Hanwha Investment Securities reiterated its "Buy" recommendation on Kia (KRX: 000270) on July 6th, keeping its target price at 290,000 won — implying upside of 90.8% from the stock's closing price of 152,000 won on July 3rd.
The brokerage said Kia's second-quarter vehicle sales reached approximately 850,000 units on a preliminary basis, exceeding its prior forecast by 22,000 units. Sales of electrified vehicles (xEV) totalled 271,000 units, up 46.6% year on year, with battery electric vehicles (BEV) surging 86.8% to 110,000 units.
Hanwha projects second-quarter revenue of 33.2 trillion won, a 13.1% increase, driven by favourable currency effects, higher volumes, and a product mix increasingly skewed towards electrified models. Operating profit is expected to reach 2.9 trillion won, up 4.9% — marking the company's first earnings growth in six quarters. The operating margin is forecast at 8.7%, a decline of 0.7 percentage points from a year earlier.
By region, North American sales dipped 1.2% year on year, but this was offset by strong performances in Europe (+9.9%) and India (+19.1%). In Europe, Kia's Slovak plant produced 12,000 units of the EV2 during the quarter, signalling a firm foothold in the local market.
Looking to the second half of the year, Hanwha anticipates continued profit growth as the impact of US tariffs eases and new model launches gain momentum. Key drivers are expected to include expanded hybrid (HEV) sales of the Telluride in North America and the start of mass production of the Sportage HEV at Hyundai Motor Group's Georgia plant (HMGMA).
In robotics, Hanwha expects Kia to acquire additional equity in Boston Dynamics and to establish a local robot manufacturing subsidiary in the second half of the year. The company's planned deployment of Boston Dynamics' Atlas robot at its Georgia plant in 2029, along with broader development participation, was cited as a potential catalyst for a revaluation of Kia's longer-term worth.
For the full year, Hanwha forecasts Kia's revenue at 126.97 trillion won and operating profit at 10.57 trillion won, representing year-on-year growth of 11.2% and 16.5% respectively.