At a recent media conference held during the ACT 2024 Expo in Las Vegas, Hyundai Motor Company outlined the current state of its North American logistics transportation operations. The company announced plans to expand its hydrogen commercial value chain, emphasizing a commitment to clean logistics transportation. The ACT Expo, a prominent event for clean transportation, served as the platform for Hyundai to detail its strategic initiatives aimed at enhancing sustainable practices within the industry. (Image: Hyundai Motor Company)
SEOUL, May 23 (Korea Bizwire) – Hyundai Motor Company’s shares surged 9% on May 22 as the automaker showcased its ambitions in hydrogen-powered vehicles and clean transportation systems at an industry expo in Las Vegas.
The company’s stock closed at 277,000 won, rising 24,000 won or 9.49% from the previous day’s close. In late trading, Hyundai’s shares briefly touched 277,500 won, marking a new 52-week high, though falling short of its all-time intraday record of 289,000 won set on January 11, 2021. On a closing basis, however, May 22’s finish established a new all-time-high since Hyundai’s listing in 1974.
Hyundai’s surging stock boosted its market capitalization to 58 trillion won, allowing it to leapfrog Samsung Biologics and claim the fourth spot among companies listed on Korea’s main KOSPI bourse. Samsung Electronics remains the market leader, trailed by SK Hynix and LG Energy Solution.
The carmaker’s upbeat performance was fueled by its unveiling of an enhanced concept model of the Xcient hydrogen fuel cell electric truck and an upgraded hydrogen fuel cell system at the clean transportation expo. Hyundai outlined plans to expand its hydrogen commercial value chain, focused on clean logistics and freight transportation.
“The broader KOSPI index, which had been declining during the morning session, reversed course in the afternoon,” said Lee Kyung-min, an analyst at Daishin Securities. “The rally was led by SK Hynix on expectations of strong earnings from Nvidia, as well as Hyundai and Kia on the hydrogen vehicle theme.”
Hyundai’s stock surge also reflected optimism surrounding its potential second-quarter earnings momentum and anticipated shareholder returns. “With Santa Fe and Palisade production rapidly increasing in the U.S. and Korea, respectively, the robust earnings momentum could propel Hyundai’s stock to a new level in the second quarter,” said Yoo Jiwoong, an analyst at Daol Investment & Securities.
Lee Byung-gun from eBest Investment & Securities noted the possibility of additional shareholder return policies in the second quarter, adding, “Hyundai is expected to gradually raise its shareholder return ratio to 40% over the long term.”
This photo provided by Hyundai Motor Group shows the group’s headquarters in southern Seoul. (Image courtesy of Yonhap)
Other hydrogen value chain stocks also rallied, with Kia climbing 3.93% to 118,900 won. Doosan Fuel Cell jumped nearly 22.25%, while Lotte Chemical advanced 2.64%. On the junior KOSDAQ market, Bumhan Fuel Cell, S-Fuelcell, and S-Energy all posted significant gains.
The broad rally in hydrogen-related shares came as the U.S., China, and Europe engaged in an escalating trade conflict over vehicle exports and tariffs, from which Hyundai could potentially benefit due to its limited exposure to the Chinese market and rising local production footprint in the U.S. and Europe.
Kevin Lee (kevinlee@koreabizwire.com)
