Nineteen of 20 securities firm reports on Hyundai Motor stocks issued in the recent month lowered target prices, with six firms downgrading targets on July 24 following the company's Q2 earnings announcement. The downgrades came as Hyundai Motor reported Q2 revenue of 49.2153 trillion won, up 1.9% year-over-year, but operating profit fell 20.8% to 2.8509 trillion won, while global sales declined 6.9% to 991,885 units. Analysts cited production disruptions from the Anjeon Industrial Daejeon plant fire and geopolitical risks affecting Middle East sales as key factors behind the earnings weakness.
Six Securities Firms Lower Hyundai Motor Stocks Targets on July 24
According to the financial investment industry on the 26th, 19 of 20 Hyundai Motor reports released in the recent month lowered target prices. On July 24, the day after the Q2 earnings announcement, six securities firms simultaneously cut their target prices.
Yuanta Securities lowered its target from 690,000 won to 570,000 won, Korea Investment Securities reduced its target from 770,000 won to 640,000 won, and Hana Securities adjusted its target from 760,000 won to 650,000 won. Heungkuk Securities cut its target from 780,000 won to 720,000 won, Kyobo Securities lowered its target from 800,000 won to 740,000 won, and NH Investment Securities reduced its target from 860,000 won to 760,000 won.
Hyundai Motor Reports Q2 Operating Profit Decline of 20.8%
The downgrades stem from weakening core business performance. Hyundai Motor's Q2 revenue reached 49.2153 trillion won, up 1.9% year-over-year, but operating profit fell 20.8% to 2.8509 trillion won. Global sales during the same period declined 6.9% year-over-year to 991,885 units.
As of the July 24 closing, Hyundai Motor stocks traded at 401,000 won, down 48.8% from the intraday high of 783,000 won recorded on June 1.
Analysts Maintain Positive View on Robotics Business Value
Despite near-term earnings concerns, analysts maintain that the value of Hyundai Motor's robotics business remains valid. Kim Chang-ho, a researcher at Korea Investment Securities, stated that "global sales decreased significantly due to poor Middle East sales stemming from expanded geopolitical risks and production disruptions from the Anjeon Industrial Daejeon plant fire," adding that "in the second half, lower tariff costs and resolution of production disruptions will act as factors for earnings improvement."
Song Seon-jae, a researcher at Hana Securities, noted that "the valuation premium as a mobility and robotics company depends on market formation speed and Hyundai Motor's execution capability," stating that "when related momentum such as Boston Dynamics' RMAC and production entity establishment, supply chain construction, and SDV Pace Car launch becomes visible, the valuation premium will also gradually recover."
Kim Yong-min, a researcher at Yuanta Securities who presented the lowest target price, projected that "although Q2 performance was weak due to parts supply disruptions and increased incentives, profitability will gradually improve with Q3 production normalization and Q4 new vehicle launch effects."
FAQ
How many securities firms lowered Hyundai Motor stocks target prices in the recent month?
Nineteen of 20 securities firm reports on Hyundai Motor issued in the recent month lowered target prices, with six firms simultaneously cutting targets on July 24 following the Q2 earnings announcement.
What were Hyundai Motor's Q2 financial results?
Hyundai Motor reported Q2 revenue of 49.2153 trillion won, up 1.9% year-over-year, but operating profit fell 20.8% to 2.8509 trillion won. Global sales declined 6.9% year-over-year to 991,885 units during the same period.
What is the current Hyundai Motor stocks price compared to its recent high?
As of the July 24 closing, Hyundai Motor stocks traded at 401,000 won, down 48.8% from the intraday high of 783,000 won recorded on June 1.
