According to its own statements, South Korea’s industry leader worldwide was only able to Sell 903,000 cars. In the same quarter of the previous year it was more than one million. That Hyundai was able to increase its sales by 5.6% to 25.3 billion won despite the decline in sales thanks to an improved product mix and favorable currency effects was a minor matter on the stock exchange – just like that News that the carmaker has started slowly ramping up vehicle production in Europe.
The share (EUR 21.20; 885166; USY384721251) lost almost 10% in the past two weeks. The recovery rally that has been going on since March, which pushed paper upwards from 14 euros to temporarily more than 24 euros, was stalled. The outlook also caused long faces: Due to the corona crisis and further uncertainties, the Koreans expect weakening profitability in the second quarter as well. An upturn is not expected until the second half of the year. Overall, however, according to investor relations chief Koo Za-yong, demand should decrease significantly in 2020. In addition, Hyundai assumes that China – where the corona virus has now largely been contained – will only recover slowly from the consequences of the pandemic. An investment in the shares of the world’s fifth largest car maker at the moment therefore requires a certain amount of courage despite attractive fundamentals (2021 P / E ratio: 5.4; 2021 dividend yield: 4.8%) – also with a view to short-term charting. We believe there are even cheaper entry-level opportunities.
Put Hyundai on the watchlist for now.
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