- Sales growth will likely sustain across all divisions: domestic logistics should benefit from the expansion
of third-party logistics; pure car carriers (PCCs) from recovering exports by Hyundai Motor Company
(005380.KS, BUY) and Kia Motors (000270.KS, BUY); bulkers from better market conditions; CKD from
recovering emerging markets and fresh sales generated from Vietnam; overseas subsidiaries from
recovering market conditions in emerging markets.
- PCCs will likely provide a key growth catalyst in 2018: As Hyundai/Kia adjust their contract with Eukor Car Carriers, which will likely boost the percentage of export vehicles that Glovis carries on behalf of the
automakers from 50% in 2016-2017 to 60% in 2018-2019, the already recovering PCC business should gain further momentum.
- Potential M&As could further accelerate growth and the company’s cash hoard continues to pile up. We believe the stock is trading at historically low valuations by any standard.
Glovis is engaged in the business of freight transport arrangement including overseas and local logistics. Co. is also engaged in the automobile completely knocked down components and used car distribution businesses.
Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc.
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