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Photo = Hyundai Motor |
[Alpha Biz= Reporter Kim Minyoung] On the 29th, Daishin Securities stated that Kia is likely to undertake additional share buybacks following its third-quarter earnings announcement and expects the stock price to trend upwards due to renewed momentum from new car launches in India in 2025. The investment recommendation remains "Buy," with a target price of 195,000 won.
Daishin Securities mentioned, “The fair value based on the price-to-earnings ratio (PER) and price-to-book ratio (PBR) is estimated at 200,000 won and 190,000 won, respectively. Short-term performance and value momentum are somewhat limited.” However, they also noted, “The likelihood of additional share buybacks in the third quarter is high, and the stock price is expected to rise in the medium to long term due to the renewed new car momentum in India starting in 2025.”
Kia recently reported a 5% increase in second-quarter revenue year-over-year to 27.6 trillion won, and a 7% rise in operating profit to 3.6 trillion won, which met market expectations but fell short of Daishin Securities’ estimate of 4.1 trillion won.
Daishin Securities attributed the shortfall to a lower-than-expected increase in average selling prices (ASP) and its limited leverage effect.
Additionally, Daishin Securities detailed that second-quarter wholesale sales decreased by 2% year-over-year to 795,000 units. Regionally, sales in Korea fell by 8% to 138,000 units, North America increased by 6% to 278,000 units, Europe decreased by 12.5% to 146,000 units, India fell by 15% to 61,000 units, and Latin America increased by 7% to 39,000 units.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
