Hyundai Motor has reported record-breaking quarterly performance, with operating profit exceeding 4 trillion won ($3.14 billion) for the second quarter of this year. Despite this achievement, the company's stock price on the KOSPI market remains stagnant. On July 26, Hyundai's stock closed at 198,700 won, down 0.90 percent from the previous trading day. The decline in stock price can be attributed to concerns about the peak-out phenomenon following the all-time high performance since the fourth quarter of the previous year. Brokerage firms predict that Hyundai's operating profit for the third quarter will decline compared to the previous quarter, leading to a downgrade in the company's rating.
Hyundai's IFRS consolidated revenue for the second quarter reached 42.2497 trillion won, a 17.4 percent increase compared to the same period last year. Operating profit also surged by 42.2 percent, totaling 4.2379 trillion won. The net profit, including minority interest, grew by 8.5 percent to 3.3468 trillion won. However, despite these impressive numbers, the company's stock price has not reflected the positive performance. The decline in stock price can be partly attributed to concerns about the peak-out phenomenon following the all-time high performance since the fourth quarter of the previous year. Analysts believe that Hyundai's status as a global automotive behemoth is undervalued, leaving room for further appreciation in its market valuation.
In contrast, POSCO Future M, a subsidiary of POSCO Holdings, has seen an increase in its market valuation. The company's TP has been raised to W560,000 on a change in valuation method, but its rating has been downgraded to Hold due to limited upside potential. The number of mid/long-term supply contracts has been increasing, leading to revised capacity and earnings forecasts for the firm. The DCF valuation method is believed to more accurately reflect changes in the company's business environment. Despite the downgrade in rating, POSCO Future M's market cap and TP are still higher than its competitors, indicating positive growth prospects for the company.
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