Hana Securities analyzed that if the tariff rate decreases, there is room to increase its earnings estimate for Hyundai Motor. The target stock price is 250,000 won, and the investment opinion remains "buy."
Song Seon-jae, a researcher at Hana Securities, noted, "After the third quarter, the impact of the tariff will be fully reflected, and profitability in the second half is expected to decline further." However, he added that "by responding to tariffs through price increases, cost reductions, and expanded localization, the related impacts can be alleviated."
He added, "If the tariff rate decreases as a result of negotiations between the two governments, the currently reduced profitability under the existing tariff rate of 25% can recover." He also said that "if a significant reduction in the tariff rate is decided, Hana Securities will raise Hyundai Motor's earnings estimates and target stock price."
Hyundai Motor's second-quarter revenue reached 48.3 trillion won, a 7% increase compared to the same period last year, while operating profit recorded 3.6 trillion won, a 16% decrease during the same period. Researcher Song explained, "Although 828 billion won was reflected as tariff expense in the second quarter, it positively impacted operating profit due to the high exchange rate of the won against the U.S. dollar."