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Hyundai Glovis targets $29 billion in revenues by 2030
Hyundai Glovis CEO Lee Kyoo-bok introduces the company's business strategies during the 2024 CEO Investor Day event at Fairmont Ambassador Seoul, Friday. Courtesy of Hyundai Glovis
By Park Jae-hyuk
Hyundai Glovis seeks to increase annual sales to over 40 trillion won ($29 billion) by 2030 from the current 26 trillion won and raise its operating profit to 3 trillion won from 1.6 trillion won, the company said Friday.
The logistics firm plans to invest 9 trillion won over the next six years to achieve those goals.
For more investors to buy its shares, the Hyundai Motor Group affiliate introduced a new dividend policy that can increase its dividend per share from 6,300 won in 2023 to over 12,600 won in 2027. In addition, it decided to halve the price of each stock by doubling its outstanding shares through a bonus issuing, so that more retail investors can afford its stocks.
These medium- to long-term strategies were announced during the 2024 CEO Investor Day, which was held to communicate with investors and market analysts. This is the first time for Hyundai Glovis to hold such an event since its establishment in 2001.
“While managing our existing assets more efficiently, we will secure sustainable growth engines by investing 1.3 trillion won every year in core assets,” Hyundai Glovis CEO Lee Kyoo-bok said. “We will also consider a way to grow through M&As.”
In particular, Hyundai Glovis will inject 36 percent into the logistics business, 30 percent into the shipping business and 11 percent into the retail business. The remaining 23 percent will be spent on new businesses, such as the recycling of used batteries and the development of smart logistics solutions.
The company also aims to reduce its heavy reliance on Hyundai Motor Group’s other affiliates by attracting more customers who do not belong to the automotive group.
“We will do our best to achieve our medium-to-long-term goals by 2030,” the CEO said. “We will continue increasing transparent communication with the market, so that our company’s growth can benefit our shareholders immediately.”