Hyundai Motor's Second-Half Momentum: Spotlight on "Autonomous Driving, Robotics, and New Models" [Click eStock]

On September 29, Daol Investment & Securities maintained its "Buy" investment opinion and target price of 6.4 million won for Hyundai Motor Company, stating that the company’s earnings recovery will become more visible in the second half of this year based on three key momentum drivers: autonomous driving, robotics, and new vehicle launches (Tucson and Avante).

Wooong Yoo, researcher at Daol Investment & Securities, commented, “Hyundai Motor’s production and sales performance appears to have passed its trough as of the second quarter. Although the third quarter results will inevitably be somewhat sluggish due to the impact of the strike, a sales recovery led by new models such as the Tucson and Avante is expected from the fourth quarter onward.”

Yoo added, “Hyundai Motor’s U.S. market share reached a record high of 6.8% as of August, proving its strong fundamentals in overseas markets. A rebound in domestic and European sales, which were sluggish through the third quarter, is also expected to begin in earnest from the fourth quarter in a year-on-year (YoY) comparison.”

He continued, “Through its compact SUV lineup—including the Venue, Kona, and Tucson—Hyundai Motor has successfully contained incentive costs. In addition, if the Tucson Hybrid (HEV) based on TMED-II is introduced to the U.S. market in 2027, the company’s trend of expanding market share is likely to continue.”

Performance in the robotics business was also cited as a key catalyst for further gains. Yoo noted, “With the opening of Boston Dynamics’ (BD) Meta-Plant Robot Training Center (RMAC), it was confirmed that mass production of the Atlas model, which was revealed at CES earlier this year, has begun for the first time. The number of units in mass production is expected to rise rapidly from the second half of 2027, driving a re-rating of the automotive business’s valuation as robotics becomes an in-house strength.”

He stated, “Operating profit for the third quarter is expected to reach approximately 2.5 trillion won, and the production disruption caused by the strike (around 50,000 units) should be largely offset through overtime production in October, November, and December. The current share price stands at a price-to-earnings ratio (PER) of 6.4 times based on estimated 2027 earnings per share (EPS), indicating very high valuation appeal.”

This content was produced with the assistance of AI translation services.