Hyundai Glovis (086280.KS): Slight miss in 2Q, yet less of a concern; Upgrade to Buy

Research evidence excerpt

Hyundai Glovis (086280.KS): Slight miss in 2Q, yet less of a concern; Upgrade to Buy

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23 Jul 2026 10:30:51 ET │ 15 pages

Hyundai Glovis (086280.KS)

Slight miss in 2Q, yet less of a concern; Upgrade to Buy

CITI'S TAKE

We upgrade Hyundai Glovis (Glovis) to Buy, given: 1) improving earnings

momentum in 2H26; 2) likelihood of Glovis delivering (or slightly surpassing)

2026 guidance; and 3) decent dividend yield. After fine-tuning FY26-28 NP Buy ↑ from Neutral

estimates by 2% or less, we maintain our 12-m TP of W256,000. Short-Term View: Upside

Price (23 Jul 26 15:45) W204,500

2Q miss, yet less of a concern — Glovis reported W8.7tr revenue (+16% y/y) and

W495bn OP (-8% y/y) in 2Q, OP coming in at 4% below consensus. That said, 2Q OP Target price W256,000

miss was mostly due to a time lag in recouping higher oil price from PCTC clients Expected share price

25.2%(which was around W60bn OP headwind in 2Q) where Glovis typically recoups return

higher oil price from PCTC clients with around 2-3 month time lag.

Expected dividend yield 3.1%

Constructive comments on 2H outlook — Glovis provided constructive comments Expected total return 28.3%

on 2H outlook, including; 1) recent SCFI strength leading to positive tailwinds on its Market Cap W15,337,500Moverseas logistic biz in 2H; 2) tailwind on domestic logistic biz stemming from

scheduled new model launches by Korean auto OEMs in 2H; 3) strong PCTC demand US$10,381M

from exports of Chinese local auto OEMs leading to increasing non-captive PCTC

revenue contribution (which carries better profitability vs. PCTC biz from captive

clients); and 4) continuous benefit from PCTC fleet optimization.

Price Performance

2026 guidance maintained — Despite soft 2Q print at a glance, Glovis sees its 2026