[THE INVESTOR] Hyundai Glovis has proved its sound fundamentals with relatively strong earnings amid growing uncertainties, said Mirae Asset Daewoo on Oct. 30 maintaining a “buy” recommendation and 190,000 won (US$166.20) target price.
Its operating profit climbed up 2.2 percent on-year to 187.1 billion won and revenue by 3.5 percent to 4.37 trillion won. Operating profit was slightly higher than expected and margins remained at the level of the previous quarter. Despite declining domestic car sales, logistics revenue increased 6.4 percent and marine transportation unit remained solid. Sales in Mexico and India have been strong and revenue from overseas operations inched up 0.4 percent, said analyst Ryu Je-hyeon.
Concerns over Hyundai Motor Group’s earnings have been growing recently from expanding risks in emerging markets, but Hyundai Glovis is comparatively stable, and revenue from China where uncertainties are highlighted, contributes only 2 percent, explained the analyst.
By Hwang You-mee (email@example.com)