Investment highlights
We expect Kia Motors' (OTCPK:KIMTF) 2Q19 operating profit to come in at KRW464.8bn (+32% YoY, 3.2% operating margin), 7% higher than the consensus estimate. Wholesale volume was flat YoY (-1.4% YoY excluding China) but FX movements against most currencies turned favorable YoY. In addition, the fully recognized sales of Telluride and the fading effect of decreased production of Santa Fe in the US last year helped minimize the impact of the deteriorating product mix in the domestic market. The KRW depreciation against the USD was milder than expected but we believe