Hyundai Motor Co (HYU:F), the South Korean automaker, has announced a positive forecast for 2023, with projections of solid growth in vehicle sales and revenue. The company has set a target of 10.5-11.5% revenue growth this year, with a 9.6% increase in North American vehicle sales and a 20.5% surge in China vehicle sales. Additionally, Hyundai predicts an improvement in its operating profit margin, with a range of 6.5-7.5% compared to 6.9% in 2022.
This outlook echoes the positive outlook provided by Tesla (TSLA:NSD), who also reported strong demand for their vehicles due to aggressive price cuts. Following the announcement, shares in Hyundai stock increased 6% in afternoon trade. The company also reported a tripling of net profit to 1.7 trillion won ($1.4 billion) for the October-December period, however, this did fall short of the Refinitiv SmartEstimate of 2.5 trillion won from 18 analysts.
Hyundai also announced it will cancel 315 billion won worth of treasury stock, equivalent to 1% of outstanding common and preferred shares. The company, like many other automakers, benefited from the tight supply of new vehicles last year which has kept retail prices high.