Samsung Securities has confirmed its existing "buy" rating for Kia Motors, citing an expectation that the company's second-quarter financial results will show a clear recovery trend, as of the 27th. Simultaneously, it set a stock price target of 230,000 won, signaling potential future stock appreciation. This positive assessment is not based on mere optimism but is grounded in the company's stable operations, which showed results in the first quarter that closely matched market expectations. Kia announced on the 24th that its consolidated revenue for the first quarter of 2026 reached 29.519 trillion won, a 5.3% increase year-on-year. However, operating profit declined by 26.7% to 22.51 billion won, indicating some slowdown in profitability. Despite this, the prevailing analysis suggests that revenue growth continues and overall performance largely aligns with the consensus forecast by the securities industry.
Samsung Securities researchers, Yoon Eun-young and Kim Hyun-ji, highlighted that despite a challenging environment with global automotive market demand declining 7.2% year-on-year in the first quarter, Kia's retail sales volume increased by 3.7%. Retail sales refer to units sold to end consumers and are considered a crucial indicator of actual market absorption capacity, surpassing mere factory shipment figures. The fact that Kia managed to increase sales volume despite a general weakness in global automotive demand is interpreted as a strong signal of the brand's competitiveness and a robust product lineup. This underscores that Kia is maintaining its own survival strategy even amid global economic uncertainty.
Securities firms particularly expect the effects of new model launches to fully materialize regionally starting from the second quarter. In the Korean market, strong sales momentum continues, while in the U.S., the Teluride model was launched last month, followed by the Seltos in this month, with the Sportage Hybrid production imminent. In Europe, the EV2 electric vehicle recently appeared in the market at the end of last month. Given the nature of the automotive industry, new model launches act as a powerful driver to simultaneously boost unit prices and sales volume. Therefore, the continuous introduction of new models in key markets is a core background boosting expectations for improved performance. This diversified new car strategy lays the foundation for flexibly responding to regional market conditions.
Samsung Securities expects Kia's second-quarter revenue to reach 321 billion won and operating profit to hit 295 billion won. These figures exceed the market consensus of 316 billion won in revenue and 275 billion won in operating profit, suggesting growth that surpasses analysts' expectations. The research team concluded that among the three Hyundai Group subsidiaries, Kia is most likely to recover its performance momentum first. They assessed that this positive trend is likely to persist through the second half of the year if new car competitiveness and regional sales strategies remain effective despite external shocks such as the slowdown in global demand. Ultimately, the conclusion is drawn that Kia's future performance hinges on the success of new models and the execution of regional strategies.