[Edaily Reporter kyoungeun kim ] KB Securities has set a target price of 900,000 won for HyundaiMotor(005380), a 25% reduction from the previous target. This adjustment comes as the company’s second-quarter operating profit is projected to fall significantly short of market expectations due to domestic and international production disruptions and exchange rate fluctuations, and reflects a shortened projection period for valuation in light of recent increased stock market volatility.
On the 21st, Kang Seong-jin, an analyst at KB Securities, explained, “Although we are lowering our 2026 operating profit forecast, this has no significant impact on HyundaiMotor’s valuation, which is centered on humanoids and autonomous driving.” He added, “However, considering the increased market volatility, we have shortened the projection period included in the valuation from 2037 to 2034 and lowered the target price accordingly.”
Kang went on to say, “HyundaiMotor’s second-quarter operating profit is projected to be 2.7123 trillion won (down 24.7% year-over-year, up 7.9% quarter-over-quarter), falling short of the market consensus and HYUNDAI MOTOR SECURITIES’ previous forecast by 10.3% and 9.9%, respectively.”
He cited production disruptions and exchange rates as the reasons for the slump. “Wholesale sales excluding China in the second quarter totaled 971,000 units, falling short of the previous forecast by 23,300 units (2.3%),” he explained, adding, “This is a factor contributing to the downward revision of the operating profit forecast by 177.3 billion won.” Specifically, he noted, “Domestic sales were 20,000 units lower than expected due to the impact of a fire at a parts supplier in March, and European sales were 15,000 units lower than expected due to a production halt caused by construction work on the electric vehicle line at the Turkish plant.” He added, “Furthermore, as the year-end won-dollar exchange rate stood at 1,549 won—5.1% higher than expected—an additional 223.2 billion won in sales warranty expenses was recognized compared to the previous estimate.”
However, he noted, “The decline in second-quarter operating profit primarily reflects production disruptions caused by the fire and production line construction, and it does not significantly affect the annual operating profit forecast,” emphasizing that the recent weak performance stems from temporary factors rather than structural issues.
Analyst Kang highlighted the humanoid robot business as a medium- to long-term growth driver. He said, “Boston Dynamics recently projected that the humanoid market will exceed $5 trillion by 2050; in light of this, KB Securities’ forecast ($663 billion by 2035) is not aggressive.”
He added, “KB Securities maintains its previous forecast that demand for humanoid robots will begin to rise in earnest starting in 2028 alongside a decline in the working-age population, and that HyundaiMotor Group will become the market leader, capturing 60% of the industrial humanoid robot market by 2035.”