[Click eStock] "Hyundai Mobis, Expected Growth in Electrification Sales"

Mirae Asset Daewoo Issues 'Buy' Investment Rating and Sets Target Price at 310,000 KRW... Closing Price on 30th Last Month Was 255,500 KRW

[Asia Economy Reporter Kum Boryeong] An analysis has emerged expecting growth for Hyundai Mobis.

According to Mirae Asset Daewoo on the 4th, Hyundai Mobis's Q4 performance last year is estimated at sales of 10.5 trillion KRW and operating profit of 645.8 billion KRW. Kim Min-kyung, a researcher at Mirae Asset Daewoo, explained, "Due to the recovery of domestic and overseas operating rates of Hyundai and Kia Motors, module and parts sales are expected to decrease by 2.8% and 4.8% respectively compared to the previous year," adding, "Although electrification sales slightly decreased compared to the previous quarter, they grew by 40% year-on-year, which will help offset the sales decline."

This year, electrification sales are expected to grow significantly to 6.3 trillion KRW, an increase of 53% compared to the previous year. In particular, the sales volume of eco-friendly vehicles (xEV) from Hyundai Mobis's largest customers, Hyundai Motor and Kia Motors, is expected to increase by 51% and 59% respectively compared to the previous year. Researcher Kim said, "Profitability improvement will accelerate due to the cost efficiency and economies of scale unique to the dedicated electric vehicle platform," and analyzed, "The proportion of electrification sales will expand from 7% in 2019 to 20% this year and 35% in 2025, enabling continuous external growth."

Core technological capabilities are becoming an in-house strength. Researcher Kim stated, "Amid the rising importance of EV powertrains across the industry, such as the recent JV announcement between LG Electronics and Magna, Hyundai Mobis has secured competitiveness in EV powertrains aligned with the development of E-GMP," adding, "The acquisition of Hyundai Autron's automotive semiconductor business division and investment in Boston Dynamics indicate that the group's hardware manufacturing capabilities related to electronics and autonomous driving are being concentrated."

Mirae Asset Daewoo gave Hyundai Mobis a 'Buy' investment rating with a target price of 310,000 KRW. The target price was revised upward from the previous 250,000 KRW. The closing price on the 30th of last month was 255,500 KRW.

This content was produced with the assistance of AI translation services.