Securities analysts: “Concerns about recent peak of Hyundai Motor have subsided”
“Stock price supported by plans to enhance corporate value”
“Comparable level to Toyota and Honda”,
Attendees at the ‘CEO Investor Day’ held at Conrad Hotel in Yeouido, Seoul on the afternoon of the 28th./Photo=Yonhap News,
, ‘Securities analysts have assessed that Hyundai Motor’s stock price will be supported by plans to enhance corporate value.’,
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, ‘Kim Gwi-yeon, an analyst at Daishin Securities, stated on the 29th, “Amid concerns over economic downturn, peak earnings, and exchange rate uncertainty leading to an expanding decline in industry stock prices, worries about selling at peak levels have persisted” and predicted that “considering shareholder return guidance and strategies for responding to the electric vehicle market (HEV, EREV), the stock price is expected to be supported firmly on the downside.”‘,
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, ‘Song Sun-jae, an analyst at Hana Securities, mentioned, “Hyundai Motor has been reaffirmed as one of the completed cars that can flexibly respond to changes in the market environment and expand investment capabilities” and explained, “Although market uncertainties have increased slightly, investment attractiveness is being maintained through steady profit flows, low valuations relative to performance, and excellent shareholder returns.”‘,
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, “At the ‘2024 CEO Investor Day’ held the previous day, Hyundai Motor announced a total shareholder return ratio (TSR) of over 35% for the period from 2025 to 2027. TSR refers to the ratio of the amount returned to shareholders through dividends and share buybacks from the company’s net profit.”,
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, ‘During this period, it plans to repurchase a total of 4 trillion won of treasury stocks, considering the TSR and return on equity (ROE) targets on an annual basis. The minimum dividend per share is set at 10,000 won based on common shares, with the quarterly dividend increased by 500 won from the previous level to 2,500 won.’,
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, ‘Lee Hyun-soo, an analyst at Yuanta Securities, evaluated, “They aim for an average ROE of 11-12% over three years and strive to achieve an operating profit margin (OPM) of over 10% in the medium to long term,” and added, “This is considered a strengthened policy compared to the medium to long-term shareholder return policy announced in April last year.”‘,
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, ‘He explained, “The core content of the existing policy is a dividend payout ratio of over 25% and a plan to cancel 1% of treasury stocks over three years, so there was no share repurchase or cancellation based on the TSR criteria, which was 25%,” and further detailed, “Accordingly, the TSR of 35% announced this time has expanded by 10 percentage points compared to the existing policy.”‘,
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, ‘This analyst stated, “Although it is difficult to make a simple comparison, the level is not inferior even compared to the shareholder return policies of competitors Toyota and Honda,” and added, “They believe that by announcing a policy that exceeds expectations in relation to the value-up program, it will lead to a positive response from investors.”‘,
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, ‘Jo Hee-seung, an analyst at iM Securities, also commented, “This should be a sufficient answer for Hyundai Motor shareholders,” and said, “It is expected to be a catalyst for further downward pressure on stock prices despite concerns about peak earnings.”‘,
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, ‘Hyundai Motor has set a target of increasing sales of hybrids (HEVs) to 1.33 million units by 2028, a 40% increase from the previous target. It plans to expand its lineup and pursue next-generation HEV systems, and introduce extended-range electric vehicles (EREVs) as a bridge role for EV slowdown, to be launched in North America (80,000 units) and China (30,000 units) in 2026. The EV sales targets are △ 300,000 units in 2024 △ 841,000 units in 2027 △ 2 million units in 2030.’,
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