Hyundai Motor's target price has been lowered.
It is understood that the disruption in supply and demand of semiconductors for vehicles may have led to a drop in wholesale sales in major regions in the third quarter, falling short of market estimates.
Kiwoom Securities lowered Hyundai Motor's target price from 320,000 won to 290,000 won on the 15th. The investment opinion maintained a 'buy'.
"Hyundai Motor is expected to have posted earnings below market estimates in the third quarter due to production shortages due to intensified supply and demand of semiconductors for automobiles.
It also adjusted its target price due to lower earnings estimates," said Kiwoom Securities. Hyundai Motor is estimated to have posted sales of 27.487 trillion won and operating profit of 1.5807 trillion won on a consolidated basis in the third quarter.
Sales fell 1.9% from the third quarter of 2020 and operating profit and loss shifted from deficit to surplus. Compared with market estimates, sales fell 6.8% and operating profit decreased 9.1%. It was found that car sales declined in the third quarter due to production disruptions due to supply and demand problems for semiconductors for vehicles.
Hyundai Motor sold 154,747 cars in South Korea, 151,558 cars in the U.S. and 124,789 cars in Western Europe in the third quarter.
Compared to the third quarter of 2020, Korea decreased by 22.3%, the United States by 6.1%, and Western Europe by 2.0%. In India, 127,908 cars were sold in China, down 44.3% from a year ago, to 65,870 cars.
Hyundai Motor is expected to generate 116.5183 trillion won in sales and 7.684 trillion won in operating profit on a consolidated basis in 2021. Sales are up 12% and operating profit is up 195.2% from 2020.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
