"Half the Price of Hyundai Motor Company"... Samsung Securities Raises Kia's Target Price to 240,000 Won

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[Financial News] On the 1st, Samsung Securities raised its target price for Kia by 4.3% to 240,000 won, saying that both earnings growth and the value of its Hyundai Mobis stake are gaining attention. It kept its investment rating at "Buy."
Im Eun-young, an analyst at Samsung Securities, said, "Kia is posting the highest profitability among global automakers, driven by a higher share of hybrids and broad-based sales growth across markets." She added, "It has already surpassed the world-leading profitability that Toyota Motor Corporation has maintained."
Samsung Securities said Kia is relatively undervalued within the industry. It noted that Kia's price-to-earnings ratio is only about half that of Hyundai Motor Company, while its net cash of 19.6 trillion won as of the end of the first quarter and its Hyundai Mobis stake worth 12.8 trillion won together amount to roughly half of its market capitalization.
The firm also highlighted that Kia holds an 18.1% stake in Hyundai Mobis. Im said, "If an IPO of Boston Dynamics becomes more likely, discussions on restructuring Hyundai Motor Group's circular shareholding structure could accelerate, increasing the possibility that Kia sells its Hyundai Mobis stake and expands shareholder returns."
She explained, "The proceeds from selling the Hyundai Mobis stake could be used for share buybacks and cancellations," adding, "Based on the current stock price, that could create the effect of about 283 billion won in share repurchases."
dschoi@fnnews.com Choi Du-seon Reporter