Hyundai HCN to gain momentum

Hyundai HCN to gain momentum

Hyundai HCN’s profits have improved, said Korea Investment and Securities on Nov. 19 upgrading it to a buy” from “hold” and suggesting 5,600 won (US$4.97) target price.

It is undervalued and its enterprise value divided by EBITDA is at the lowest level. Its cash flow is solid with 360.9 billion won reserves as of end-September, and will continue to rise. EV/EBIDTA, accordingly, will decline to 1.1 times next year and 0.6 times in 2020, said analyst Yang Jong-in.
Revenue will turn around and marketing costs will decline. Its operating profit next year will rise 7.1 percent on-year. Growing cash reserves will boost its bottom line and net profit in 2019 will increase 9.9 percent from this year, added the analyst.

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