Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Hyundai- HyundaiMotor (005380.KS)Motor (005380.KS)

Staying Positive; OW

PRICE TARGET W520,000 OVERWEIGHT THESIS

operational outlook: We expect itsSOTP: ▪Positive

HMC Core business: We apply a target P/E multiple of 10x to our 2027 EPS, which is auto business to normalize in 2026-27 while

slightly below +1SD above historical average since 2015. We expect normalization of remain constructive on its mid- to long-term

operations and earnings/margins to support a further re-rating of its shares. opportunities in robotics/humanoids and

HMC India: 70% holdco discount to market value using LG Chem/LG Energy Solution as a hopeful on its autonomous driving/robotaxi

reference given the similarity in ownership. business outlook.

HMC appears to be W706,280 ▪Long-term optionality:

uniquely positioned to capture potential

Consensus Price Target Distribution W463,129.00 W900,000.00 growth opportunities in the MS PT

humanoid/robotics market given itsSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates

ownership of Boston Dynamics.

▪Staying Positive: With HMC being at the

forefront of physical AI narrative in Korea,

RISK REWARD CHART we expect positive sentiment to support its

shares.

KRW

Consensus Rating Distribution

W730,000W730,000(+82.04%)W730,000(+82.04%)(+82.04%)

800000 81% Overweight

19% Equal-weight

0% Underweight

600000 MS Rating

W520,000W520,000(+29.68%)W520,000(+29.68%)(+29.68%)

Source: Refinitiv, Morgan Stanley Research

400000 W401,000W401,000W401,000

Risk Reward Themes

200000 W300,000W300,000(-25.19%)W300,000(-25.19%)(-25.19%) Electric Vehicles: Positive

Self-help: Positive

View descriptions of Risk Rewards Themes here

JUL '25 JAN '26 JUL '26 JUL '27