The shares of Hyundai Motor Co., the largest automaker in South Korea, are likely to increase. When compared to its 52-week low of 162,000 won ($133.77) on March 15, the stock increased by 11.73%, rising 2.55% to 181,000 won ($149.46) on March 30.
In the ten trading days leading up to March 29, foreigners took the lead in the recovery, purchasing shares worth a net 31 billion won. On the other side, over the same time period, individuals and institutions sold a net amount of shares of 25.7 billion won and 3 billion won, respectively. Between March 2 and March 15, foreign investors sold shares of the automaker worth more than 300 billion won.
Since the second half of 2021, Hyundai Motor’s market share has decreased as a result of worries about inflation, chip shortages, interest rate increases, and the Russia-Ukraine conflict. On June 24, 2021, the stock price reached a 52-week high of 249,000 won. On March 15, it fell by 35% to 162,000 won.
The stock appears to have captured the mood of the market and is about to recover. With the decline in the price of oil and hopes for peace talks between Russia and Ukraine, the worries have subsided. Additionally, the short-term performance of the automobile is anticipated to benefit from the weakening of the Korean won.
Even if industry observers predict a little improvement in the shortfall in the second half of this year, the chip shortage problem is still not showing any signs of improvement. Some market observers predict that the low supply problem would last beyond 2022. However, observers believe that the chip shortage issue has already been reflected in the auto stocks and won’t worsen any more.
The stock price is rising as a result of favorable valuation and market expectations for Hyundai Motor’s success. In response to the supply chain issue, the carmaker has enhanced its pricing strategy by raising the prices of finished cars and raising sales of premium car models.
“The average selling price (ASP) increase at Hyundai Motor will help the company’s performance in the first half of 2022. Additionally, a further decrease from the current level of the stock price will be limited, “the analyst at Hyundai Motor Securities Co., Chang Moon-su, stated.
With 7.5 times of the 12-month forward price-to-earnings ratio, the valuation has improved. With low interest rates a year ago, the forward P/E ratio, which typically ranges between 8 and 10, reached 10 to 11 times.
The long-term growth of the Hyundai Motor stock will determine its potential. Investors haven’t been drawn to the automaker’s plan for its future mobility operations, according to market observers. Only 26% of the company is owned by foreign investors, which is a proportion comparable to the global financial crisis of 2009.
By developing more than 17 EV lineups by 2030, Hyundai Motor is hastening the transition to electric vehicles. Additionally, it intends to increase profitability by adopting “smart factories,” which are automated production facilities run by information technology and digital data. The operating profit goal for Hyundai Motor is 8% by 2025 and 10% by 2030. “The automaker needs to draw up more specific goals,” said Kim Dong-ha, an analyst at Hanwha Investment & Securities Co. The automaker’s mid- to long-term growth plan is desirable.
As a further potential growth engine, the automaker is creating robots. Hyundai Motor is the first manufacturer of finished vehicles to commercialize industrial wearable robots, including the CEX (chairless exoskeleton), which provides sedentary assembly workers with knee support, and the VEX (vest exoskeleton), a follow-up exoskeleton with support for the neck and shoulders. Last month, the parent company Hyundai Motor Group acquired temporary operating licences from the government for 193 of its self-driving taxis. Robots for EV charging and customer service are two more categories that are being developed.
In This Article...
After automakers claim they are not in talks with Apple to produce a car, shares of Hyundai and Kia fell.
- Following media allegations that the maker of the iPhone was looking to the South Korean automakers to produce a self-driving car, both businesses stated in regulatory papers on Monday that they were not in discussions with Apple to develop a car.
- Although nothing has been determined yet because the conversations are in their early stages, Hyundai and Kia claimed they were receiving requests for cooperation to jointly create autonomous, electric vehicles from “many companies.”
Hyundai Motor and Kia Motors, two South Korean automakers, announced on Monday that they are not in discussions with Apple to create an autonomous vehicle.
On Monday, Kia Motors shares tumbled over 15% in South Korea, while Hyundai Motor shares sank 6.21%. Hyundai Wia, Hyundai Mobis, and Hyundai Glovis were other affiliates that experienced a steep decline.
“Hyundai Motor is not in discussions with Apple on the development of driverless vehicles,” it continued.
A similar submission was submitted by its subsidiary Kia Motors, which is South Korea’s second-largest automaker behind Hyundai.
Although nothing has been agreed, the business claimed it was looking at the possibility of working with “several companies worldwide” on autonomous electric vehicles.
Hyundai initially claimed last month that it was in preliminary discussions with Apple, but later changed its position and made no mention of the maker of the iPhone. Shares of Hyundai and its subsidiaries, including Kia Motors, experienced a spike as a result at the time.
Summary
- The Hyundai Santa Cruz is the most recent illustration of a brand-new, cutting-edge car model that supports Hyundai’s growing reputation among car purchasers for quality, affordability, and attractive design.
- Hyundai stock (HYMTF shares) trades infrequently over the counter as American Depositary Receipts, which is a sign of the low level of interest among American investors in a business that may gain from its expanding success.
- The automaker would gain from improving its reputation as an investor, increasing payouts, and increasing buybacks to support its long-term value proposition and growth narrative.
- Looking for additional suggestions for investments like this one? Purchase them only through Auto/Mobility Investors. Find out more A>>
A sector of the investing market that was formerly dominated by large, capital-hungry automakers whose fortunes fluctuated with economic cycles while providing investors with meager long-term returns has gained appeal because to electrification and the potential of autonomous driving technologies. Innovators like Ford Motor (F) and General Motors (GM) are being encouraged to speed their technological endeavors by Tesla (TSLA) and a wave of battery-electric vehicle (BEV) startups, making them more appealing to stock pickers.
