[종목 현미경] Hyundai Motor’s happy new year… The race continues on the’Geuphojae’

(Provided by Hyundai Motor Group) 2020.12.16/News 1

Hyundai Motor Group stocks warmed up the new year of 2021. The stock price of Hyundai Motor Group shares, which started with strong expectations for an expansion of the electric car lineup, such as the launch of Hyundai Motor’s new electric car’Ioniq 5′, gave wings to the news of cooperation discussions between Apple and Hyundai Motor Company.

According to the Korea Exchange on the 9th, the previous day (8th), Hyundai Motor Company completed the transaction at 246,000 won, up 40,000 won (19.42%) compared to the previous day and wrote a new report price. Hyundai Motor’s market capitalization increased by a whopping 8,546.7 billion won over the course of a day to 52,562.4 billion won, and jumped to 5th place (excluding preferred stocks) after Samsung Biologics.

Share prices of affiliates also rose. Hyundai Mobis 18.06%, Hyundai Wia 21.33%, Hyundai B&G Steel 12.39%, Kia Motors 8.41%, Hyundai Steel 5.17%, Hyundai Motor Securities 3.04%, Hyundai Rotem 3.00%, Hyundai Autoever 2.91%, Hyundai E&C 1.11%, INNOCEAN 1.07% And Hyundai Glovis recorded an increase of 0.75%.

Hyundai Motor Group stocks exceeded 200,000 won on the first trading day of the new year in anticipation of electric vehicles. The news that the launch of Hyundai Motor’s new electric vehicle’Ioniq 5’was advanced to February served as a boon. There were also concerns about delays in the release of the’Ioniq 5’due to the Kona EV (electric vehicle) battery recall, and the news of the early release has alleviated these concerns.

The day before, the news that Hyundai Motor Company is discussing cooperation with Apple for self-driving electric vehicles was delivered, and the stock price of Hyundai Motor Group stocks advanced. As a result, Hyundai Motor’s stock price rose 28% over the five trading days of the new year. Hyundai Wia, an affiliate, jumped 60%, Hyundai Mobis 54%, Hyundai Rotem 29%, and Hyundai Steel 18%. The combined market capitalization of Hyundai Motors, Kia Motors (27.686 trillion won), and Hyundai Mobis (34 trillion 172.2 billion won) also exceeded 100 trillion won.

The stock market is promising that Hyundai Motor will continue to run. It is explained that if the Hyundai Motor Group confirmed the improvement in the marketability of the Hyundai Motor Group last year, this year will be the first year to be reflected in the corporate value by confirming the potential future car capabilities beyond that.

Yongjin Jeong, researcher at Shinhan Investment Corp. said, “For six years since 2014, when it was decided to purchase the KEPCO site, the automotive sector continued to suffer poor performance and valuations.” We focused on supply control, which led to immediate improvement in earnings through higher average unit prices and reduced incentives.”

Ionic brand product lineup rendered image. From left, Ioniq 6, Ioniq 7, Ioniq 5 (provided by Hyundai Motor Company) © News1

The market share is expected to increase rapidly by utilizing its own electric vehicle platform. Hyundai Motor Group unveiled its electric vehicle platform’E-GMP (Electric-Global Modular Platform)’ in December last year, and announced its goal to sell more than 1 million units a year by launching 23 types of electric vehicles by 2025.

Lee Jae-il, a researcher at Eugene Investment & Securities, said, “Hyundai Motor has presented a total of 4.16 million units in domestic sales and 3418,000 units in overseas sales as sales targets this year. The catalyst for the rise will be a mix effect from the expansion of sales of electric cars, hydrogen cars, luxury cars, and partially self-driving cars.”

Earnings are expected to improve as sales volume increases. According to F&Guide, a financial information company, Hyundai Motor’s estimated sales this year increased 10.80% year-on-year to KRW 115,358.8 billion, and operating profit is KRW 6.76 trillion, up 135.01%.

Song Seon-jae, a researcher at Hana Financial Investment, said, “If the expectations for the EV-only model due to the release of E-GMP are confirmed as actual results, the operating value can be highlighted from a long-term perspective,” said “Genesis and SUVs from the end of 1Q to 2Q. “The US input of the company, the launch of an electric car model, and the expectation of a corporate governance reorganization will re-emerge as momentum.”

Researcher Jeong Yong-jin also said, “Recently, Hyundai Motor Group is actively investing in responding to the future car industry such as Limak, Aptiv, and Boston Dynamics. This is a shift in the direction that investors want.” It will be possible to re-rate the valuation of the automobile sector.”

“Hyundai Motor Group will unveil the first model of E-GMP this year,’Ioniq 5′, and will arouse the attention that has been focused on new electric vehicle companies such as Tesla and Nio.” “Accumulated investment in electric vehicles and second place in the global electric vehicle market, etc. “The achievement of the electric car roadmap is more convincing.”

Kang Seong-jin, a researcher at KB Securities, said, “Hyundai Motor Group can be an attractive cooperation target for IT companies that want to enter the automobile industry. The collaboration with Apple, which has a mobile device operating system and contents industry, is expected for the Hyundai Motor Group in the future automobile industry. It will be enough points to increase the value.”

However, there are voices of concern over intensifying competition among EV makers. Yoo Ji-woong, a researcher at Ebest Investment & Securities, said, “The decisive variable for Hyundai Motor’s share price re-rating this year is the success of the full-fledged entry into the electric vehicle market based on E-GMP.” I judged it.

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