Samsung Securities has reaffirmed its existing buy rating for Kia Motors, forecasting that the company's second-quarter management results will show a clear recovery trend, as announced on the 27th. Simultaneously, it set a stock price target of 2.3 million won, indicating potential for future stock appreciation. This positive assessment is not based on blind optimism but rather on stable operations evidenced by the company's first-quarter results, which deviated little from market expectations. On the 24th, Kia announced that its consolidated revenue for the first quarter of 2026 reached 2.9519 trillion won, representing a 5.3% year-over-year growth. However, operating profit declined by 26.7% to 2.251 billion won, showing some slowdown in profitability. Nevertheless, the dominant analysis is that sales growth continues and overall performance figures generally align with the consensus among securities firms.
Samsung Securities researchers Lee Eun-young and Kim Hyun-ji highlighted that while global automotive market demand decreased by 7.2% year-over-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 an important indicator of the market's actual absorption capacity, surpassing mere factory shipment figures. Despite a general downturn in global automotive demand, Kia's ability to increase sales is interpreted as a strong signal of the brand's competitiveness and robust product lineup composition. This serves as proof that Kia is maintaining its own survival strategy even amidst global economic uncertainty.
Securities firms particularly expect the effects of new model launches to fully manifest by the second quarter, region by region. In the Korean market, where sales momentum continues, the U.S. market saw the Telluride launch last month followed by the Seltos model this month, with Sparty hybrid production imminent. In Europe, the electric vehicle EV2 made its market debut at the end of last month. Given the nature of the automotive industry, new model launch effects serve as a powerful driver to simultaneously boost unit prices and sales volumes. Therefore, the ongoing introduction of new models in key markets is becoming a core background for heightened expectations of performance improvement. This multifaceted new car strategy is laying the foundation for flexible responses to regional market conditions.
Samsung Securities expects Kia's second-quarter revenue to reach 3.21 trillion won and operating profit to hit 2.95 trillion won. This exceeds both the market consensus of 3.16 trillion won in revenue and 2.75 trillion won in operating profit, suggesting growth that surpasses analysts' expectations. The research team judged that among the three companies in the Hyundai Motor Group, Kia is most likely to recover its performance momentum first. This positive trend is evaluated as likely to continue through the second half of the year if new car competitiveness and regional sales strategies are effectively maintained despite external shocks such as global demand slowdown. Ultimately, the conclusion is drawn that Kia's future performance depends on the success of new models and the execution of regional strategies.