Corporate Logo(source: kiamedia.com)
Shinhan Investment Corp. raised its target price for Kia (000270) by 13% to 130,000 won from the previous 115,000 won on July 10, citing attractive valuation despite ongoing tariff risks. The brokerage maintained its “Buy” rating.
Park Kwang-rae, an analyst at Shinhan Investment Corp., stated, “Despite concerns over failed tariff negotiations, a stronger Korean won, and intensifying price competition in the European EV market, expectations are rising. This is driven by an improved product mix focused on hybrids and recreational vehicles (RVs), the expansion of mid- to low-priced electric vehicles and purpose-built vehicles (PBVs), and the prospect of more aggressive shareholder returns.”
He added, “We raised our target price despite downward revisions in earnings forecasts, reflecting a decline in the market risk premium. Once tariff-related uncertainties are resolved, a re-rating of the stock remains highly probable.”
Kia’s second-quarter results are expected to miss market expectations. The company is projected to post revenue of 28.8 trillion won, up 4.4% year-on-year, with operating profit down 20.7% to 2.9 trillion won. These figures fall short of the market consensus of 29.1 trillion won in revenue and 3.0 trillion won in operating profit.
Park noted, “The rise in the average exchange rate during the quarter and a drop at the end of the period are expected to generate around 380 billion won in FX-related gains, including the reversal of warranty provisions. Additionally, increased global sales and an improved product mix are expected to contribute approximately 80 billion won. However, the inclusion of tariff-related costs will likely result in a year-on-year decline in earnings.”
*[KOSPI] Kia(000270) is a leading domestic automobile manufacturer, with a diverse lineup including Morning, Stinger, K9, Sorento, and EV9, and is expanding its Purpose-Based Mobility(PBV) and service businesses aiming to provide sustainable mobility solutions. The market capitalization is 39.649 trillion won (as of July 9, 2025, closing price).
Corporate Logo(source: kiamedia.com)
Shinhan Investment Corp. raised its target price for Kia (000270) by 13% to 130,000 won from the previous 115,000 won on July 10, citing attractive valuation despite ongoing tariff risks. The brokerage maintained its “Buy” rating.
Park Kwang-rae, an analyst at Shinhan Investment Corp., stated, “Despite concerns over failed tariff negotiations, a stronger Korean won, and intensifying price competition in the European EV market, expectations are rising. This is driven by an improved product mix focused on hybrids and recreational vehicles (RVs), the expansion of mid- to low-priced electric vehicles and purpose-built vehicles (PBVs), and the prospect of more aggressive shareholder returns.”
He added, “We raised our target price despite downward revisions in earnings forecasts, reflecting a decline in the market risk premium. Once tariff-related uncertainties are resolved, a re-rating of the stock remains highly probable.”
Kia’s second-quarter results are expected to miss market expectations. The company is projected to post revenue of 28.8 trillion won, up 4.4% year-on-year, with operating profit down 20.7% to 2.9 trillion won. These figures fall short of the market consensus of 29.1 trillion won in revenue and 3.0 trillion won in operating profit.
Park noted, “The rise in the average exchange rate during the quarter and a drop at the end of the period are expected to generate around 380 billion won in FX-related gains, including the reversal of warranty provisions. Additionally, increased global sales and an improved product mix are expected to contribute approximately 80 billion won. However, the inclusion of tariff-related costs will likely result in a year-on-year decline in earnings.”
*[KOSPI] Kia(000270) is a leading domestic automobile manufacturer, with a diverse lineup including Morning, Stinger, K9, Sorento, and EV9, and is expanding its Purpose-Based Mobility(PBV) and service businesses aiming to provide sustainable mobility solutions. The market capitalization is 39.649 trillion won (as of July 9, 2025, closing price).