[Edaily Reporter PARK MIN ] On the 8th, SANGSANGINVESTMENT&SECURITIES maintained its “Buy (BUY)” investment rating and target price of 320,000 won for HYUNDAIGLOVIS Co.,LTD(086280), stating that while short-term earnings volatility is expected due to macroeconomic factors such as high oil prices and a weakening exchange rate, the company’s structural medium- to long-term growth fundamentals remain solid. This represents a 59.2% upside potential compared to the previous trading day’s (October 6) closing price of 201,000 won.

SEOYON, an analyst at SANGSANGINVESTMENT&SECURITIES, stated in a report published today, “While short-term earnings volatility is expected due to changes in the macroeconomic environment, the medium- to long-term organic growth thesis remains valid.” She added, “Exports of automobiles to China—the core driver of non-affiliated sales—are growing rapidly, and amid tight global capacity for car carriers (PCTCs), the company is expected to secure market share by expanding its long-term chartered fleet.”

According to SANGSANGINVESTMENT&SECURITIES, HYUNDAIGLOVIS Co.,LTD’s third-quarter consolidated revenue is estimated at 8.2488 trillion won, a 12.2% increase year-over-year, while operating profit is projected to rise 2.4% to 536.8 billion won. The operating profit margin is expected to be around 6.5%, slightly below the market consensus.

Although the company is gradually passing on fuel costs—which were reflected in the first half of the year—to shippers through the application of a Bunker Adjustment Factor (BAF), the prolonged war in the Middle East has kept bunker fuel prices high, partially offsetting the pass-through effect. Furthermore, analysts note that the average won-dollar exchange rate fell by about 6% compared to the previous quarter, which weighed on shipping revenue—where a large portion is settled in dollars—as well as on timing-related gains and losses in the completely knocked-down (CKD) segment.

Despite short-term macroeconomic headwinds, the company’s core business growth momentum is assessed as robust. With China’s auto exports surging 68% since the beginning of the year, the company is aggressively securing shipping capacity by continuously expanding its long-term charter fleet. Analysts anticipate that the expansion of the non-affiliated carrier share in the PCTC segment—and the resulting structural margin growth—will gain full momentum by next year as the fleet expansion continues.

SANGSANGINVESTMENT&SECURITIES forecasts HYUNDAIGLOVIS Co.,LTD’s 2026 annual revenue at 32.9333 trillion won and operating profit at 2.1006 trillion won. The firm expects the upward trend in earnings to continue in 2027, with revenue reaching 33.5894 trillion won and operating profit hitting 2.3936 trillion won.

Analyst SEOYON stated, “‘HYUNDAIGLOVIS Co.,LTD’s current stock price is trading at a 12-month forward price-to-earnings ratio (PER) of 8x, which is lower than the global peer average of 11x,’ adding, ‘Since the sharp rise in the stock price seen at the beginning of the year—driven by the spotlight on the value of its stake in Boston Dynamics (BD)—has largely normalized, a revaluation of the stock price is possible as the macroeconomic environment stabilizes.’”