[Edaily Reporter Kwon Oh-seok] Meritz Securities announced on the 16th that it is maintaining its “Buy” rating on #Hyundai Glovis and raising its target price from 250,000 won to 340,000 won.

Kim Jun-sung, an analyst at Meritz Securities, stated, "Monthly Chinese vehicle exports in May 2026 reached 930,000 units (+69% year-over-year). The YTD (year-to-date) total for 2026 stands at 4.06 million units (+63%), and annual exports for 2026 are expected to exceed 10 million units (compared to 7.06 million units in 2025)," he explained, adding, "This is a result of intensifying competition in the Chinese domestic market, the rise of smart cars priced at 44.5 million won (200,000 yuan) or less, and tariff reductions in major markets."
He elaborated, “The global fleet of car carriers follows the long-term plans of shipping companies. It is expected to remain stagnant at a lower level until 2030,” adding, “The increase in Chinese car exports and the worsening shortage of carriers will lead to higher shipping costs.”
Researcher Kim noted, “Second-quarter performance will be weak due to the impact of the Iran conflict. The blockade of the Strait of Hormuz resulted in waiting costs for car carriers bound for the Middle East and ship transshipment costs, while rising fuel costs further eroded profitability.” He added, “However, the increase in fuel costs during the second quarter will be gradually recouped starting in the second half of the year, in accordance with contracts with upstream clients that link freight rates to oil prices.” He further emphasized, “In addition, the influx of a fleet of large car carriers with charter rates more than 30% lower than previous levels has begun, which will contribute to increased revenue and an improved profit mix.”
He added, “Concrete details regarding Hyundai Motor Group’s robotics business are expected to emerge in the second half of the year. We anticipate the announcement of long-term production plans and the hardware supply chain for Atlas in July, the disclosure of the data center operator and the intelligence development roadmap in August, and the launch of the RMAC (Robot Meta-Plant Application Center) and ‘Robotics America’ in September.”
Additionally, he noted, “Glovis holds an 11% stake in Boston Dynamics (BD). If an IPO is pursued by 2028, it will be possible to utilize this stake through the sale of existing shares and value enhancement.” He added, “We recommend a ‘Buy’ rating on Glovis, as it offers the potential for earnings growth and differentiated shareholder returns.”