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Kia (photo = Yonhap news) |
[Alpha Biz= Reporter Paul Lee] Yuanta Securities raised its target stock price from 120,000 won to 135,000 won, saying Kia's share price return ratio (PER) could rise by six times.
"Kia has a 20 to 35 percent dividend propensity due to its shareholder return policy and has announced 500 billion won in annual stock purchase and 50 percent retirement over five years," Yuanta Securities said. "As Kia recorded a 15 to 20 percent return on equity (ROE) between 2021 and 2023 and is expected to be in the mid to late 10 percent this year, the PER is expected to be six times higher this year."
"Global demand for HEVs, which was thought to be a stopover in the process of moving from ICEs to EVs, is showing a positive trend," Yuanta Securities said. "Sales of HEVs in the U.S. fell 4% year-on-year in 2022, but are believed to have increased by 53% compared to last year." "In the January-February period of this year, EV sales in the United States rose 13% year-on-year, and HEV estimates a 57% increase," he added.
"Kia expects to respond to the changed market by expanding HEV investment by raising its new five-year investment plan by about 5 trillion won compared to the existing five-year investment plan," Yuanta Securities said.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
