Hyundai Motor, Target Price Drops 18% as Expectations for New Businesses Disappear... SK Innovation: "11% Stock Drop Due to Merger Is Excessive" [Stocktopia]
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- 2026-08-27 11:13:42
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- 2026-08-27 11:13:42
/Photo = News1 [Financial News] Here is a summary of reports from major securities firms for the morning of August 27.
Hyundai Motor received an assessment that while its core business profitability remains solid, market expectations have cooled due to the lack of additional news regarding new businesses such as humanoid robots and autonomous driving.
SK Innovation was assessed as having an excessive stock price drop of over 11% following the announcement, given that the impact of the merger with SKIET on the company's financial strength is expected to be limited.
The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul.
Transformer manufacturer Sanil Electric is expected to further strengthen its competitiveness in securing renewable energy and data center package orders through its entry into the ultra-high voltage transformer market.
The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul.4%, from 760,000 won) | Previous Day's Closing Price: 408,000 won - Investment Opinion: Buy (Maintain) NH Investment & Securities lowered its target price for Hyundai Motor to 620,000 won, stating that while the trend of profitability improvement in its core business remains solid, concrete updates on the new business strategy that the market had been expecting were missing.However, considering the effect of new car launches in the second half of the year, the investment recommendation was maintained at 'Buy.' Analysis analyst Ha-neul stated, "Hyundai Motor expressed confidence in profitability improvement by raising its 2030 operating profit margin guidance from the previous 8–9% to over 9%," but added, "Considering that the pace of new business development across physical AI, including humanoid robots and autonomous driving, is slower than that of competitors, a 10% discount was applied when calculating the target price.
" This means that while the company's core business capabilities are acknowledged, expectations have been lowered as there has been a lack of new developments in robotics and autonomous driving.
The decline in the won-dollar exchange rate was also cited as a factor dragging down profit estimates.
Analysis analyst Ha predicted, "The company will continue its earnings recovery trend through the arrival of a new car cycle in the second half and expanded sales centered on hybrids.
" ※Physical AI This refers to AI that goes beyond operating only on a screen and moves in the real world with a physical body, such as robots or cars.
Autonomous vehicles and humanoid robots are prime examples; they perceive their surroundings, make independent decisions, and even perform physical actions.SK Innovation, 11% Plunge Was Excessive (Shinyoung Securities) ◆ SK Innovation (096770) ― Shinyoung Securities / Analyst Shin Hong-ju - Target Price: 190,000 KRW (Maintain) | Previous Day's Closing Price: 111,200 KRW Shinyoung Securities maintained its Buy rating and a target price of 190,000 KRW, stating that the impact of the merger of its battery separator subsidiary, SKIET, on SK Innovation's fundamentals is limited.04% the day after the merger announcement, the assessment is that the decline was excessive.
The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul.
Researcher Shin Hong-ju stated, "This merger is a preemptive measure to prevent the downgrade in SKIET's credit rating from spreading into financial risk for the entire SK Innovation Group, and is part of the battery business restructuring that began late last year," adding that "the impact on SK Innovation's overall fundamentals is limited.
The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul." The analysis suggests that there are actually benefits as well.The explanation is that SKIET will see a reduction in interest expenses as it is evaluated based on the parent company's credit rating, and costs will be cut through the integration of the separator business and organizational consolidation, resulting in an immediate improvement of 60 billion won in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) on a consolidated basis immediately after the merger.7 billion won, which is not significant.
" This means that while the company's core business capabilities are acknowledged, expectations have been lowered as there has been a lack of new developments in robotics and autonomous driving.
3 trillion won since the merger announcement, so the recent decline in the stock price is very excessive.
" ※ Separator: A thin film that blocks the anode and cathode inside a battery to prevent direct contact and fire, while allowing only ions that generate electricity to pass through.
As one of the four core materials for batteries, SKIET is the company that manufactures this separator.
※ Price Return Swap (PRS) This is a derivative contract in which a company transfers shares to an investor in exchange for funds; at the time of settlement, if the stock price is lower than the reference price, the company promises to pay the difference, and if it is higher, it promises to receive the profit back.
In effect, it has the effect of borrowing money using shares as collateral, so it is widely used as a means of fundraising for companies that find it difficult to issue corporate bonds.3 billion KRW to secure a production facility for 154-kilovolt (kV) ultra-high voltage transformers.The analysis suggests that mass production will begin in 2028, with additional annual revenue exceeding 200 billion won expected starting in 2029.Researcher Jang Nam-hyun stated, "The establishment of an ultra-high voltage transformer production line goes beyond a simple expansion of the product lineup and will lead to strengthened competitiveness in securing orders through integration with existing products," adding, "Now is the time to buy, utilizing the valuation discount that has occurred ahead of a full-scale growth phase." The explanation is that "package orders," which combine special transformers and ultra-high voltage transformers for existing renewable energy and data center customers, will become possible, leading to an increase in both the order volume per project and new customers.
The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul.
Researcher Jang projected that "the growth speed of orders and profits will accelerate further," and that "new orders will increase due to the expansion of the customer base and diversification of the product portfolio.
The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul.4 times), noting, "Ahead of a full-scale growth phase." "It is time to step in and buy by taking advantage of the valuation discount that has occurred," he emphasized.※ Ultra-high Voltage Transformer This is a large transformer that significantly raises the voltage to send electricity generated at power plants over long distances, or lowers the voltage of electricity received from the transmission grid to make it suitable for use.
" This means that while the company's core business capabilities are acknowledged, expectations have been lowered as there has been a lack of new developments in robotics and autonomous driving.
It also serves as a gateway connecting power from large-scale renewable energy power plants to the transmission grid and receiving power from data centers that consume large amounts of electricity.
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The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul.
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The photo shows the Hyundai Motor & Kia Yangjae headquarters in Seocho-gu, Seoul.[email protected] Seong Min-seo Reporter