[Click eStock] "Hyundai·Kia Investment Cycle... Hyundai Wia Benefits"

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities announced on the 21st that it expects Hyundai Wia's performance to far exceed market forecasts for this year and next, raising the target stock price to 150,000 KRW.

Researcher Kim Jun-sung of Meritz Securities stated, "With Hyundai and Kia restarting their investment cycle after ten years, the benefits of converting production facilities for B2C conveyor processes and expanding new facilities for cellular processes will begin," adding, "Strong performance improvements are expected, and changes will be confirmed starting from the second quarter of this year."

Hyundai and Kia have focused on technology (intangible asset) investments since 2018, and facility investments will be in full swing starting this year. It is expected that production bases will continue to expand to commercialize the secured technology. The existing process will shift from internal combustion engines to battery electric vehicles (BEV), and cellular processes for small-volume, multi-product production are also expected to increase significantly.

Researcher Kim said, "With the expansion of new Hyundai and Kia models and increased BEV orders from overseas complete vehicle manufacturers, sales of highly profitable four-wheel drive systems and constant velocity joints are rising sharply," adding, "The recovery of engine performance due to business structure changes and the reflection of integrated thermal management system performance starting in 2023 will also contribute. The steep increase in orders through differentiated technological advancements will raise both short-term and long-term performance expectations."

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