[Click eStock] "Hyundai Mobis Reaffirms Growth Targets... Spotlight on Robotics Business"

Top Pick Maintained, Target Price Unchanged

On August 28, DS Investment & Securities stated that "as Hyundai Mobis reaffirmed its financial targets through 2027, the negative impact on its stock price is expected to be limited," adding, "It is important to pay attention to the process of materializing the robotics business in the future." The firm selected Hyundai Mobis as its top pick in the sector, maintaining a 'Buy' rating and a target price of 360,000 KRW.

During the '2025 CEO Investor Day,' Hyundai Mobis presented robotics as a new growth pillar, in addition to core parts for electrification and software-defined vehicles (SDV). The company plans to expand its business in the order of actuators, sensors, controllers, batteries, and hand grippers. After establishing a captive demand base, it aims to diversify into non-captive areas in the future.

The internalization of automotive semiconductors has also become more concrete. In the field of system semiconductors, the company plans to begin mass production of network SoCs in 2030, apply gate drivers starting in 2029, and implement battery sensing chips (BMIC) in 2028. For power semiconductors, Hyundai Mobis confirmed plans to mass-produce SiC IGBTs for HEVs in 2026 and SiC power semiconductors for EVs in 2029.

Hyundai Mobis has maintained its previously announced targets for 2027: a compound annual growth rate (CAGR) of 8% in sales and an operating margin of 5-6% (with operating profit exceeding 4 trillion KRW). The segmental growth targets are 13% for electronics, 14% for body & safety, and 33% for electrification, with more than half of electrification sales to be achieved overseas. Choi Taeyong, a researcher at DS Investment & Securities, commented, "Unlike last year, despite negative tariff impacts, it is notable that the company emphasized its ability to achieve its guidance through its own capabilities."

The company also reaffirmed its financial strategy and shareholder return policy. Hyundai Mobis plans to invest 2.6 trillion KRW in the electrification division to expand its global bases to 20 by 2027. Along with maintaining the total dividend amount, it announced an increase in interim dividends to 1,500 KRW. In addition, the company disclosed the cancellation of 700,000 treasury shares as of 2025 and stated its commitment to maintaining a total shareholder return (TSR) of over 30%.

Researcher Choi explained, "Achieving the annual break-even point in the manufacturing division this year is key to Hyundai Mobis's structural improvement, and the after-sales division is expected to maintain solid profitability despite exchange rate fluctuations through supply chain optimization."

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