Short comment
Global stock markets are plunging, and in Korean market, earnings-shock of Hyundai Motors (005380.KS) has come up. Even though revised accounting standard makes comparison harder, operating income of the company during 3Q18 is a fifth of that during same time. There was a product recall, and the fundamental problems like decreasing competitiveness, union-problem or decreasing operating margin aren't solved at all. There is another bad news "rising US market yields would raise automobile-loan rate."
Global stock markets are plunging, and in Korean market, earnings-shock of Hyundai Motors (005380.KS) has come up. Even though revised accounting standard makes comparison harder, operating income of the company during 3Q18 is a fifth of that during same time. There was a product recall, and the fundamental problems like decreasing competitiveness, union-problem or decreasing operating margin aren't solved at all. There is another bad news "rising US market yields would raise automobile-loan rate."
The number of shares borrowed to make short-selling are now 5million. It was lower than 1million in May. The equity was limited for short-selling at this Friday. Actually, it's not just Hyundai to confront with hardship. Whole automobile sector is struggling to get out from the hardest situation. A few days ago, Renault (RNO.FP) also announced its performance during third quarter, and it didn't meet the market consensus. The company is worrying about future earnings with FX volatility, contracting real economy, American sanction against Iran and conflict between US and China.
The situation is worse for Hyundai. it's not just in EM but also in DM including US to go through decreasing sales. What's going to happen to shareprice? Fundamentally, there could be additional downside, but short-selling reserve is too big, so the downside would be limited.
I'm suggesting target of the shareprice to ₩95,000.
The situation is worse for Hyundai. it's not just in EM but also in DM including US to go through decreasing sales. What's going to happen to shareprice? Fundamentally, there could be additional downside, but short-selling reserve is too big, so the downside would be limited.
I'm suggesting target of the shareprice to ₩95,000.
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