KOSPITransport & Logistics086280

Hyundai Glovis

₩201,000▲ 1.31%2026-10-02 close

Market Cap

₩15.1T

Turnover

₩17.9B

Volume

90,000 shares

Shares out.

75M

PER

10.0×

PBR

1.4×

EPS

₩20,548

Dividend Yield

2.82%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩5,800 per share · Prices as of the 2026-10-02 close

Report overview

Record Revenue, Compressed Shipping Margin

Finished-vehicle ocean transport and knock-down parts pushed second-quarter 2026 revenue to a quarterly record, yet a fuel-cost spike hit shipping costs first, leaving the operating margin lower for a fifth straight quarter.

1
Second-quarter 2026 revenue set a quarterly record at KRW 8.71tn, but operating profit of KRW 495.1bn left the margin at 5.7%.
2
Annually, revenue grew from KRW 25.68tn in 2023 to KRW 29.57tn in 2025, with the operating margin rising from 6.1% to 7.0%.
3
Guidance for 2026 is revenue above KRW 31tn and operating profit above KRW 2.1tn; first-half operating profit reached KRW 1,016.5bn.
4
Surging Chinese vehicle exports and a shortage of car-carrier capacity underpin non-affiliate cargo growth; the target is a 128-ship fleet and 5m units a year by 2030.
5
The U.S. Trade Representative port fee on car carriers, fuel and currency swings, group governance and the Boston Dynamics stake all sit on the table at once.

Business structure

Hyundai Glovis is a Hyundai Motor Group integrated logistics company built on three pillars: logistics, shipping, and distribution (knock-down parts, used cars, trading).

In the second quarter of 2026 the logistics division posted revenue of KRW 2,855.8bn, up 10.3% year on year, while distribution posted KRW 4,205.5bn, close to half of group revenue (company conference call, July 23, 2026).

TheBell reported in June 2026 that complete-knock-down (CKD) parts account for roughly 40-50% of total revenue; supplying parts on time to overseas group plants is the company's original business.

The shipping division centers on pure car and truck carriers (PCTC) alongside bulk and gas vessels, and while it is the smallest of the three by revenue it carries the highest operating margin.

Reducing reliance on affiliates has been the key task of recent years, and the company said non-affiliate cargo reached about 53% of finished-vehicle ocean transport revenue in 2025.

Logistics spans domestic vehicle and parts transport, overseas forwarding and North American inland trucking, leaving it exposed to container freight rates.

Distribution includes the Autobell used-car auction brand, which passed 2m cumulative listings in June 2026 across four auction centers in Incheon, Bundang, Sihwa and Yangsan.

The competitive set is layered: Japanese and European carriers in car shipping, global forwarders in container logistics, and automakers' in-house teams in knock-down parts.

Ship-management affiliate G Marine Service internalizes operating capability, and the company directly holds an 11.25% stake in Boston Dynamics, giving it a link to smart logistics and robotics.

Earnings trend

Quarterly revenue · Operating profit

₩7.5T₩538.9B25Q2₩7.4T₩524B25Q3₩7.5T₩508.3B25Q4₩7.8T₩521.5B26Q1₩8.7T₩495.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩27T₩1.8T2022₩25.7T₩1.6T2023₩28.4T₩1.8T2024₩29.6T₩2.1T2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩7.5T	₩538.9B	7.2%
2025Q3	₩7.4T	₩524B	7.1%
2025Q4	₩7.5T	₩508.3B	6.8%
2026Q1	₩7.8T	₩521.5B	6.7%
2026Q2	₩8.7T	₩495.1B	5.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩27T	₩1.8T	₩1.2T	6.7%	17.3%	101.7%
2023	₩25.7T	₩1.6T	₩1.1T	6.1%	13.7%	89.2%
2024	₩28.4T	₩1.8T	₩1.1T	6.2%	12.5%	91.3%
2025	₩29.6T	₩2.1T	₩1.7T	7.0%	16.7%	78.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The annual trend has been a gradual climb. Revenue moved from KRW 26.98tn in 2022 to KRW 25.68tn in 2023, KRW 28.41tn in 2024 and KRW 29.57tn in 2025, while operating profit recovered from KRW 1,798.5bn to KRW 1,554.0bn, KRW 1,752.9bn and KRW 2,073.0bn over the same span.

The operating margin bottomed at 6.1% in 2023 before improving to 6.2% in 2024 and 7.0% in 2025.

