[E-Daily Reporter Hyera Lee ] On the 14th, DaishinSecurities maintained its “Buy” rating on HyundaiMotor(005380), stating that while second-quarter earnings are expected to fall short of market expectations, a stock price rebound is possible based on new vehicle launches and momentum in the robotics business. The target price was lowered from 770,000 won to 740,000 won to reflect a revaluation of the robotics business.

Kim Gwi-yeon, an analyst at DaishinSecurities, stated, “On a consolidated basis, second-quarter revenue is expected to be 48 trillion won and operating profit 2.7 trillion won, down 1% and 25% year-over-year, respectively, and below market expectations.”
Analyst Kim added, “Increased incentives due to sluggish sales and aging models weighed on profitability.”
The automotive division is estimated to post revenue of 36 trillion won and operating profit of 1.9 trillion won, down 3% and 30%, respectively, from the previous year. Despite favorable exchange rates and an expanded share of North American sales, the decline in consolidated wholesale sales and increased incentives in North America were cited as the main causes of the weak performance.
However, DaishinSecurities projected that both earnings and the stock price are highly likely to rebound starting in the second half of the year. Analyst Kim highlighted four key drivers: △improved earnings driven by the launch of the new Grandeur, Tucson, and Avante, as well as base effects; △the CEO Investor Day (CID) in August; △the commencement of operations at the Lotte MetaPlant Application Center (RMAC) in the third quarter; and △a recovery in investor sentiment toward robotics.
Analyst Kim stated, “Although the stock price has fallen significantly from its annual high due to market corrections, noise surrounding Boston Dynamics (BD), and earnings concerns, the growth story related to physical AI—which the market is focusing on—remains unchanged.” He added, “Considering the company’s leading role in the group’s physical AI business, we maintain our view that it is the top pick in the sector.”