2Q26 OP misses on BEV mix drag 2H26F volume acceleration and HEV mix to drive recovery

研报英文原文证据摘录

2Q26 OP misses on BEV mix drag 2H26F volume acceleration and HEV mix to drive recovery

Global Markets Research

Kia Corp 000270.KS 000270 KS 24 July 2026

EQUITY: AUTOS & AUTO PARTS

Rating2Q26 OP misses on BEV mix drag Remains Buy

Target price2H26F volume acceleration and HEV mix to drive Remains KRW 250,000

recovery

Closing price KRW 130,500 24 July 2026Action: Maintain Buy and TP of KRW250,000

We maintain our Buy rating and TP of KRW250,000. While 2Q26 OP missed our and Implied upside +91.6%Bloomberg consensus estimates by 7-8%, Kia’s OPM of 8.0% remains top-tier among

mass-market global OEMs. Kia has outperformed broader market trends with sales up Market Cap (USD mn) 34,734.5

+5% y-y in 1H26 against global demand contraction (-5.5% y-y), and management ADT (USD mn) 149.9

expects 2H26E sales to accelerate to +10% y-y, driven by key launches including the new

Telluride, Seltos, and EV2. Factoring in rising global incentives and price/mix pressure,

we forecast 2026F OP at KRW9.5tn (vs the company guidance of KRW10.2tn and Relative performance chart

consensus estimate of KRW10.4tn). Nevertheless, Kia’s shares trade at just 6x average

2026-27F EPS, which we believe is an attractive entry point given its strong operational

execution and long-term robotics/SDV upside. A key downside risk to our TP is potential

KRW appreciation.

2Q26 review: OP missed consensus by 7% on rising BEV mix and higher incentives

2Q26 revenue grew 13% y-y, in line with consensus, driven by strong xEV volume (+60%

y-y) and FX tailwind. However, OP came in at KRW2.63tn (-5% y-y, OPM: 8.0%), missing

consensus by 7%. Main negative drivers to OP included higher incentive/pricing pressure

(-KRW723bn), increased warranty costs (-KRW372bn), and product mix deterioration (-