[Edaily Reporter Kim Hyung-il ] HEUNGKUK METALTECH CO.,LTD. predicted that HYUNDAI CORPORATION(011760)could see further stock price revaluation if the company continues to invest in new businesses and expand shareholder returns, following the release of second-quarter earnings that significantly exceeded previous forecasts. The firm maintained its “Buy (BUY)” investment rating and target price.

On the 31st, Park Jong-ryeol, an analyst at HEUNGKUK METALTECH CO.,LTD., stated, “Consolidated revenue for the second quarter reached 2.8 trillion won, a 46.8% increase year-over-year, while operating profit rose 81.6% to 62.9 billion won, significantly exceeding previous forecasts.” He added, “Despite growing external uncertainties, operating performance continued to show a robust trend due to rising commodity prices and the weak won.”

By business segment, the steel division saw improved performance due to strong transactions with India, Europe, and North America, while the energy and commercial components division saw improved margins driven by strong demand for power distribution transformers. The passenger vehicle division recorded increased profits thanks to strong transactions in Latin America, Asia, and the Middle East, and the machinery and infrastructure division saw improved profitability based on increased demand for construction machinery and strong performance from the Economic Development Cooperation Fund (EDCF). The petrochemical division also contributed to improved performance thanks to strong demand for bunker fuel and jet fuel driven by rising oil prices. Furthermore, the absence of one-time expenses led to an improvement in non-operating income, resulting in a significant year-over-year increase in pre-tax profit.

HEUNGKUK METALTECH CO.,LTD. forecasts consolidated revenue of 10.1 trillion won and operating profit of 211.7 billion won for this year. Although uncertainty in the global business environment persists due to the U.S. tightening its tariff policies, the firm expects most business units—led by steel, passenger vehicles, and energy and commercial vehicle components—to continue posting solid results, including the Machinery & Infrastructure and Petrochemicals divisions.

Analyst Park stated, “The company is pursuing business diversification through investments in new ventures, such as the acquisition of parts manufacturers and the Australian construction equipment wholesale business,” adding, “If shareholder returns—including dividends and share buybacks—are expanded alongside improved earnings, further stock price revaluation is possible.” He continued, “Although we have raised our earnings forecasts for 2026–2027, we have maintained our target price,” adding, “Based on 12-month forward metrics, the price-to-earnings ratio (PER) stands at 2.3x and the price-to-book ratio (PBR) at 0.3x, indicating the stock remains undervalued.”