Net profit attributable to owners reached KRW 1,733.7bn in 2025, up sharply from KRW 1,093.9bn in 2024, reflecting higher operating profit plus, as Hana Securities noted in a January 2026 report, a base effect from the prior year's equity-method loss at Hyundai Engineering and improved foreign-exchange gains.

On a quarterly basis revenue expanded from KRW 7,516.0bn in 2Q25 to KRW 7,812.7bn in 1Q26 and KRW 8,705.4bn in 2Q26, but operating profit slipped from KRW 538.9bn to KRW 521.5bn and then KRW 495.1bn. The quarterly operating margin therefore eased from 7.2% in 2Q25 to 5.7% in 2Q26.

Management framed the second-quarter decline not as a change in competitiveness but as a timing gap between the fuel-cost increase and its pass-through into freight rates, and guided to gradual recovery in the second half as rates are adjusted.

Net profit attributable to owners fell from KRW 503.2bn in 2Q25 to KRW 340.3bn in 1Q26; KB Securities said in an April 2026 report that a large currency translation loss was booked in the first quarter and described it as temporary.

The balance sheet has strengthened, with the debt-to-equity ratio down from 101.7% in 2022 to 78.9% in 2025 and operating cash flow rising from KRW 2,122.4bn in 2024 to KRW 2,500.8bn in 2025.

First-half operating profit of KRW 1,016.5bn sits slightly below half of the KRW 2.1tn annual guidance, making the pace of second-half cost pass-through the swing factor.

Industry analysis

The finished-vehicle ocean transport market sits in an unusually tight balance of demand and capacity. Geopolitical risk around the Middle East and Red Sea has pushed many car carriers onto longer routes around the Cape of Good Hope, lengthening voyages and deepening the capacity shortage.

On the demand side, Chinese exports are the key variable: Meritz Securities analyst Kim Jun-sung noted in June 2026 that China exported 930,000 vehicles in May 2026, up 69% year on year, with annual volume expected to exceed 10m units.

Hyundai Glovis stands directly in that flow, and Heungkuk Securities said in a March 2026 report that the company held the number-one share of China-origin cargo at 12% as of 2025. Container logistics, by contrast, points the other way.

The company said second-quarter 2026 logistics operating profit fell 5.9% as contract rates were reset on weaker container freight markets, showing that shipping and logistics are on different cycles.

On supply, car-carrier newbuilds are concentrated in Chinese yards, and the Export-Import Bank of Korea's overseas economic research institute characterized car carriers as simple in design, making them ultimately a cost-competition game.

Rival Japanese and European carriers have also notified shippers of surcharges for the U.S. port fee, so the industry is sharing the same regulatory cost. In short, the cycle reads as tight capacity and supported rates alongside rising cost volatility.

Outlook

Guidance for 2026 is revenue above KRW 31tn and operating profit above KRW 2.1tn, based on an assumed exchange rate of KRW 1,370 per dollar, softening container rates, rationalized car-carrier fleet operations, wider non-affiliate sales and an integrated knock-down parts system. Fleet expansion is under way.

In April 2026 the company deployed Glovis Leader, an ultra-large car carrier able to load 10,800 small vehicles, followed by Glovis Lighthouse in June and later Glovis Lander, putting three sister ships into service.

Including these, the plan is to grow the car-carrier fleet to 128 vessels by 2030 and lift annual seaborne vehicle volume from 3.4m to 5m units.

Chartering also continues: on September 2, 2026 Korea Line said it had signed a KRW 73.0bn long-term car-carrier charter with Hyundai Glovis running for five years and four months from November.

In distribution, integrated knock-down operations are widening alongside the Ulsan smart KD center and a planned integrated smart KD center in the Yeongnam region targeted to start operations in 2029.

New-business lines include bidding for clean-energy transport such as LNG carriers, entry into air cargo, and autonomous navigation; in June 2026 the company signed a four-party agreement with G Marine Service, Avikus and the Korean Register to validate remote-operation control for car carriers.

KB Securities said in a May 2026 report that the company is expected to begin Atlas pilots at logistics centers from mid-2026 and deploy Atlas for parts sequencing at auto plants from 2028.

On the other side, negotiations over sharing the U.S. port fee and the path of fuel prices remain the measurable variables for second-half margins.

Valuation

PER

10.0×

PBR

1.4×

ROE

15.2%

EPS

₩20,548

BPS

₩145,218

Dividend per share

₩5,800

The earnings-based multiple sits less at an extreme within the auto and transport space than in a middle zone: above the single-digit range in which this stock traded for years before robotics expectations were priced in, yet below growth-stock premium territory.

