[Click eStock] "Hyundai Wia, Earnings and Value Momentum Still Attractive"

Daishin Securities evaluated Hyundai Wia on the 5th, stating that its performance and value momentum remain attractive. They maintained a 'Buy' investment rating and a target price of 80,000 KRW.

Kim Gui-yeon, a researcher at Daishin Securities, said, "Concerns about overseas engine and domestic module volumes in the second quarter are limited compared to the previous quarter, and the steady performance of the drive and constant velocity joint divisions limits external concerns. Additionally, due to the one-time cost base from the establishment of a production-specialized affiliate in the first quarter, there is a high possibility of profitability improvement with increased sales in the machinery business."

Researcher Kim added, "The fundamental market concerns about Hyundai Wia are likely the reduction of the engine business and poor performance due to electrification and upsizing. However, Hyundai Wia's engine production capacity (CAPA) is 1.8 million units, and it will continue to play a role as the engine production affiliate within the group." He also forecasted, "Furthermore, visibility of a turnaround will expand with confirmation of performance bases in Mexico and Russia and securing hybrid (HEV) engine volumes."

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