16.6% surge… Ranked 10th in the market cap
Close to SK Inno’s battery factory
As a candidate for a production base in Georgia, USA
The vision for the future such as electric vehicles is also bright
4Q operating profit potential of KRW 1 trillion
Photo = Yonhap News
Kia Motors(83,400 +16.64%) The stock price hit the highest in about nine years since 2012. A solid new car lineup, future growth potential, and good performance were also overlapped with expectations for the production of’Apple Car’. Experts believe that Kia Motors’ share price surged in the short term, but there is further upside potential.
Kia Motors finished the market at 83,400 won, up 16.64% (11,900 won) on the 19th. It is the first time since May 2012 that it has exceeded 80,000 won. Kia Motors is Hyundai Mobis on this day(345,000 +6.65%)Became the top 10 in market cap.
The biggest reason why the stock price soared was due to the production of Apple cars. Since the beginning of this year, the news that Apple has been discussing with Hyundai Motor Group for the production of electric vehicles has spread,(261,500 +8.51%)The group’s stock price rose significantly. Kia Motors’ stock price has also increased by about 34% this year.
In recent years, specific cooperation plans have emerged, and Kia Motors has rapidly emerged as Apple’s production partner. It is said that there is a possibility that Kia Motors will take over the production of Apple cars instead of Hyundai Motor, which is focusing its electric vehicle capabilities on the Ioniq brand. As a production base, Kia Motors’ Georgia plant in the US is emerging as a candidate. The Georgia plant, which was established 11 years ago in the southeastern United States, has a press, body, painting and assembly plant on a site of 262,000m2. The annual production capacity is 340,000 units. It mainly produces K5, Sorento, and telluride.
The fact that there are factories of domestic battery makers in the vicinity also contributes to this scenario. SK innovation(270,000 +6.93%)They are building a factory in Georgia. It is a positive factor that there is a factory nearby that can reliably receive batteries. Earlier, SK Innovation also won the first order for E-GMP battery from Hyundai Motor Group. However, some analyzes say that Georgia’s production theory is one of several scenarios. It is known that the Hyundai Motor Group is listening to various opinions while pondering various scenarios. This is because there are many factors to consider, such as whether the Apple car will hit the box office and the possibility of competition with Hyundai and Kia Motors brands.
Experts believe that Kia’s share price outlook is bright regardless of whether it produces Apple cars or not. Tae-Bong Ko, head of the research center of Hi Investment & Securities, said, “There were a lot of people who had doubts about the vision of future cars of Hyundai and Kia. There are aspects that have turned into this conviction.” In particular, it is explained that the possibility of a further rise in the stock price has increased due to the different evaluation of Kia Motors.
The earnings outlook is also bright. In the market, it is estimated that Kia Motors achieved an operating profit of 983 billion won in the fourth quarter of last year. Some are also raising the possibility of achieving quarterly sales of KRW 1 trillion in 7 years. Carnival, Sorento, Telluride, K5, and other solid lineups are gaining popularity at home and abroad. There are also observations that the annual operating profit will exceed 4 trillion won in 2022, when sales of eco-friendly vehicles such as electric vehicles are in full swing. That is, it doubles from last year’s expected operating profit (KRW 1.7687 trillion) in two years.
Reporter Park Jae-won [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution