Hanwha Investment Securities maintained its Buy rating on Kia (KRX: 000270) on the 18th, raising its target price from 245,000 won to 290,000 won — an upward adjustment of 45,000 won. Based on the current share price of 166,300 won, the implied upside stands at 74.4%.
The brokerage revised its target price upwards by incorporating a KOSPI valuation premium of 30% — a re-rating applied to shares listed on Korea's main stock index — alongside a finished-vehicle share beta of 0.93 into its existing valuation framework.
Sales and Near-Term Earnings Outlook
Second-quarter vehicle sales are forecast at 828,000 units, representing year-on-year growth of +1.7%, with the pace of expansion expected to broaden. Sales of eco-friendly vehicles (xEV) are projected to rise by over 40% year-on-year. However, rising raw-material costs and a 20% increase in annual R&D investment — which lifts capitalised development expenses — are expected to weigh on profitability, with the second-quarter operating profit margin (OPM) forecast to decline by 0.6 percentage points year-on-year.
Full-Year 2026 Forecasts
Metric | 2026 Forecast | Year-on-Year Change
Revenue | 125.388 trillion won | +9.9%
Operating profit | 10.241 trillion won | +12.8%
Earnings growth is expected to accelerate in the second half of the year, driven by expanded volumes of the Telluride, the start of mass production of the Sportage HEV, and a broader rollout of affordable electric vehicles in Europe.
Robotics Business: An Emerging Catalyst
The robotics business is also drawing attention as a key investment theme. The commissioning of the RMAC (Robot Manufacturing Automation Centre) in August is set to formally launch the mass-production development process for humanoid robots. Analysts also raised the possibility of Kia acquiring additional equity in Boston Dynamics (BD) in conjunction with a potential initial public offering (IPO) of the company. Boston Dynamics' stake value has been assessed at 63,465 won per Kia share.