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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, November 3, 2025 — NH Investment & Securities has raised its target price for Kia Corp. from ₩135,000 to ₩150,000, citing the automaker’s entry into a new model-launch cycle starting in the fourth quarter of 2025, which is expected to drive strong top-line growth.
In a research note, analyst Ha Neul said, “Despite continued margin pressure from tariffs, higher incentives in Europe and the U.S., and rising warranty and R&D costs, Kia is set to enter a renewed phase of sales expansion from the fourth quarter.”
Kia reported third-quarter revenue of ₩28.69 trillion, up 8.2% year-on-year, while operating profit dropped 43.2% to ₩1.46 trillion due to weaker profitability. For full-year 2025, the brokerage projects revenue of ₩29.18 trillion (+1% YoY) and operating profit of ₩1.99 trillion (+9.7% YoY).
Ha attributed the margin decline to higher tariffs (₩1.23 trillion), expanded EV incentives in Europe, and higher end-period exchange rates that inflated warranty provisions. NH estimates Kia’s total tariff burden at ₩3.2 trillion in 2025 and ₩2.9 trillion in 2026, both reflecting a 15% tariff rate. Profitability is expected to improve once tariff-compensation measures are reflected in results.
The analyst noted that Kia will enter a full-fledged new vehicle cycle from late 2025, including multiple global launches:
Europe: Sportage PE, Stonic PE, K4, EV4, EV5 (Q4 2025), and EV2 (Q1 2026)
United States: Telluride 2nd generation (Q1 2026) and Seltos HEV (H2 2026)
“With a robust new product lineup across key markets, we expect Kia’s growth momentum to reaccelerate from the fourth quarter,” Ha said.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
