[Click eStock] "Hyundai Movex Expected to Expand New Orders in Second Half... Target Price Raised"

Target Price Raised by 10% from Previous Level

On September 4, NH Investment & Securities announced that it expects new orders for Hyundai Movex to increase in the second half of the year and has raised its target price from 7,000 won to 7,700 won. The investment opinion remains 'Buy'.

Jung Yeonseung, a researcher at NH Investment & Securities, stated, "Due to new orders expected in the second half of 2025, the order backlog is projected to rise, which should enable performance growth through 2027. As a result, we have adjusted the timing for calculating the target price. We also raised the target price-earnings ratio (PER) valuation to reflect the share price increases of global logistics automation solution companies." He added, "Although we have revised down our estimate for Hyundai Movex's operating margin due to unfavorable exchange rates, it is important to focus on the expansion of new orders and long-term sales growth potential."

As of the first half of this year, Hyundai Movex secured 150 billion won in orders, and it is expected to achieve over 250 billion won in new orders in the second half. Jung commented, "We anticipate logistics automation orders for energy storage systems (ESS), cosmetics, and home appliances from domestic companies, and for the first time, we also expect orders from a global tire company." He continued, "The order backlog in the first half was 421.5 billion won, and considering new orders in the second half, both external growth and profitability improvements are possible through 2027. The proportion of high-margin maintenance sales is also expected to rise, which will further increase the operating margin in the long term."

NH Investment & Securities estimates Hyundai Movex's 2027 revenue at 548.5 billion won. Jung explained, "Additional revenue expansion is possible through workforce expansion. Although the global logistics automation market is growing at an average annual rate of 10 to 15 percent, Hyundai Movex's external growth rate exceeds this." He added, "Unlike domestic competitors that focus on specific industries under their affiliates, Hyundai Movex has carried out projects across a wide range of industries such as distribution, food and beverage, and tires, resulting in a broader order portfolio." He further noted, "The company's debt-free structure and proactive shareholder return policy also set it apart as an investment point compared to its peers."

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