Hyundai Glovis' stock price surged on the first trading day of the new year. News of signing a new maritime transportation contract with Hyundai Motor and Kia seems to have boosted investor sentiment.
Hyundai Glovis shares traded at 132,400 won on the KOSPI market at 10:51 a.m. on the 2nd. The stock price rose by 12.11% (14,300 won) from the previous trading day, setting a new high for the past year.
Hyundai Glovis announced that it signed a maritime transportation contract for finished vehicles with Hyundai Motor and Kia on the 31st of last month. The scale of the contract is 3.3655 trillion won with Hyundai Motor, 3.3340 trillion won with Kia, totaling 6.6690 trillion won. The contract period runs until Dec. 31, 2029.
According to NH Investment & Securities, Hyundai Glovis had a total contract scale of 1.96 trillion won during the maritime transportation contract period from 2022 to 2024 with Hyundai Motor and Kia. Although the transportation proportion dropped from 60% to 50% of domestic production volume, rising maritime freight rates are expected to contribute to Hyundai Glovis' revenue.
Jeong Yeon-seung, a researcher at NH Investment & Securities, said, “Hyundai Glovis has secured sufficient revenue based on a long-term contract spanning five years, enabling stable operations. Additionally, the company may improve revenue further by increasing freight rates for non-affiliated cargo on an annual contract basis and securing additional ad-hoc short-term contracts.”