EM ASIA CREDIT: Hyundai Motor: Cuts profit guidance
(HYNMTR; A3/A-/A-)
"*HYUNDAI MOTOR SEES 6-7% 2025 OP MARGIN; 7-8% PROJECTION IN JAN." - BBG
Hyundai cut its 2025 operating margin target overnight, primarily due to tariff impacts (38% of sales in the North America). This represents a relatively small setback, with the company guiding for margin improvement back to the original target range by 2027 (7-8%) supported by improvements in product mix, increased localisation, including EV production at the Ellabell plant in Georgia, USA, and new product launches. The outlook cut is modestly negative for credit spreads.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
MNI: MNI JAPAN JUNE CORE MACHINE ORDERS +3.0% M/M; MAY -0.6%
- MNI JAPAN JUNE CORE MACHINE ORDERS +3.0% M/M; MAY -0.6%
- JAPAN JUNE MACHINE ORDERS POSTS 1ST M/M RISE IN 3 MONTHS
MNI: JAPAN JULY EXPORTS -2.6% Y/Y; JUNE -0.5%
- MNI: JAPAN JULY EXPORTS -2.6% Y/Y; JUNE -0.5%
- JAPAN JULY EXPORTS POST 3RD STRAIGHT Y/Y DROP
ASIA STOCKS: South Korea, Taiwan See Outflows, Indonesia & India See Inflows
South Korea and Taiwan markets saw outflows from offshore investors yesterday. For Taiwan the nearly $500mn in outflows was the largest since July 29. For both markets, the 5 day sum is negative. Broader tech equity weakness continued in Tuesday trade. There has been some concerns voiced around the AI outlook recently, while proximity to Fed Chair Powell's speech this Friday may also be driving some nervousness in terms of broader market trends.
- Elsewhere we saw offshore investors return to India at the start of the week, with the recent equity bounce (aided by potential GST changes) drawing in some inflows. Still, cumulative outflows since the start of July were close to $4.7bn, so momentum needs to meaningful shift in order to bring us closer to neutral from a Q3 standpoint.
- Indonesian flows remained positive, while weaker trends were evident elsewhere in South East Asia. Malaysia continued its outflow streak.
Table 1: Asian Markets Net Equity Flows
| Yesterday | Past 5 Trading Days | 2025 To Date | |
| South Korea (USDmn) | -298 | -238 | -5146 |
| Taiwan (USDmn) | -491 | -240 | 4046 |
| India (USDmn)* | 116 | -582 | -12721 |
| Indonesia (USDmn) | 53 | 277 | -3280 |
| Thailand (USDmn) | -13 | -273 | -1969 |
| Malaysia (USDmn) | -18 | -141 | -3408 |
| Philippines (USDmn) | -21 | -7 | -620 |
| Total (USDmn) | -671 | -1203 | -23098 |
| * Data Up To Aug 18 |
Source: Bloomberg Finance L.P./MNI