Relative to book value the shares carry a premium, a relationship that held even as equity built quickly from KRW 6,879.6bn in 2022 to KRW 10,388.5bn in 2025.

For reference, KB Securities maintained a Buy rating and a target price of KRW 360,000 in a May 2026 report, citing an implied price-to-earnings multiple of 15.7 times and price-to-book of 2.90 times at that target, while Hanwha Investment & Securities maintained a target of KRW 370,000 in an April 2026 report.

There are facts pointing the other way.

The Korea Economic Daily reported that in July 2026 Hyundai Motor Securities cut target prices on nine Hyundai Motor Group-related names, including Hyundai Motor, Kia and Hyundai Glovis, by an average of 16.50%, recalibrating valuations that had been set high on robotics and autonomous-driving expectations.

On dividends, the payout per share for fiscal 2025 was raised from the prior year, and on the second-quarter 2025 call management referred to maintaining a payout ratio of at least 25% and said the dividend policy would be updated at an appropriate time.

In other words, this is not a multiple explained by earnings alone: the Boston Dynamics stake value and shareholder-return policy are layered on top, and the pace of those two variables can change the very basis of the multiple the market applies.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

China-origin non-affiliate cargo meets a capacity shortage

Meritz Securities noted in June 2026 that China exported 930,000 vehicles in May 2026, up 69% year on year, with annual volume expected to top 10m units. At the same time, detours around the Middle East and Red Sea have lengthened car-carrier voyages and tightened available capacity.

Hyundai Glovis said about 53% of its 2025 finished-vehicle ocean transport revenue came from non-affiliates, and Heungkuk Securities reported in March 2026 that the company held the top China-origin share at 12%. That gives it a volume axis able to move independently of group shipments.

Ultra-large ships and long-term charters reshape costs

After deploying the 10,800-unit Glovis Leader in April 2026, the company put three sister vessels into service in sequence, and it targets a 128-ship car-carrier fleet moving 5m units a year by 2030.

LS Securities said in a January 2026 report that 10,800-unit long-term charters would be delivered from April 2026, replacing high-cost short-term charters. In September 2026 it signed a KRW 73.0bn long-term charter with Korea Line, adding capacity for five years and four months from November. Larger vessels and a bigger share of long-term charters widen the room for unit-cost improvement.

Cash flow and balance sheet provide support

Operating cash flow rose from KRW 2,122.4bn in 2024 to KRW 2,500.8bn in 2025, while the debt-to-equity ratio fell from 101.7% in 2022 to 78.9% in 2025. Equity expanded from KRW 6,879.6bn in 2022 to KRW 10,388.5bn in 2025, enlarging the capacity to fund fleet investment and dividends at the same time.

On the second-quarter 2025 call management referred to maintaining a payout ratio of at least 25%, and the fiscal 2025 dividend per share was raised from the prior year. That financial metrics did not deteriorate during a heavy fleet build-out is evidence on the stability side.

Bear factors

Five straight quarters of margin decline

The quarterly operating margin fell in sequence from 7.2% in 2Q25 to 7.1% in 3Q25, 6.8% in 4Q25, 6.7% in 1Q26 and 5.7% in 2Q26. Over the same period revenue rose from KRW 7,516.0bn to KRW 8,705.4bn while operating profit fell from KRW 538.9bn to KRW 495.1bn.

In other words, top-line growth has not been converting fully into profit. Management called it a temporary effect of the lag between fuel prices and freight-rate pass-through, but a longer lag would tighten the path to annual guidance.

An unresolved variable: sharing the U.S. port fee

From October 14, 2025 the U.S. Trade Representative imposed a port fee of USD 46 per net ton on foreign-built car carriers, and the company said the burden runs to USD 920,000 per vessel.

On the third-quarter 2025 call, Chief Executive Lee Kyu-bok called it effectively an additional tariff on imported vehicles and said cost-sharing talks with automakers were under way.

Yet observers also noted that with automaker profitability squeezed by high U.S. auto tariffs, aggressive pass-through may meet resistance. Until the sharing ratio is settled, the downside to shipping margins is hard to quantify.

Weak container market and slowing end demand

The company said second-quarter 2026 logistics operating profit fell 5.9% as contract rates were reset on weaker container freight markets. The 2026 guidance likewise assumes container rates drift lower.

