Hana Securities analyzed on the 23rd that HD Hyundai Electric will see its profits grow in the long term. Consequently, the investment opinion remains 'buy,' and the target stock price was raised by 12% to 560,000 won. In the previous transaction, HD Hyundai Electric closed at 468,000 won.
Research analyst Yoo Jae-sun noted, "The second quarter earnings met market expectations. Despite fluctuations in costs such as tariffs, the margins remained healthy," adding, "Although the North American share in the backlog slightly decreased, it still maintains over 64%, indicating that profit margins may continue to trend upward in the future."
He further added, "New orders amounted to $996 million, a 13.2% increase compared to the previous year, and the backlog increased to $6.55 billion, up 24.7%. The price-to-earnings ratio (PER) for 2025 is 24.6 times, and the price-to-book ratio (PBR) is 8.4 times."
Yoo highlighted, "Significant sales fluctuations were observed at the U.S. sales corporation due to a change in the recognition criteria from FOB to DES in the fourth quarter of 2024," emphasizing, "There is always a need to prepare for performance volatility due to the time lag between production and delivery."
Additionally, Yoo stated, "The quantities currently being shipped are expected to sequentially reflect in the performance in the second half of the year, and the scale of consolidation will be proportional to the gross sales profit, while the order margins continue to improve, suggesting a clear long-term profit growth trend despite quarterly volatility."
He continued, "Although orders have slightly slowed compared to the previous quarter, demand remains strong and the supply constraints have not changed," adding, "Policy uncertainties have not been resolved, but tariffs are already reflected in costs, and if negotiations with clients conclude positively, it could lead to additional profit improvements in the future."