"Hyundai Motor Company's Q2 Results Expected to Miss Estimates" Target Price Cut From 1.2 Million Won to 900,000 Won... Hankook Tire Sees a New 'Highest Target Price' of 120,000 Won [Stocktopia]

[Financial News] Here is a roundup of major brokerage reports as of the morning of July 21.
Hyundai Motor Company is likely to see a temporary slowdown in second-quarter results because of a parts supplier fire and production disruptions at an overseas plant. Still, its leadership in the humanoid robot market remains intact, according to analysts.
Hankook Tire & Technology's target price was sharply raised on the back of its early lead in the battery electric vehicle tire market. Hanwha Group was also seen as having room for a stock rebound as governance-related uncertainty eased after a corporate spin-off and capital increase at a subsidiary.
◆Hyundai Motor Company (005380)― KB Securities / Analyst Kang Sung-jin
- Target price: 900,000 won (down 25.0% from 1.2 million won) | Previous close: 399,000 won
- Investment rating: Buy (maintained)
KB Securities said Hyundai Motor Company will likely miss second-quarter expectations because of supply disruptions, but its medium- to long-term growth value centered on humanoid robots remains strong. The firm kept its 'Buy' rating while cutting the target price from 1.2 million won to 900,000 won.
Analyst Kang Sung-jin said second-quarter earnings fell short of market expectations as one-off factors such as parts supply disruptions and construction work at overseas plants came together.
However, Kang explained, "Although we have lowered our operating profit forecast for this year, it does not have a major impact on Hyundai Motor Company's valuation, which is built around humanoid robots and autonomous driving." In other words, the company's future growth value tied to robotics and self-driving technology remains intact despite the short-term earnings adjustment.
He added, "We maintain our previous view that demand for humanoid robots will begin to rise sharply from 2028 as the working-age population declines, and that Hyundai Motor Group will become the No. 1 player in the industrial humanoid market with a 60% share by 2035."※Humanoid robotA multipurpose robot designed with a human-like body structure and capable of performing movements similar to those of a human.
◆Hankook Tire & Technology (161390)― Meritz Securities / Analyst Kim Jun-seong
- Target price: 120,000 won (up 33.0% from 90,000 won) | Previous close: 70,100 won
- Investment rating: Buy (maintained)
Meritz Securities sharply raised its target price for Hankook Tire & Technology to 120,000 won, saying the company's differentiated strategy for the battery electric vehicle tire market is paying off. The new target is well above the roughly 100,000-won range that other brokerages had previously suggested.
Hankook Tire is targeting the global market with its BEV-exclusive tire brand, iON. Analyst Kim said, "Hankook Tire is supplying OE tires to U.S. and Chinese automakers including Tesla, BYD, Xiaomi, Huawei, and IM Motors," adding that "its first-mover advantage in the BEV tire market is also leading to supply contracts for new BEV models from legacy automakers such as Volkswagen and BMW."
According to Meritz Securities, BEVs are expected to account for 20% of global passenger car sales, up from 6%, and Hankook Tire's BEV share in OE sales is projected to rise from 5% in 2021 to 33% this year.
Kim also said, "BEVs still account for only 8% to 9% of Hankook Tire's RE sales," but added that "a full replacement cycle will begin in earnest starting this year." Since the BEV market began expanding in 2021 and tire replacement cycles usually run four to five years, he expects replacement tire demand to strengthen profitability further.※Battery electric vehicle (BEV)A vehicle that runs only on electric energy stored in a battery, without an internal combustion engine.※OE tireA tire installed on a new vehicle at the factory and delivered with the car.※Replacement tire (RE)A tire purchased in the market by a vehicle owner to replace a worn-out tire.
◆Hanwha Group (000880)― SK Securities / Analyst Choi Gwan-soon
- Target price: 130,000 won (down 23.5% from 170,000 won) | Previous close: 87,200 won
- Investment rating: Buy (maintained)
SK Securities cut its target price for Hanwha Group from 170,000 won to 130,000 won on July 21, reflecting a decline in net asset value after a drop in subsidiary share prices. However, it kept its 'Buy' rating, saying the stock has room to rebound after the corporate spin-off and relisting.
Analyst Choi Gwan-soon said, "Governance-related uncertainty, including the corporate spin-off and participation in the capital increase, which had been the main reason for the high discount, is being resolved, so a stock rebound is expected." He added, "The combined market capitalization after the relisting is likely to rise, so the stock remains attractive." The analysis suggests that once the governance-related events that had weighed on the share price are cleared, a revaluation of the business value will begin in earnest.※Corporate spin-offA restructuring method in which shareholders of the existing company receive shares in the newly created entity in proportion to their ownership.

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