[Market Focus] Profit Growth and Shareholder Returns in Spotlight... Hyundai Glovis Up Over 4%

The share price of Hyundai Glovis is on the rise, driven by expectations of stable profit growth and attractive shareholder returns.

As of 10:22 a.m. on October 22, Hyundai Glovis was trading at 172,000 won, up 7,100 won (4.31%) from the previous trading day.

On this day, Yuanta Securities initiated coverage of Hyundai Glovis with a "buy" investment opinion and a target price of 210,000 won. Choi Jiwoon, a researcher at Yuanta Securities, stated, "There are short-term volatility factors due to the imposition of U.S. port entry fees," but added, "From a long-term perspective, attention should be paid to the stable profit growth in the shipping sector and the high level of shareholder returns."

He explained, "Since October 14, port entry fees have started to be imposed on foreign car carriers (PCTC) entering U.S. ports. For Hyundai Glovis, this is expected to result in annual costs slightly exceeding 200 billion won, but it should be noted that there is a possibility of passing these fees on to shippers."

He continued, "On the contrary, stable growth in non-affiliate cargo volume within the PCTC business and cost reduction through fleet efficiency improvements will enable the shipping segment's profit growth to continue steadily next year as well." He also noted, "It is positive that this year's expected dividend per share (DPS) is projected to reach 5,660 won, a 53% increase compared to last year."