[EQUITIES] Kia Motors’ Q3 operating profit to slump 33%: analyst
By 안성미Published : Oct. 12, 2016 - 18:00
[THE INVESTOR] HMC Investment and Securities on Oct. 12 predicted Kia Motors will post third-quarter operating profit of 5.16 trillion won (US$4.59 billion), down 33 percent on-year.
The brokerage, an affiliate of Hyundai Motor Group, estimated Kia’s sales to drop 13 percent on-year to 12.56 trillion won (US$11.17 billion).
The operating profit stands far below the market consensus of 6.37 trillion won.
![](//res.heraldm.com/content/image/2016/10/12/20161012001354_0.jpg)
“The decline is due to the termination of the tax cut on new car purchases that reduced domestic sales, unfavorable won-dollar exchange rate and ongoing strike,” Lee Myung-hoon, analyst at HMC Investment Securities said.
Lee forecast Kia Motor will recoup from the loss in the fourth quarter to post a combined 2.48 trillion won in operating profit for 2016.
The brokerage maintained a “buy” recommendation and a target price of 63,000 won, citing the popularity of SUVs and increasing production at Kia’s auto plant in Mexico.
By Ahn Sung-mi (sahn@heraldcorp.com)
The brokerage, an affiliate of Hyundai Motor Group, estimated Kia’s sales to drop 13 percent on-year to 12.56 trillion won (US$11.17 billion).
The operating profit stands far below the market consensus of 6.37 trillion won.
![](http://res.heraldm.com/content/image/2016/10/12/20161012001354_0.jpg)
“The decline is due to the termination of the tax cut on new car purchases that reduced domestic sales, unfavorable won-dollar exchange rate and ongoing strike,” Lee Myung-hoon, analyst at HMC Investment Securities said.
Lee forecast Kia Motor will recoup from the loss in the fourth quarter to post a combined 2.48 trillion won in operating profit for 2016.
The brokerage maintained a “buy” recommendation and a target price of 63,000 won, citing the popularity of SUVs and increasing production at Kia’s auto plant in Mexico.
By Ahn Sung-mi (sahn@heraldcorp.com)