[E-Daily Reporter Hyera Lee ] On the 10th, EUGENE INVESTMENT & SECURITIES projected that Hyundai Motor Co. ( HyundaiMotor(005380)) would report second-quarter earnings slightly below market expectations. However, given the planned launch of new models and expansion of its electric vehicle lineup in the second half of the year, the firm assessed that investors should view this earnings trough as a buying opportunity. While maintaining its “Top Pick” rating within the sector, the firm lowered its target price to 900,000 won.

Lee Jae-il, an analyst at EUGENE INVESTMENT & SECURITIES, stated in a report released today, “The recent decline in the stock price is due to profit-taking following a short-term surge, weak second-quarter earnings, and the market having already priced in expectations related to artificial intelligence (AI).” He added, “Since this is not a fundamental issue, the weak second-quarter earnings should be viewed as a buying opportunity.”
EUGENE INVESTMENT & SECURITIES estimated HyundaiMotor’s second-quarter revenue at 48.8 trillion won and operating profit at 3.1 trillion won. This represents a 1.2% increase and a 14.4% decrease, respectively, compared to the same period last year, and is expected to fall slightly short of market expectations.
The analyst assessed that the weak second-quarter earnings were the result of factors such as sluggish sales and the lack of new electric vehicle models.
In particular, the analyst estimated that second-quarter wholesale sales, excluding China, totaled 970,000 units, a 6.2% decrease from the same period last year. The analyst explained, “During this gap in the new vehicle lineup, a combination of factors had a negative impact, including disruptions in parts supply due to a fire at Safety Industrial, a decline in local plant operating rates caused by a fire at Mobiis Co., Ltd. in India, and a decrease in exports to the Middle East stemming from the U.S.-Iran conflict.” However, he added, “Ahead of the launch of the new Avante and the full model change for the Tucson in the second half of the year, aging models among the company’s mainstay vehicles and pent-up demand also emerged.”
In the electric vehicle (EV) sector, a lack of new model launches compared to KIA CORPORATION was cited as a factor contributing to the sluggish performance. The analyst noted, “We posted weaker results compared to KIA CORPORATION, which is making strong gains in the domestic market by focusing on new EV models,” and pointed out that “Tesla’s expanding sales and the entry of Chinese EV manufacturers into the domestic market are also contributing factors.”
However, he projected that sales would recover starting in the second half of the year. He predicted, “Following the all-new Grandeur’s rise to the top of the monthly sales charts in its first month, a hybrid model is scheduled to be added, and the launch of the all-new Tucson and Avante will also fill the gap in new model offerings.” He further predicted, “The launch of the Ioniq 3 and the expansion of the Genesis hybrid lineup next year will serve as catalysts for a rebound in EV sales.”
The analyst stated, “The recent decline in stock prices is due to profit-taking following a short-term surge, weak second-quarter earnings, and the fact that AI-related expectations have already been factored into the market,” adding, “Since this is not a fundamental issue, I recommend viewing the weak second-quarter earnings as a buying opportunity.”