] HMC Investment Securities on Oct. 11 projected Hyundai Motor
’s third quarter earnings will be far below the market consensus.
The brokerage, an affiliate of Hyundai Motor Group, forecast South Korea’s largest automaker will post 22.17 trillion won (US$19.80 billion) in sales and 1.12 trillion won in operating profit, down 6.0 percent and 25.3 percent on-year, respectively.
HMC’s estimate is far lower than a previous market consensus of 1.47 trillion won in operating profit.
“Hyundai will post the lowest sales figure since the third quarter in 2009, hit by decline in domestic sales, strong won-dollar exchange rate and ongoing strike,” said Lee Myung-hoon, an analyst at HMC Investment Securities.
“But once the wage deal is completed, the local plants will recoup capacity utilization,” Lee said.
Citing decent overseas sales and inventory situation, the securities firm maintained a “buy” recommendation and a target price of 200,000 won.
By Ahn Sung-mi (email@example.com