Shinhan Investment Corp. reported on July 6 that Hyundai Glovis continues to demonstrate strong core business competitiveness, maintaining a "buy" rating and a target price of 320,000 won. This represents a potential upside of 62.4% compared to the current stock price of 197,000 won as of July 3.
Choi Min-ki, an analyst at Shinhan Investment, noted, "Short-term stock prices are likely to be influenced more by the group's robotics investment strategy than by performance metrics. There is also potential for an increase in the value of shares in Boston Dynamics."
Shinhan Investment estimates that Hyundai Glovis will report second-quarter revenues of 8.0872 trillion won, a 7.6% increase from the same period last year, while operating profit is expected to decline by 9.6% to 487.3 billion won, falling short of market consensus. However, the temporary decline in profitability due to soaring bunker oil prices is expected to be offset by the pass-through of rising fuel costs through the bunker adjustment factor (BAF), allowing for the maintenance of annual profit forecasts.
The logistics sector is anticipated to see improvements in forwarding performance due to rising maritime freight rates, which will be reflected in the next quarter. The retail sector is expected to benefit from favorable impacts on complete knockdown (CKD) operations due to rising exchange rates, leading to increased operating profits. Additionally, the strong market conditions for pure car and truck carriers (PCTC) driven by increased exports of finished vehicles from China and cost efficiencies from the introduction of large PCTCs are expected to continue.
Choi concluded, "The current stock price is at a level that can be sufficiently explained by the solid core business value, prior to the full momentum of the group's robotics initiatives."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.