April 24, 2024

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[THE INVESTOR] Kia Motors’ earnings will improve in the latter half, said Eugene Investment and Securities on July 30, maintaining a “buy” recommendation and 38,000 won (US$34.11) target price.

Its average sale price both at home and abroad in the second quarter rose from the same period last year and in global markets except in the US is on an upturn. Boosted by the launch of new cars, its major parts supplier Hyundai Wia’s revenue from the automobile sector hiked 18.9 percent from the previous quarter and operating profit turned to black, said analyst Lee Jae-il.

The carmaker’s revenue in the third quarter will fall 4.5 percent on-year to 13.5 trillion won but operating profit will turn to black at 545.4 billion won. Significant improvement in won-dollar exchange rate will boost its price competitiveness in emerging markets. Apart from external variables based on trade conflicts, its performance in the second half will improve, according to the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)