Heungkuk Securities noted in a March 2026 report that global auto sales may peak at roughly 93.74m units in 2026 before entering a slowdown. If shipping strength stops offsetting logistics weakness, defending the group margin becomes harder.

Risk factors

Fuel and currency volatility

A bunker-fuel spike tied to Middle East geopolitics landed concentratedly on second-quarter 2026 profitability. Shinhan Securities analyst Choi Min-ki said fuel increases pass into freight rates via bunker surcharges with a two-to-three-month lag, which also means repeated timing losses if fuel keeps rising.

Currency cuts both ways. LS Securities said in a January 2026 report that guidance assumes KRW 1,370 per dollar with sensitivity of about KRW 12.0bn of operating profit per KRW 10 move, while KB Securities noted a large currency translation loss booked in the first quarter of 2026.

Regulatory and trade policy

The U.S. port fee is capped at five charges per vessel a year, and the company said it will minimize incidence through dedicated shuttle vessels and separated U.S. routes.

Still, the policy has swung sharply in a short time: from a proposed USD 150 per CEU in April 2025, down to USD 14 per net ton in June, then back up to USD 46 in October. Korea's request to narrow the scope of the levy was not accepted. Environmental compliance costs, such as the European Union emissions trading scheme, run alongside.

Governance and expectation gaps

Hyundai Glovis directly holds 11.25% of Boston Dynamics, tying it to the robotics narrative, and Yuanta Securities advised watching whether SoftBank exercises its put option, the timing of any listing, and changes in Hyundai Glovis's shareholder returns. Those expectations can unwind independently of earnings.

The Korea Economic Daily reported that in July 2026 Hyundai Motor Securities cut target prices on nine group-related names by an average of 16.50%, attributing it to a recalibration of valuations set on robotics and autonomous-driving hopes.

With no confirmed listing schedule or stake-restructuring method, the volatility of those expectations is itself a risk.

What to watch next

Late October 2026
Third-quarter 2026 results and conference call. The key checks are whether the second-half rate recovery management flagged actually shows up in shipping margins, and whether the group operating margin rebounds from the 5.7% seen in the second quarter.
November 2026
Start of the KRW 73.0bn long-term car-carrier charter signed with Korea Line. The five-year-four-month deal adds capacity, so it is worth checking how the replacement of high-cost short-term charters feeds into the cost structure.
Fourth quarter 2026
The outcome of shipper cost-sharing talks on the U.S. Trade Representative port fee and any policy change. How much of the USD 920,000 per-vessel burden at USD 46 per net ton is passed into freight rates will define the floor for car-carrier margins.
Late January 2027
Fourth-quarter 2026 results, 2027 annual guidance and the dividend decision. This is where the final outcome against the 2026 targets of KRW 31tn revenue and KRW 2.1tn operating profit appears, together with any concrete form of the dividend policy management said it would update at an appropriate time.
Second half 2026 through 2027
Whether Boston Dynamics begins a listing process and how Atlas pilots at logistics centers progress. Both the way the 11.25% stake held by Hyundai Glovis is valued and the pace of smart-logistics commercialization hinge on this.

Overall view

Hyundai Glovis posted record quarterly revenue of KRW 8,705.4bn in the second quarter of 2026, but operating profit of KRW 495.1bn pulled the margin down to 5.7%, leaving growth and margin moving apart.

On an annual view, revenue recovered from KRW 25.68tn in 2023 to KRW 29.57tn in 2025 and operating profit from KRW 1,554.0bn to KRW 2,073.0bn, while the debt-to-equity ratio fell from 101.7% in 2022 to 78.9% in 2025.

The bull case rests on surging Chinese vehicle exports, a car-carrier capacity shortage, a rising non-affiliate cargo mix, and cost-improvement room from 10,800-unit ultra-large vessels and the shift to long-term charters.

The bear case rests on five straight quarters of margin decline, a logistics division exposed to weak container rates, and an unresolved sharing ratio for the USD 46 per net ton U.S. port fee.

On valuation, earnings multiples are joined by the 11.25% Boston Dynamics stake and expectations around group governance restructuring, which is why brokerage target prices moved both up and down within the same year.

The order of things to verify is clear: whether rate pass-through reaches margins in the third-quarter results in late October, how the port-fee sharing ratio is settled during the fourth quarter, and what numbers appear in the January 2027 guidance and dividend decision. This report is for information purposes and contains no buy or sell opinion and no target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.