"SNT Motiv Returning to Growth... Hana Securities Raises Target Price"

Top-line Growth Expected to Resume
"Sales and Operating Profit to Rise 6% Each This Year"

Hana Securities has maintained its ‘Buy’ investment rating on SNT Motiv, raising the target price to 31,000 won, citing resumed top-line growth and expectations for expanded future growth potential.

According to a Hana Securities report on the 14th, researcher Song Sunjae stated, “The decline in Drive Units (DU) and drive motors, which continued for five quarters since Q4 2023, has come to an end. From 2025, top-line growth is expected to resume, driven by the base effect as well as increases in HSG motors, electronic oil pumps, and defense exports.”

He also said, “New orders secured from the second half of 2024 to early 2025 will be realized as sales over 2026-2027, so growth potential is expected to expand after 2026.”

Hana Securities forecasts SNT Motiv’s sales and operating profit this year to increase by 6% each, reaching 1.03 trillion won and 104.4 billion won, respectively.

Song explained, “In the defense sector, domestic machine gun sales will decrease, but exports are expected to surge from the second half, resulting in a 4% increase. In the auto parts division, HSG motor sales will rise thanks to increased hybrid vehicle production by clients, and sales of electronic oil pumps, which began deliveries at the end of 2024, will also be reflected.”

He added, “Potential orders to watch closely this year include whether DU deliveries will resume if GM restarts Bolt EV production, and whether deliveries of HSG motors for HEVs will expand when collaboration between Hyundai Motor Group and GM begins.”

SNT Motive.

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