起亚 (000270.KS): Kia Corp: Reflecting external challenges, despite good execution; lower PT to Won170k

Maintain Buy, but lower PT to Won170,000. We update our earnings model to reflect recent headwinds that emerged, including stronger Korean won and potentially stiffer competition with Chinese automakers as their exports continue to accelerate. We reduce our Q326E OP estimate to Won2.5trn, which is modestly below consensus (Won2.6trn), and cut our 2027-28E EPS by 7%. That said, we maintain Buy rating given: 1) Kia's continued good execution transitioning to xEVs, which drives growth; 2) undemanding valuation at 5.8x 2027E P/E vs peer average (7x) and own history (4-9x), which already prices in weak industry fundamentals but does not reflect Kia's relative growth and any robotics optionality, in our view;