Following the news that Hyundai Glovis signed a large-scale finished car maritime transport contract with Hyundai Motor and Kia, several securities firms raised their target stock price to between 164,000 and 170,000 won. Hyundai Glovis's last trading day closing price was 133,800 won.
Daishin Securities maintained its investment recommendation of 'buy' for Hyundai Glovis on the 3rd and raised its target price from the previous 160,000 won to 170,000 won, a 6.25% increase.
Previously, Hyundai Glovis announced that it had signed a long-term contract for maritime transport of finished cars worth about 6.7 trillion won with Hyundai Motor and Kia for five years, effective December 31 last year. In response, Yang Ji-hwan, a researcher at Daishin Securities, noted, "This long-term transport contract renewal is considered an extraordinary contract that exceeds the level expected by the market" and added, "This contract is expected to bring additional positive effects aside from fare increases."
Research Institute Yang highlighted key effects such as ▲ the proportion of transportation volume from Hyundai Motor and Kia decreasing to 50%, reducing reliance on intercompany transactions ▲ securing stability in performance through a five-year long-term transport contract based on peak freight rates ▲ reducing affiliate dependence, thus laying the groundwork for securing high-profit non-affiliated volumes.
Hana Securities also maintained its investment recommendation of 'buy' for Hyundai Glovis and raised its target price from the previous 150,000 won to 164,000 won, a 9.3% increase.
Song Seon-jae, a researcher at Hana Securities, stated, "We signed a revised contract with key clients in the finished car maritime transport (PCTC) sector, and we are seeing improvements in profitability as we acquire new customers for Chinese finished vehicles, increasing non-affiliated revenue as well."
He further stated, "It is estimated that the volume from non-affiliated companies has increased by more than 30% last year, and the volume from non-affiliated companies continues to grow. Considering these factors comprehensively, Hyundai Glovis's maritime transport revenue for finished cars is expected to increase by 11% this year to 4.42 trillion won."
Research Institute Song projected, "As the growth potential of the core business strengthens, along with the expansion of shareholder returns and the setting of high business targets, shareholder value will also be enhanced."