CFA Institute Research Challenge Hosted by CFA Society Korea Handong University Special Equity Research Report CFA Institute Research Challenge A crisis is a chance: Hyundai, soar alone! Company Financial crisis has always provided opportunities to new businesses in the automobile Hyundai Motor (005380) market. In 2008, Hyundai rapidly increased its M/S by launch of new models and active marketing, leading to quantitative growth. Currently, low-growth, high oil prices and Rating downsizing are key factors in automobile industry. Hyundai attracts customers from all around the world by appealing design, high mileage, and localization. Hyundai also BUY prepares qualitative growth through increase in brand value and ASP. Asia Using the DCF and PER valuation, we set our target price for Hyundai Motor at 352,000 Korea, Republic of won and we recommend "Buy" with 64.5% upside potential. Automobile Industry & Components Investment Summary Target Price – 2013 (KRW) 352,000 Price at Nov 9 2012 (KRW) 214,000 1. Quantitative Growth Upside (%) 64.5% (1) Emerging Market – Quantitative Growth driver Mkt cap current (bn) 50,333 We predict Hyundai will make quantitative growth by capacity expansion in China and 52 week range (KRW) 200,500 ~ 272,500 KOSPI 1,890 Brazil amid increase of demand and more than 50% of sales proportion in emerging markets. Research Analyst Hand ong University (2) European Market - Remind of their success strategy in U.S in 2009 Ju Sung Hwang
[email protected] While competitors in Europe are struggling, Hyundai will reenact outcome made in U.S Ung Gu
[email protected] based upon launch of strategic models (i30, i40) and aggressive marketing through Ji eun Kim
[email protected] relatively abundant funds.