Hanwha Securities Maintains 'Buy' on Hyundai Glovis Amid Earnings Growth

Hanwha Investment & Securities has maintained a 'Buy' rating on Hyundai Glovis, forecasting significant earnings growth driven by robust performance in shipping and overseas logistics.

Analyst Kim Seong-rae noted that Hyundai Glovis is expected to achieve a revenue of 34.6 trillion won this year, reflecting double-digit growth across all sectors. The operating profit is anticipated to reach 2.168 trillion won, bolstered by improved profitability in overseas logistics and pure car and truck carriers (PCTCs).

The report highlights strong growth in overseas logistics, supported by favorable container market conditions and increasing transport volumes in North America. Additionally, PCTCs are projected to see a 22.2% year-over-year revenue increase due to rising demand for Chinese finished-car exports.

Despite rising oil prices impacting costs, Hanwha expects these to be offset by fuel surcharges. The demand for PCTCs from China is anticipated to remain strong into next year, further enhancing revenue growth and profitability for Hyundai Glovis. As of the third quarter, China's passenger-car export volume surged by 80.4% compared to the previous year, indicating a robust market.

Kim emphasized that Hyundai Glovis is uniquely positioned to benefit from macroeconomic factors, such as recovering fuel costs and rising container rates, which enhances its investment appeal.