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MODEL PORTFOLIO THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
investment-ss-3
Reports
Policy rate views: Fed expected to do baby steps
September 18, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Inflation Update: Faster but full-year average within target
September 5, 2025 DOWNLOAD
948 x 535 px AdobeStock_433552847
Reports
Monthly Economic Update: Waiting on Jay Powell
September 2, 2025 DOWNLOAD
View all Reports
Bonds Market Movements Top Picks Issuer List
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  • Hyundai Motor
Corporate Bonds

Hyundai Motor

  • Sector: Manufacturing
  • Sub Sector: Automotive
  • Country: Korea
  • Bond: HYNMTR 5.4 31
  • Indicative Yield-to-Maturity (YTM): 4.53%
  • Credit Rating : A3 / A- / A-
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Fundamental View

AS OF 21 Aug 2025

  • While the profit headwind related to tariffs could become a rating event over time, we expect the rating agencies to maintain their patient stance on Hyundai based on its solid market position and healthy pre-tariff profit margins, giving the company time to implement and execute tariff mitigation strategies before contemplating negative rating actions. We note that Hyundai’s biggest mitigation strategy involving the ramp of its US-based Metaplant is already underway and should reduce its reliance on vehicle imports for the US market from 60% to 30% over time.

Business Description

AS OF 21 Aug 2025
  • Hyundai Motor Co., Ltd. engages in the manufacture and distribution of motor vehicles and parts. It operates through the following business areas: Vehicle, Financial and Other. The Vehicle division offers motor vehicles. The Financial division provides financing, leasing and credit cards. The Other division includes manufacture of railways. The company was founded on December 29, 1967, and is headquartered in Seoul, South Korea.
  • Hyundai Capital America benefits from a support agreement with Hyundai Motor (HMC). HCA investor relations confirmed its support (keepwell) agreement contains a fixed charge coverage provision that it views as particularly strong compared to other peers.

Risk & Catalysts

AS OF 21 Aug 2025
  • On a combined basis, HMG’s current FY25 guidance targets FY25 wholesale unit growth of 2% to 7.4 mn units, revenue growth of 5% to 6%, and a consolidated operating profit margin of 8.8% at the midpoint of the range for YoY margin contraction of 40 bp. Kia management expects 2H25 vehicle demand in the US to decline 10% YoY, which will likely lead to a reduction in HMG’s FY25 wholesale unit target. Hyundai management stated it expects a bigger tariff impact in 3Q25 and 4Q25 than 2Q25, which we believe is likely due to a combination of vehicle tariffs being in effect for the entire quarter instead of just two months in 2Q25, along with lower volumes.

  • HMG targets continued growth of NEVs in 2H25, including a target of 100% growth in HEV sales. Given the end of the US $7,500 NEV consumer tax incentive at the end of 3Q25 and expected reduced emissions standards in the US, the company plans to leverage its flexible production system for ICE and NEVs to adapt to potential demand changes. Management previously noted its Metaplant in Georgia, which was originally designed to manufacture EVs, was being retooled to also produce HEVs and could potentially produce ICE vehicles in the future.

Key Metric

AS OF 21 Aug 2025
KRW bn FY21 FY22 FY23 FY24 LTM 2Q25
Revenue 94,143 113,718 130,150 136,725 141,518
EBIT 5,459 8,950 15,440 14,189 12,233
EBIT Margin 5.8% 7.9% 11.9% 10.4% 8.5%
EBITDA 10,015 13,998 20,387 18,476 15,331
EBITDA Margin 10.6% 12.3% 15.7% 13.5% 8.5%
Total Liquidity 19,745 26,639 26,507 27,488 22,776
Net Debt (5,202) (11,035) (10,916) (11,799) (17,730)
Total Debt 12,569 12,940 12,940 12,940 5,805
Gross Leverage 1.3x 0.9x 0.6x 0.7x 0.4x
Net Leverage -0.5x -0.8x -0.5x -0.6x -1.0x
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CreditSight View Comment

AS OF 22 Sep 2025

We reiterate our Outperform recommendation on HMG notes based on relative value, the company’s solid global market position, and our view its low-A credit rating should be secure in the near term based on its solid global market position, its growing new energy vehicle business, tariff mitigation initiative including vehicle onshoring in the US, and potential near-term tariff rate relief.

Recommendation Reviewed: September 22, 2025

Recommendation Changed: April 28, 2025

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Hyundai Motor

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