The Korean chaebol Hyundai Motor Group (OTCPK:HYMTF), which owns the Kia and Genesis brands, has developed into a fierce global competitor by fervently committing to electrification with BEVs and hydrogen-powered fuel cell vehicles. It also has an ambitious focus on the newest safety and digital technologies (FCVs).
Primary Data
The automakers reportedly told the Korean news agency Yonhap that they are exploring partnering with international businesses to develop self-driving electric cars, but that no decision has been taken yet.
Following the announcement, shares of Kia plunged over 15% while those of Hyundai fell 6.2%.
Early in January, both stocks had increased after news broke that Apple was considering a partnership with Hyundai Motor Company to create a self-driving car, also known as an autonomous vehicle.
Eleven Hyundai executives sold their stock in the manufacturer hours before the announcement, according to a Bloomberg article using regulatory records and hours after the announcement.
However, the story points out that one executive actually sold his shares for less money than the closing price of Hyundai stock on Monday, and it is not obvious whether South Korean regulators will look into the matter.
ARTICLES
NEW DELHI: Furious over a tweet from the account of its Pakistani partner that expressed solidarity for the people of Kashmir, Indians called for a boycott of Hyundai Motor on Monday. The argument started on Sunday, the day after Pakistan observed the yearly Kashmir Solidarity Day, when tweets from Hyundai’s partner Nishat Group honoring the sacrifices made by Kashmiris fighting for self-determination appeared on Twitter, Facebook, and Instagram. Numerous Indians who use social media endorsed demands for a boycott, saying Hyundai needed to apologize for disregarding India’s position in the long-running conflict. As a form of retaliation against Hyundai, dozens of people announced that they intended to cancel their orders for the automaker’s models while advocating for domestic rivals like Tata Motors and Mahindra & Mahindra. Hyundai’s India division responded to the uproar by declaring that it has a “zero tolerance attitude towards insensitive communication and we firmly condemn any such view.” Hyundai India said in a statement that the “unsolicited social media post referencing Hyundai Motor India is hurting our unrivaled devotion and service to this great country.” It also stated that it firmly supports its “strong culture of respecting nationalism.”
Hyundai Motor India Ltd. has issued an official statement. https://t.co/dDsdFXbaOd
After reading the #HyundaiPakistan article, I booked a #Hyundai Verna a month ago, and it was scheduled to be delivered this month.
“Let’s declare them insolvent. One of the largest markets for automobiles is India “Ashoke Pandit, a social activist and filmmaker, posted a screenshot of a falling Hyundai stock price on Monday on Twitter.
Hyundai saw a share market decline. Let’s declare them insolvent. One of the largest markets is India. https://t.co/VaTKZ6eqRO
In spite of the fact that Hyundai’s stock declined 1.25% on Monday, declining more than Seoul’s benchmark index, the main causes of the decline were persistent concerns about a potential global chip shortage and the record number of Covid-19 cases in South Korea. The controversy over the social media post serves as a reminder of the dangers international businesses face as nationalism in the area is on the rise. In the past, Indian Twitter users have called for a boycott of Chinese goods in 2020 following a border dispute between the two Asian giants that disrupted supply chains in the car industry and other sectors. After it was discovered that its international website was selling merchandise featuring the faces of Hindu gods, Amazon also encountered social media outrage in India.
After a call for a boycott in India, the share prices of Hyundai Motor and Kia Corp fell today.
A massive brouhaha broke out in India as the posts gained popularity, with the people furious about what had happened. To make matters worse, Hyundai India started barring Indians who criticized the corporation for calling for Kashmir to be split from India and given to another country.
Even after two days had passed, Hyundai Pakistan’s Instagram page still had the photo up, and Hyundai India only offered a feeble apology. The firm continued to brag about how it was working for India’s advancement rather than accepting responsibility for its deeds.
Both Hyundai Motor and Kia Corp debuted to disappointing performances, with both company shares plummeting, failing to appease Indians with their shoddy approach and rotten school of thought. While Hyundai’s decline was over 3%, Kia’s share price fell over 2% on Monday as it continues to lose support in the second-most populous nation in the globe.
Why is the stock of Kia declining?
Hyundai continued, “Multiple firms have requested our cooperation in the collaborative development of driverless, electric vehicles, but nothing has been resolved as of yet.”
According to a Bloomberg report, Apple put a halt to discussions about developing an electric vehicle with Hyundai and Kia a few weeks ago.
While the likelihood of a deal with the two South Korean automakers is dwindling, many investors are still of the opinion that Apple should collaborate with a well-known automaker to enter the electric vehicle market.
According to a group of Wedbush technology analysts, many on the Street would prefer to see Apple partner on the EV path rather than start building its own vehicles or factories given the margin and financial model implications in the future as well as the strategic product risk associated with such a massive undertaking.
There is an 85% likelihood, according to a report published by Wedbush on Sunday, that Apple will announce an EV cooperation over the next three to six months. According to the company, Volkswagen might be Apple’s next greatest partner after Hyundai. According to Wedbush, VW’s Modular Electric Drive Matrix (MEB) would make it simple to integrate future self-driving models from companies like Apple.
Is Hyundai a reliable investment?
The average 12-month stock price projection for HYMTF stock is $58.31, which indicates a rise of 96.99%, according to 37 stock analysts. The lowest and greatest goals are $27.71 and $72.02, respectively. The majority of analysts recommend buying HYMTF stock.