Hyundai GLOVIS is expected to report its largest operating profit since its establishment in the first quarter of this year.
Yoo Ji-woong, a researcher at DAOL Investment & Securities, noted on the 31st, "We need to pay attention to the effects of the increase in finished vehicle freight rates starting this year and the revenues from vehicle carriers, particularly in the shipping sector," adding, "There will be an increase in revenue due to the expansion of Hyundai Motor Group Meta Plant America (HMGMA) and other regional Completely Knocked Down (CKD) businesses."
Yoo, the researcher, predicted that Hyundai GLOVIS would achieve sales of 7.3 trillion won and an operating profit of 514.2 billion won in the first quarter. This represents increases of 10.5% and 33.6%, respectively, compared to the same period in 2024. The operating profit will be the highest ever recorded. Operating profits by business unit are expected to rise by 9.0% in logistics, 9.9% in shipping, and 4.4% in distribution compared to the same period last year.
In particular, the operating profit from the shipping sector is expected to increase by 500 billion won compared to the previous year and by 360 billion won compared to the previous quarter, reaching 133 billion won. Yoo explained that the increase in Hyundai and Kia's freight rates by more than 30% compared to the previous year starting this year, along with the expansion of non-affiliated shipments like BYD, would positively affect the earnings.
There are also analyses suggesting that Hyundai GLOVIS's CKD business is expected to grow. Yoo stated, "The shipping, overseas logistics, and CKD sectors are interconnected within the business, making it highly likely that a chain reaction of synergy effects will occur due to the increase in global volumes of finished vehicles," adding that it should be interpreted as a key variable for medium- to long-term growth, contrary to the recent controversy over reduced finished vehicle exports.