[Infostock Daily= Reporter An Hoe Hyun] Hana Financial Investment lowered its investment opinion on Hyundai Glovis from Buy to Neutral. It judged that the stock price has soared due to expectations of a restructuring of its governance structure since Hyundai Motor Group Chairman Chung Eui-sun's recent formalization of the system, which has exhausted its upward momentum.
Shares of Hyundai Glovis rose 25% over the 10-day period from the 13th to the 23rd, when the possibility of appointing Chung Eui-sun was raised. Stock prices also surpassed the 200,000 won mark on the 21st. This is due to the expectation that Hyundai Glovis, which has a high stake in Chairman Chung, will be the core of Hyundai Motor Group's governance restructuring in the future.
Regarding Hyundai Glovis' performance in the third quarter, the absolute size of its operating profit met market expectations despite its shrinking appearance. Hyundai Glovis' third-quarter sales and operating profit fell 23% and 38% year-on-year to 3.7 trillion won and 161.4 billion won, respectively.
However, Hana Financial Investment raised the target stock price of Hyundai Glovis by 33.3% from 150,000 won to 200,000 won. "Hyundai Glovis is preparing a new business related to hydrogen and electric vehicle batteries," the company said, adding, "While there is expected to be a need for funds for the purchase of transportation equipment and batteries during actual commercialization, the company expects to contribute step-by-step sales depending on the speed of the actual ecosystem."
Reporter An Hoe Hyun ahh@infostock.co.kr
