[Edaily Reporter Park Soon-yeop] Analysts suggest that despite concerns over sluggish second-quarter sales and slowing profitability, Hyundai Motor may continue to see its stock price rise in the second half of the year, driven by the launch of new models and optimism surrounding its robotics business. Hanwha Investment & Securities maintained its “Buy” rating on Hyundai Motor and raised its target price by 100,000 won, from 660,000 won to 760,000 won.
Kim Seong-rae, an analyst at Hanwha Investment & Securities, stated in a report on Hyundai Motor on the 18th, “Although weak second-quarter sales are expected to continue, revenue is projected to increase slightly due to positive exchange rate effects,” adding, “In the second half of the year, earnings are expected to recover through expanded sales volume and an improved product mix driven by the launch of new models, particularly eco-friendly vehicles.”

Hanwha Investment & Securities projected Hyundai Motor’s global sales for the second quarter of this year at 1,001,000 units. This represents a 6.1% decrease compared to the same period last year. The firm believes that, in addition to a slowdown in global demand, supply disruptions caused by a fire at a supplier facility last March led to the decline in sales. By region, sales in North America and Europe were sluggish, while India and Latin America performed relatively well.
The firm also expects the sales momentum for eco-friendly vehicles to slow somewhat. While sales of hybrid vehicles (HEVs) continue to grow, the pace of growth is slowing, and the decline in sales of battery electric vehicles (BEVs) is weighing on the overall performance. Consequently, second-quarter sales of eco-friendly vehicles are expected to decline year-over-year, and the positive impact from an improved product mix is expected to be limited.
Profitability is also expected to decline compared to the same period last year. Hanwha Investment & Securities estimated Hyundai Motor’s second-quarter operating profit margin at 6.3%. This represents a 1.2 percentage point decline year-over-year. This estimate reflects rising raw material prices, increased development costs due to expanded research and development (R&D) investment this year, and the potential for negative foreign exchange gains or losses related to sales warranty expenses resulting from end-of-period exchange rates.
However, revenue is expected to increase slightly year-over-year, driven by exchange rate effects. Hanwha Investment & Securities estimated Hyundai Motor’s second-quarter revenue at 48.477 trillion won, a 0.4% increase from the same period last year. Operating profit is projected to decrease by 15.7% to 3.037 trillion won.
Analyst Kim focused on the potential for a recovery in the second half of the year rather than the second-quarter slump. This is because the burden from tariffs is expected to ease as their impact enters a base period, and the launch of new models is set to gain momentum in key markets such as the U.S. and Europe.
In the North American market, hybrid sales are expected to increase with the launch of the all-new Avante and Tucson models in the third quarter. In Europe, the company is projected to recover from its recent sales slump by meeting demand for affordable electric vehicles through local production and sales of the Ioniq 3.
Beyond earnings, the robotics business was cited as a source of stock price momentum. Hyundai Motor Group is pushing for the commercialization of humanoid robots, and analysts believe that related expectations could be reflected in the stock price in the second half of the year. In particular, they anticipated that the mass-production development process for humanoid robots—which involves data collection, learning, motion generation, and validation—will gain full momentum with the launch of the RMAC facility in August.
Analyst Kim explained, “As the value chain for robot hardware components and software—aimed at field deployment in 2028—becomes more concrete, the validity of the stock’s upward trend—driven by high expectations for the robotics business despite somewhat lackluster earnings—will be proven.”
The possibility of expanding the stake in Boston Dynamics was also cited as a factor to watch. Hanwha Investment & Securities noted that substantial funding would be required to fully launch mass-production development in 2028, including Atlas demonstrations and pilot production. Accordingly, the firm judged that the possibility of annual capital increases for Boston Dynamics—which have been carried out every year since 2023—remains valid.
Furthermore, as the expiration date approaches for the buy-sell options among existing shareholders—which are contingent on a Boston Dynamics initial public offering (IPO)—the possibility of Hyundai Motor securing additional shares through Hyundai Motor Group’s global subsidiaries was also raised. The analysis suggests that if these options are exercised, the value of robotics assets reflected in Hyundai Motor’s common stock could increase.
The target price increase reflects the incorporation of a valuation premium. Hanwha Investment & Securities incorporated this year’s visible KOSPI valuation premium of 30% and a beta of 0.93 for completed vehicle stock prices into its calculation of Hyundai Motor’s business value. Accordingly, Hyundai Motor’s fair value was set at 764,343 won, with a target price of 760,000 won.
Analyst Kim commented, “While Hyundai Motor still faces earnings pressure in the second quarter, the impact of new models and robotics momentum are expected to continue in the second half of the year,” adding, “We are entering a phase where market expectations are being confirmed by actual results.”