[Click eStock] "Hyundai Mobis, Target Price Maintained at 330,000 Won"

Daishin Securities maintained a target price of 330,000 KRW and a buy rating for Hyundai Mobis on the 20th.

Kim Gui-yeon, a researcher at Daishin Securities, said, "If the earnings momentum is added with low burden, re-rating is expected," and added, "Since the expectations have been reflected continuously after the October briefing disclosure, a short-term stock price decline due to the disappearance of event momentum is expected." However, he forecasted, "The downside risk will be limited as shareholder return visibility has expanded based on stable earnings."

The day before, Hyundai Mobis held its first-ever CEO Investor Day. Hyundai Mobis presented a mid-to-long-term average annual sales growth rate of +8% by 2027 (electronic components +18%, non-captive +43%) and an OPM of 5-6%. Considering 2023 sales of 59.3 trillion KRW and operating profit of 2.3 trillion KRW (OPM 3.9%), this implies projected 2027 sales of 81 trillion KRW and operating profit of 4 to 4.8 trillion KRW. To achieve this, the company plans to expand sales in electronic components and non-captive sectors, reduce burdens from R&D and depreciation expenses for profitability, and strengthen profitability management by order and project.

Based on the profitability enhancement strategy, Hyundai Mobis aims for a total shareholder return rate (TSR) of 30% from 2025 to 2027. The company plans to retire existing treasury shares. In particular, by presenting a total shareholder return rate of 30% based on consolidated net profit (including equity-method gains and losses), excluding previous equity-method profit-based dividends, visibility has been expanded. Based on the estimated operating profit of 4.6 trillion KRW from 2024 to 2026, annual shareholder returns of more than 1.2 trillion KRW are expected. The expected shareholder return for 2024 is 450 billion KRW in dividends

(based on DPS of 5,000 KRW) and 163 billion KRW in treasury stock purchases, anticipating an additional shareholder return expansion of approximately 587 billion KRW.

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