Corporate Logo(source: hyundai.com)
Shinhan Investment Corp. stated on July 10 that Hyundai Motor (005380) has already priced in tariff-related concerns and that a phased buying strategy may be appropriate in anticipation of the year-end dividend season. The firm maintained its “Buy” rating and raised its target price from 250,000 won to 270,000 won.
Park Kwang-rae, an analyst at Shinhan Investment Corp., projected that Hyundai Motor’s second-quarter revenue would reach 45.9 trillion won, up 1.9% year-on-year, while operating profit is expected to come in at 3.3 trillion won, falling short of market expectations.
Park explained, “Although a higher average exchange rate during the quarter and a lower end-period rate are expected to contribute approximately 400 billion won in profit compared to the same period last year, operating profit from the automotive division is forecast to decline 30% year-on-year to 2.5 trillion won. This is due to a greater mix of small vehicles in Europe and India, increased incentives, and the recognition of tariff-related costs.”
He added, “While a decline in earnings appears unavoidable in 2026—when tariff impacts will be fully realized—we expect profitability to recover to 2025 levels by 2027, supported by a weaker currency and pricing power.”
Park also noted, “In the current tariff environment, Hyundai has the opportunity to maintain profitability while simultaneously increasing market share through price adjustments. A phased buying strategy is advisable, as it hedges against upside risk from potential tariff relief while positioning for the upcoming year-end dividend season.”
*[KOSPI] Hyundai Motor Company(005380) is a leading domestic automobile manufacturer with a lineup of Genesis, Kona, and Palisade, etc. The market capitalization is 42.896 trillion won (as of July 9, 2025, closing price).
Corporate Logo(source: hyundai.com)
Shinhan Investment Corp. stated on July 10 that Hyundai Motor (005380) has already priced in tariff-related concerns and that a phased buying strategy may be appropriate in anticipation of the year-end dividend season. The firm maintained its “Buy” rating and raised its target price from 250,000 won to 270,000 won.
Park Kwang-rae, an analyst at Shinhan Investment Corp., projected that Hyundai Motor’s second-quarter revenue would reach 45.9 trillion won, up 1.9% year-on-year, while operating profit is expected to come in at 3.3 trillion won, falling short of market expectations.
Park explained, “Although a higher average exchange rate during the quarter and a lower end-period rate are expected to contribute approximately 400 billion won in profit compared to the same period last year, operating profit from the automotive division is forecast to decline 30% year-on-year to 2.5 trillion won. This is due to a greater mix of small vehicles in Europe and India, increased incentives, and the recognition of tariff-related costs.”
He added, “While a decline in earnings appears unavoidable in 2026—when tariff impacts will be fully realized—we expect profitability to recover to 2025 levels by 2027, supported by a weaker currency and pricing power.”
Park also noted, “In the current tariff environment, Hyundai has the opportunity to maintain profitability while simultaneously increasing market share through price adjustments. A phased buying strategy is advisable, as it hedges against upside risk from potential tariff relief while positioning for the upcoming year-end dividend season.”
*[KOSPI] Hyundai Motor Company(005380) is a leading domestic automobile manufacturer with a lineup of Genesis, Kona, and Palisade, etc. The market capitalization is 42.896 trillion won (as of July 9, 2025, closing price).