[Edaily Reporter KIM YOON-JEONG ] DaishinSecurities forecast that HYUNDAIGLOVIS Co.,LTD(086280)will see its medium- to long-term freight rate improvement trend expand through 2027, as the effects of rising freight and charter rates for car carriers (PCTCs) are fully reflected and cargo volumes of finished vehicles bound for China increase. The firm newly set a target price of 320,000 won and an investment rating of “Buy.”

On the 29th, Lee Ji-ni, an analyst at DaishinSecurities, stated, “We expect the medium- to long-term trend of freight rate improvement to expand through 2027, as the effects of rising PCTC freight and charter rates are fully reflected and freight volumes of finished vehicles bound for China increase.”
Increased demand for non-affiliated Chinese finished vehicles and heavy construction machinery (High & Heavy, H&H) is expected to have a positive impact on HYUNDAIGLOVIS Co.,LTD’s PCTC performance. The analyst noted, “The Chinese automotive industry is targeting overseas markets, and finished vehicle exports have expanded from approximately 3.11 million units in 2022 to 7.06 million units in 2025,” adding, “In the first half of this year, exports already reached 5.1 million units, a 65% increase compared to the same period last year. In particular, as the share of exports to Europe and Latin America has grown, this has been accompanied by an increase in ton-miles.” Consequently, the analyst predicted that as HYUNDAIGLOVIS Co.,LTD’s non-affiliated cargo volume increases, the upside potential for PCTC revenue will also grow.
He noted, “Growing demand for heavy construction machinery will also drive PCTC cargo volume,” explaining, “Exports of construction machinery are growing, fueled by a recovery in global infrastructure investment and the expansion of critical mineral development.” He further analyzed, “Since H&H has a high space utilization rate per unit, its freight rates are 30% higher than those for passenger cars, which can boost overall revenue and margins.”
The analyst explained, “The company’s secured H&H volume has expanded from approximately 2 million CBM in 2024 to about 3 million CBM on a one-year contract basis.”
Amid limited PCTC vessel capacity, the analyst projected that rising demand would support higher freight rates. The analyst assessed, “The total PCTC order backlog amounts to only about 24% of existing capacity, so supply growth will be limited.” He added, “Consequently, PCTC charter rates are rising again toward the $100,000 range,” and predicted, “As part of its medium- to long-term PCTC operating strategy, the company plans to increase the proportion of fixed-rate tonnage to 67% by 2029 to secure a stable fleet and strengthen its cost competitiveness.”