Hyundai Motor stocks face divergent Q2 2026 analyst outlooks as the automaker approaches quarterly revenue of KRW 50 trillion. According to financial data provider FnGuide, the Q2 revenue consensus stands at KRW 49.0521 trillion, up 1.6% year-over-year, while operating profit consensus is KRW 3.1377 trillion, down 12.9% from the prior year. Kiwoom Securities lowered its target price from KRW 750,000 to KRW 700,000 citing difficulty confirming full-year profit growth, while DS Investment & Securities raised its target from KRW 740,000 to KRW 840,000 based on robotics business revaluation. The profit decline stems from production disruptions following the Daejeon Anjeongongup factory fire, rising raw material costs from the US-Iran conflict, and tariff burdens. If Hyundai Motor exceeds KRW 50 trillion in quarterly revenue, it would become the first non-semiconductor company in South Korea to reach this threshold, following Samsung Electronics and SK Hynix.
Only two companies in South Korea have surpassed KRW 50 trillion in quarterly revenue: Samsung Electronics and SK Hynix. The automotive industry lacks the pronounced cyclicality of semiconductors, making this achievement more significant according to market observers. Hyundai Motor's quarterly revenue grew from KRW 40 trillion in Q2 2023 to the current consensus level, representing a KRW 10 trillion increase over three years.
Kiwoom Securities Lowers Target Price to KRW 700,000 Citing Profit Uncertainty
Kiwoom Securities analyst Shin Yun-chul maintained a 'buy' rating but reduced the target price from KRW 750,000 to KRW 700,000. Shin stated, "Due to accumulated profit shocks in the first half, it is difficult to confirm the possibility of Hyundai Motor's profit increase this year."
Kiwoom Securities projected Q2 revenue at KRW 47.2 trillion and operating profit at KRW 2.83 trillion. Domestic sales volume was estimated at 158,000 units, down 16.4% year-over-year. Shin attributed the domestic sales decline to production disruptions of major SUVs including Santa Fe due to the Anjeongongup fire. Production disruptions at Hyundai Mobis' India factory affecting the Chennai 1 plant have normalized, but consecutive supplier fires created additional burdens.
Exchange rate movements also negatively impacted results. The won-dollar exchange rate reached 1,549 won and the won-euro rate hit 1,767 won at the end of Q2, up 30 won and 18 won respectively from the previous quarter. Shin estimated that foreign exchange-related warranty liability revaluations added KRW 100-150 billion in selling and administrative expenses for Q2, with cumulative first-half costs reaching KRW 400 billion.
Shin identified foreign investor outflows as another factor weighing on the stock price. Foreign ownership dropped from 35% in January to below 25% currently. He stated, "Foreign investors are no longer accepting the stock price appreciation story triggered by physical AI at the beginning of the year, deteriorating upside potential. To bring foreign investors back, the company must restore core business competitiveness and raise EPS expectations."
DS Investment & Securities Raises Target Price to KRW 840,000 on Robotics Revaluation
DS Investment & Securities analyst Choi Tae-yong maintained a 'buy' rating and raised the target price from KRW 740,000 to KRW 840,000. Choi stated that the investment focus is rapidly shifting from automotive performance to robotics, with growing potential for revaluation as a robotics platform company based on field data rather than just a finished vehicle manufacturer.
Despite short-term results falling below expectations due to production disruptions, Choi projected volume recovery and cost improvements starting in the second half, with robotics business value emerging as a new valuation factor. He highlighted Hyundai Motor Group's establishment of a "data flywheel" through the Robot Meta Plant Application Center (RMAC), accumulating vast industrial field data. The physical data secured from manufacturing sites represents a core asset for Robot Foundation Model (RFM) competitiveness and an entry barrier difficult for other robot companies to replicate.
Choi stated, "The key to stock price appreciation is ultimately robotics. Beyond RMAC initiating full-scale data flywheel operations and business sophistication, being one of the few robotics operators capable of securing vast field data is an attractive point." He also viewed collaboration with Google positively, noting that acquiring first-person video data through Google smart glasses could enhance robot AI learning competitiveness, giving Hyundai Motor an edge over Chinese robot companies and triggering corporate value revaluation.
Choi projected FY2026 revenue at KRW 193.7 trillion and operating profit at KRW 11.9 trillion, representing increases of 4% and 3.7% respectively from the prior year. He stated, "The core factors maintaining estimates for the second half of this year are continued favorable exchange rate environment, recovery from volume disruptions, and downward reflection of raw material prices."
FAQ
What is Hyundai Motor's Q2 2026 revenue consensus?
According to FnGuide, Hyundai Motor's Q2 2026 revenue consensus is KRW 49.0521 trillion, up 1.6% year-over-year. The operating profit consensus is KRW 3.1377 trillion, down 12.9% from the prior year.
Why did Kiwoom Securities and DS Investment & Securities set different target prices for Hyundai Motor stocks?
Kiwoom Securities lowered its target price from KRW 750,000 to KRW 700,000 due to uncertainty about full-year profit growth stemming from first-half profit shocks and foreign investor outflows. DS Investment & Securities raised its target price from KRW 740,000 to KRW 840,000 based on robotics business revaluation potential and the company's data flywheel capabilities through RMAC.
What factors caused Hyundai Motor's Q2 2026 operating profit to decline?
The Q2 operating profit decline resulted from production disruptions following the Daejeon Anjeongongup factory fire affecting Santa Fe and other SUV production, rising raw material costs from the US-Iran conflict, tariff burdens, and foreign exchange-related warranty liability revaluations totaling an estimated KRW 100-150 billion for the quarter.
