Shinhan Investment Corp. forecasted that the impact of tariffs on Hyundai Motor will intensify starting in the second quarter (April to June). Accordingly, while maintaining a buy recommendation, it lowered the target stock price from 290,000 won to 270,000 won. The previous day's closing price for Hyundai Motor was 187,000 won.
Park Kwang-rae, a researcher at Shinhan Investment Corp., noted, "The concerns regarding the imposition of tariffs on imported cars in the United States have materialized," adding, "A 25% tariff has been applied to imported cars, and there is also a possibility that separate tariffs will be applied to key components."
He added, "Since competitors are currently showing restraint in raising prices, it is expected that the tariff burden in the short term will be carried by the original equipment manufacturer (OEM) companies."
Researcher Park analyzed, "The prices of new vehicles for the Hyundai Motor brand and Genesis in the United States stand at $37,000 and $65,000, respectively. Last year, approximately 550,000 units of Hyundai Motor and about 50,000 units of Genesis were exported from Korea to the U.S., leading to a potential annual tariff expense of up to 8.8 trillion won."
However, in the short term, share buybacks and high dividends are expected to defend against downward pressure on stock prices. Researcher Park mentioned, "I anticipate the price support from the expected dividend yield in the 7% range and the share buybacks and retirements within the first half of the year."
There are also expectations for new business ventures. Researcher Park explained, "The internalization of robotics centered on Boston Dynamics, collaboration with GM and Waymo, and the transition to software-defined vehicles (SDV) are strengthening the foundation for reevaluating stock prices through new business efforts."