[Click eStock] "Hyundai Wia, Operating Rate Increase and Acceleration of New Business 추진"

[Asia Economy Reporter Park Ji-hwan] IBK Investment & Securities maintained a 'Buy' rating and a target price of 110,000 KRW for Hyundai Wia on the 8th, expecting structural changes driven by new business initiatives.

Lee Sang-hyun, a researcher at IBK Investment & Securities, stated, "The operating performance in the fourth quarter of last year fell short of expectations," adding, "Fourth-quarter sales reached 1.89 trillion KRW, a 5% increase compared to the same period last year, but operating profit was 12.8 billion KRW, down 37% during the same period." The operating margin also declined by 0.4 percentage points to 0.7%.

He explained that structural changes are anticipated due to new business initiatives amid improved operating rates. The researcher forecasted, "In the vehicle sector, improvements in operating rates are expected due to the recovery of finished car sales, increased supply of four-wheel drive parts driven by higher Genesis and SUV sales, full-scale expansion of constant velocity joint supply to OEMs outside the group, and improved profitability of overseas subsidiaries."

In the machinery sector, the company plans to achieve breakeven through cost reduction and expanded sales of new models, and will pursue new business transitions such as electric vehicle assembly automation, logistics automation robots, and parking robots as part of a future smart factory initiative.

Notably, in new businesses, the thermal management system was selected as a mass production company for the 2023 EGMP model and aims to develop thermal management and air conditioning systems by 2025. For hydrogen vehicles and future technologies, preparations are underway to supply hydrogen storage modules and air compressors for the second generation of Nexo around 2023.

The researcher added, "We have set a goal to achieve sales of 12 trillion KRW by 2030 by promoting the development of composite materials and modules for future mobility such as UAM and PBV."

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