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| Kia Motors reported on the 15th that it has changed its name to’Kia’. With the change of company name, it plans to break away from the existing manufacturing-centered business model, expand the business area through innovative mobility products and services, and improve the value of customers’ lives. The photo shows Kia’s office building in Yangjae-dong, Seocho-gu, Seoul, with the new logo signboard applied. (Kia provided) 2021.1.15/News 1 |
Kia Motors, which declared’New Kia’, was ahead of the record high price break. This is the result of reflecting the expectation of expanding new car effects and launching electric vehicles based on E-GMP for electric vehicles.
According to the Korea Exchange on the 20th, Kia Motors’ stock price surged 16.64% (11,900 won) on the previous day, and the transaction ended at 83,400 won. The share price increase rate on this day was the highest ever. As a result, Kia Motors again broke the 80,000 won line in about nine years since June 12, 2012. Institutions (112.9 billion won) and foreigners (38.6 billion won) made net purchases, leading the stock price to rise. Based on the closing price recorded on May 2, 2012, the all-time high has come close to 83,800 won.
KTB Investment & Securities (65,000 → 82,000 won, 26.2%), Hyundai Motor Securities (72,000 → 82,000 won, 13.9%), SK Securities (55,000 won → 80,000 won), which raised the target price this month. 49.1%), etc.
The market capitalization increased to 33,807.3 billion won, surpassing Hyundai Mobis (32,793.9 billion won) and ranking 10th (excluding preferred stocks).
Kia Motors’ share price surged 33.7% in the new year, reflecting strong earnings due to the effect of new car launches and expectations for E-GMP, an EV platform.
According to F&Guide, a financial information provider, Kia Motors’ sales forecast this year is expected to increase by 13.8% from the previous year to KRW 67,276.7 billion. Operating profit is estimated to increase by 121.2% to KRW 3,911.8 billion.
Kwon Soon-woo, a researcher at SK Securities, said, “Even though there was a 10.4% decrease in volume due to the impact of Corona 19 last year, we have confirmed the effect of new cars by making a significant improvement in performance.” Accordingly, the volume is expected to increase by 16.9%.” Carnival and Sportage in Korea, K5 and Sorento in North America, and Sonnet in India are expected to be at the forefront of new car effects.
The launch of E-GMP-based electric vehicles for the first time in the second half of this year is also a positive factor in improving profitability. Kim Dong-ha, a researcher at Hanwha Investment & Securities, explained, “There is a high possibility that profitability will improve as the market share of the electric vehicle rises in earnest following the launch of new E-GMP-based cars, so valuation revaluation is expected.”
Stock prices are highly likely to see Kia’s share price rise further. On the 13th, Korea Investment & Securities raised the target price for Kia Motors by 29.4% from 85,000 won to 110,000 won, suggesting the highest target price. In addition, NH Investment & Samsung Securities (80,000 → 100,000 won, 25%), Hanwha Investment & Securities (73,000 → 93,000 won, 27.4%), Meritz Securities (80,000 → 90,000 won, 12.5%), KB Securities (72,000 → 86,000 won, 19.4%) also raised the target price.