Hyundai Motor, the leading South Korean automobile manufacturer, is reportedly expecting to see its 2022 operating profit reach up to ₩10 trillion ($7.7 billion) for the first time in its history, even after the numerous slumps it witnessed this year, including the comeback of COVID-19 and disruptions to the supply chain.
Securities firms had predicted an operating profit of approximately ₩8 trillion ($6.1 billion) for the firm but are now increasing their projections.
Despite a demand and supply shortage for automotive semiconductors, as well as growing concerns regarding the economic downturn in key markets like the United States and Europe, there is a widespread belief that a solid new vehicle demand will support earnings in the H2 of the year.
As per FnGuide, a financial information organization, Hyundai Motor's annual operating profit consensus anticipated by securities firms was ₩10,144.7 billion ($7 billion) as of Sunday.
This represents a 51.9% uptick over the previous year. Since the start of the year, Hyundai Motor's market consensus has been rising steadily. As the firm reported significantly improved performance in the Q2 of the year, the operating profit projection significantly increased in one month, from ₩8.5 trillion ($6 billion) to ₩10 trillion ($7.7 billion).
Meanwhile, luxury division, Kia's earnings are expected to set a new high this year, according to the company's forecast. Kia's annual operating profit is anticipated to rise 56.1% from the previous year to ₩7.9 trillion ($6.2 billion).
Given that the market forecast of ₩6.7 trillion ($5 billion) has increased by approximately 20% in just a month, some analysts predict an annual operating profit of ₩8 trillion ($6 billion). The two organizations' combined forecast operating profit is nearing an all-time jump of ₩18 trillion ($13 billion).
Hyundai Motor's sales in North America and Europe (wholesale basis) grew by 2.9% and 6.6%, respectively, in Q2 compared to the same period last year. EV sales are increasing, with sports utility vehicles (SUVs) accounting for over half of all sales.
There are concerns that the economic slump in key markets will deflate profit growth in the H2 of the year.