NH Investment & Securities: Hyundai Motor Expected to Recover in Second Half with New Models

Employees pose for a commemorative photo during a press conference at the 2026 Busan Mobility Show held at BEXCO in Busan on June 26. From left: Yoon Ho-jun, Executive Vice President of Hyundai Motor's Domestic Business Division; Jose Munoz, President and CEO of Hyundai Motor; Park Min-woo, Head of Hyundai Motor & Kia AVP Division and CEO of 42dot; Lee Sang-yup, Vice President of Global Design at Hyundai Genesis. [Photo=Yonhap News]

NH Investment & Securities stated on June 30 that Hyundai Motor is expected to see a rebound in performance in the second half of the year, driven by new car launches, normalization of production, and an expansion of the group's artificial intelligence (AI) business momentum. The firm maintained a "buy" rating and a target price of 860,000 won. However, it projected a decline in performance for the second quarter due to production disruptions and a decrease in exports to the Middle East.

Analyst Ha Seung-ho of NH Investment & Securities estimated Hyundai Motor's consolidated revenue for the second quarter at 48.1194 trillion won and operating profit at 3.1179 trillion won, representing declines of 0.3% and 13.4%, respectively, compared to the same period last year. The lack of new car momentum, production disruptions caused by fires at domestic parts suppliers, and reduced export sales to the Middle East contributed to this downturn. However, the average exchange rate of the won against the dollar is expected to remain around 1,500 won, continuing to benefit from high exchange rates.

NH Investment & Securities anticipates that performance will recover from the second quarter's low point, starting in the second half of the year. Production disruptions are expected to normalize from June, and major new car launches, including the European Ioniq 3, the domestic Grandeur hybrid (HEV), the new Avante, and the Santa Fe facelift, are scheduled.

Additionally, the establishment of humanoid robot production facilities, the operation of the U.S. Robot Learning Center (RMAC), and real-world testing of software-defined vehicles (SDV) will further advance Hyundai Motor Group's "Physical AI" initiatives in the second half, contributing to stock momentum.

Ha noted, "While the second quarter's results will be weak due to production disruptions, the normalization of production and the impact of new car launches will enable a turnaround starting in the second half. The Physical AI business will also become more concrete in the latter half of the year."

* This article has been translated by AI.