Hyundai Motor Securities, Hyundai Motors target price ↓… “Poor performance expected due to strike and exchange rate”

(Seoul = Yonhap News) Reporter Kyung Soo-hyun = Hyundai Motor Securities lowered its target stock price for Hyundai Motors [005380] from 630,000 won to 500,000 won on the 12th, saying that operating profit in the third quarter is expected to fall below market expectations due to the strike and exchange rate fluctuations.

Hyundai Motor Company's closing price on the previous trading day was 324,500 won.

Researcher Jang Moon-soo analyzed in the report that Hyundai Motor Company's third quarter operating profit would be KRW 2.3502 trillion, down 7.4% from the same period last year and 16.6% lower than market expectations (about KRW 2.8194 trillion).

Researcher Jang cited the burden of the falling won/dollar exchange rate and production disruptions due to domestic strikes as the factors behind the poor performance in the third quarter.

He also lowered his annual operating profit forecasts for this year and next year by 12.5% ​​and 17.4% to 10.249 trillion won and 11.08 trillion won, respectively.

However, he suggested that the investment strategy for Hyundai Motors was 'buy' as before, saying that the recent impact of exchange rates and weakening momentum in robotics and autonomous driving are believed to be largely reflected in the stock price.