[Alpha Biz=(Chicago) Reporter Paul Lee] DB Financial Investment predicted on the 29th that Kia's first-quarter operating profit will be sluggish compared to the same period last year.
"In the first quarter, we expected sales to increase by 7% year-on-year to 25.2636 trillion won and operating profit to fall by 7% to 2.6832 trillion won, which is in line with market consensus," DB Financial Investment said. "The sluggish profit is expected as negative factors such as decreased domestic sales and increased incentives deepen over the previous quarter."
DB Financial Investment, however, predicted that "the operating profit ratio of 10% will be maintained due to the exchange rate effect such as the weak won and solid wholesale sales in North America."
DB Financial Investment explained, "Profitability-related indicators are deteriorating, but it is worth noting that demand in major regions is showing a stable recovery." "Considering the weak won, we will raise our operating profit estimate by 2% this year," he said.
DB Financial Investment raised its target price from 115,000 won to 140,000 won. The investment opinion maintained 'Buy (Buy)'.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
