand, the maritime transport market for finished vehicles could weaken. In the mid- to long-term, this could become a burden for companies expanding their fleets.
Yang Ji-hwan, a researcher at Daishin Securities, said, “We fully understand the market’s concerns as described above,” but added, “In reality, the impact on the company’s performance is limited.” While the company could be affected if finished vehicle manufacturers raise prices due to tariffs and demand subsequently falls, he pointed out that client companies have not yet planned price increases, and the USTR’s port entry tax is negligible compared to vehicle prices, making it possible to pass on the cost. Hyundai Glovis ships about 1 million finished vehicles to the United States annually, and the port entry tax (150 USD) is about 0.5% of the vehicle price, which exceeds 30,000 USD.
Yang noted, “In the first quarter, the share of non-affiliate volume in car carrier (PCTC) operations, such as those for Chinese automaker BYD, increased to 50%, and the target is 60%, with continued efforts to attract non-affiliate volume.” He added, “Although it will likely take at least two more quarters of performance data to fully resolve the uncertainty, the current stock price level is undervalued enough to withstand this time lag.”
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