"Hyundai Motor Company to 500,000 won, Kia Corporation to 190,000 won" – Buy Recommendations; Korea Zinc Target Price Raised 80% on Surging Silver Prices [Stocktopia]

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According to The Financial News, here is a summary of major securities firm reports from the morning of January 29.
Although Kia Corporation’s operating profit declined last year, analysts say its growth potential remains intact thanks to new model launches and efforts to achieve this year’s sales target of 3.35 million units, as well as expansion in the European and Indian markets. Korea Zinc is expected to see the share of silver in its revenue rise to 47% on the back of surging prices for silver and gold, with operating profit projected to grow 28.1% this year. Samsung C&T is forecast to benefit from a semiconductor upcycle, the Pyeongtaek P5 semiconductor plant project, and an expanding portfolio of energy projects, leading to an earnings recovery from the second quarter onward.
\r\n\r\n◆Kia Corporation (000270)― Yuanta Securities Korea / Analyst Kim Yong-min
- Target price: 190,000 won
- Investment opinion: Buy
Yuanta Securities Korea stated that Kia Corporation’s full-year operating profit last year fell 28.3% year-on-year to 9.0781 trillion won, but emphasized that identifying this year’s growth potential is more important, setting a target price of 190,000 won. Analyst Kim Yong-min explained that Hyundai Motor Company’s share price has risen sharply as its valuation multiple expanded, widening the market capitalization gap with Kia Corporation, and argued that this gap enhances Kia’s investment appeal from a long-term perspective.※ Valuation multiple expansionThis refers to a situation where investors assign a higher value to the same level of earnings because they have greater confidence in the company’s future growth, even without an actual increase in current earnings. Hyundai Motor Company’s share price has climbed as its valuation multiple expanded on expectations for new businesses such as robotics and urban air mobility (UAM).
\r\n\r\n◆Korea Zinc (010130)― Shinhan Securities / Analyst Kwangrae Park
- Target price: 1.7 million won (raised from 950,000 won)
- Investment opinion: Not provided
Shinhan Securities commented that surging prices for metals such as silver and gold are driving Korea Zinc’s earnings, and raised its target price by 78.9% to 1.7 million won from 950,000 won. Analyst Kwangrae Park projected that higher prices for key metals — silver (up 40.1%), gold (up 20.4%), and copper (up 14.0%) — will underpin earnings improvement, with fourth-quarter operating profit last year expected to increase by about 40% quarter-on-quarter.
\r\n\r\n◆Samsung C&T (028260)― Shinhan Securities / Analyst Eun Kyung-wan
- Target price: 350,000 won (raised from 270,000 won)
- Investment opinion: Not provided
Shinhan Securities stated that Samsung C&T is expected to narrow the discount to its net asset value, supported by benefits from a semiconductor boom, contributions from new businesses, and an expanded shareholder-return policy. Analyst Eun Kyung-wan explained that while the trading, leisure, and food & beverage divisions were weak in the fourth quarter of last year due to seasonal factors, the construction and fashion divisions performed strongly, delivering results in line with market expectations.
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sms@fnnews.com Seong Min-seo Reporter