Sangsangin Investment & Securities analyzed on the 14th that Hyundai Motor would be unable to avoid the effects of the tariff imposed by the United States. It adjusted the target price down from 350,000 won to 300,000 won and maintained the investment opinion as 'buy.'
Yoo Ming-ki, a researcher at Sangsangin Investment & Securities, said, "The number of vehicles delivered in the first quarter of this year is similar to the same period last year, while the increase in sales in North America and the rise in sales of eco-friendly vehicles, including hybrid electric vehicles (HEVs), have led to an increase in average selling price (ASP), but it will be difficult to avoid the impact of the tariff."
Sangsangin Investment & Securities estimated Hyundai Motor's revenue and operating profit for the first quarter of this year to be 43.6 trillion won and 3.4 trillion won, respectively. Revenue increased by 7.2% compared to the same period last year, but operating profit decreased by 9.2%.
Researcher Yoo explained, "The benefit contribution effect of the increase in electric vehicle sales is minimal, while labor costs increased last year," and noted, "Although the release of the Palisade HEV and the operation of the Pune factory will commence in the second half of this year, and mass production of the Ioniq 5 and Ioniq 9 is scheduled at the U.S. factory, it is a constraint that it is difficult to significantly increase the local production ratio."