[Click eStock] "Hyundai Glovis: Profit Growth Directly Reflected in Dividends"

On July 22, Korea Investment & Securities projected that Hyundai Glovis would achieve record-high operating profit in the second quarter of this year.

Korea Investment & Securities forecast that Hyundai Glovis's second-quarter revenue would reach 7.5 trillion won, up 3% from the previous quarter, and operating profit would rise by 5% to 529 billion won. These figures would mark a new record for operating profit, and the company expects the impact of tariff increases and the decline in the won-dollar exchange rate to be limited.

Choi Gooun, a researcher at Korea Investment & Securities, stated, "The PCC division, which attracts the most investor interest, is expected to see both revenue and operating profit improve quarter-on-quarter, driven by an increase in non-affiliated volumes from China and other regions." He added, "Although investment in new PCC shipbuilding orders has surged over the past two to three years, the shortage of vessels felt by the Chinese auto industry has not been resolved."

Choi emphasized that Hyundai Glovis should be re-evaluated as a top-tier global automotive logistics company.

He explained, "In the logistics business, revenue from the Americas is more than twice that of Korea, and the proportion of non-affiliated volumes in the PCC segment is around 50%, indicating a highly diversified profit structure. As global supply chain disruptions intensify, the importance of logistics is increasing, but the automotive logistics market is facing shortages of both manpower and infrastructure. Naturally, Glovis's freight rates and margins are trending upward."

Choi recommended buying the stock, citing its differentiated position in both the transportation and automotive sectors.

He stated, "As the owner family is the largest shareholder, Hyundai Glovis is an essential stock in the ongoing trend of governance improvement and enhanced shareholder returns. Assuming a dividend payout ratio of 25%, this year's DPS will increase by 41%. With more than 1 trillion won in surplus cash accumulating each year, even raising the payout ratio above 40% would not pose any financial issues."