Meritz Securities stated on June 16 that Hyundai Glovis is expected to benefit from the increase in Chinese car exports and a shortage of car carrier supply, maintaining a target price of 340,000 won and a 'buy' rating. The potential for a special dividend due to the rising value of its stake in Boston Dynamics was also highlighted as an investment point.
Analyst Kim Jun-sung projected that Chinese car exports will exceed 10 million units this year. Despite the surge in exports, the global supply of car carriers is expected to stagnate until 2030, which may lead to continued strong freight rates.
However, for the second quarter, operating profit is anticipated to fall short of market expectations at 488.4 billion won, impacted by the blockade of the Strait of Hormuz and soaring fuel costs.
Looking ahead to the second half of the year, Kim believes that the effects of freight rate increases linked to oil prices and the introduction of large car carriers at lower charter rates could lead to improved performance. The number of car carriers operated by Hyundai Glovis is projected to grow from 96 last year to 102 this year, and further to 118 by 2028.
Kim also noted the potential for the Hyundai Motor Group's robotics business to take shape and the possibility of an IPO for Boston Dynamics.
Hyundai Glovis holds an 11% stake in Boston Dynamics, which may lead to increased shareholder returns through special dividends from future share sales. Kim described the company as one capable of achieving both performance growth and differentiated shareholder returns.
* This article has been translated by AI.
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