[Click eStock] "Hyundai AutoEver, Rapid Earnings Growth and Energy Division Expectations... Target Price Up"
DS Investment & Securities raised the target price for Hyundai AutoEver to 210,000 KRW on the 4th.
Hyundai AutoEver recorded sales of 753.9 billion KRW and operating profit of 52.7 billion KRW in the second quarter. Compared to the same period last year, sales increased by about 20% and operating profit by about 83%, significantly exceeding market expectations. Sales grew across all sectors, and the ratio of selling and administrative expenses to sales reached a record low of 4.6%. In particular, the installation rate of in-vehicle navigation software in the customer group’s vehicles has been trending upward, resulting in a high growth of 34% in related sales.
DS Investment & Securities forecasts that Hyundai AutoEver will achieve sales of 3.174 trillion KRW this year and 3.594 trillion KRW next year. The global average navigation installation rate is around 30%, and as electric vehicles become more widespread, navigation installation will become essential, suggesting mid- to long-term benefits.
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Kim Suhyun, a researcher at DS Investment & Securities, said, "Considering the shareholding structure (Chairman Chung Euisun holds 7.3%), which could be utilized for future succession, Hyundai Motor Group is expected to play a key role in the digitalization transition process."
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