SEOUL, KOREA - Meritz Securities said on June 23 that Hyundai Motor's second-quarter financial performance would meet the market expectations, with its investment opinion and the target price on the stock maintained at "buy" and 330,000 won. The securities firm estimated that the car maker's second-quarter sales revenue would be 23.5 trillion won, up 1.3 percent from the same period a year ago.

 

As for the company's operating profit, the securities firm said it would be down 7.3 percent to 2.23 trillion won. Both of the figures are within the market consensus.

 

Kim Joon-seong, analyst with Meritz Securities, said, "The share of domestic sales for cars with higher average selling prices will rise by 3 percentage points from the same period last year. Its operating profit ratio for the finance business would be at a normal level." "Thanks to the allowance for foreign exchange losses, the company could minimize the loss from the stronger won," he added.

 

The analyst said that the launch of new car models in the U.S. market has been successful. "It has been two months since the DH Genesis has been launched. For all trims, the model is sold at a $500 premium. For the incentive program for the LF Sonata that has begun selling from this month, it is offered at the level of $1,700 or below, comparable to that for teh YF Sonata in the beginning stage of the sales."