[Click eStock] "Myungshin Industry Expected to Benefit from North American Robotaxi Expansion... Undervaluation Appeal Highlighted"

On March 12, Hanyang Securities analyzed that expectations are rising for Myungshin Industry to benefit from the expansion of mass production of robotaxis in North America. In particular, the company is drawing attention for its potential to expand performance leverage, based on its strong supply connections with North American electric vehicle manufacturers and its global production bases, which also highlight its undervaluation appeal.

Myungshin Industry is an auto parts company specializing in lightweight car body components produced using the hot stamping process. Hot stamping components account for the majority of its sales, and its main customers include the largest electric vehicle manufacturer in North America, as well as Hyundai Motor and Kia. The company has established global production bases, including in Texas, USA, and has built a supply chain located near the North American production sites of its key customers, enabling just-in-time delivery.

The company's performance experienced a temporary adjustment last year due to a slowdown in the electric vehicle market. Myungshin Industry's consolidated sales last year reached 1.62 trillion won, up 2.9% year-on-year, maintaining its growth trajectory. However, operating profit decreased by 32% to 100.7 billion won. The stagnation in electric vehicle demand and the burden of initial investment costs have been cited as reasons for the decline in profitability.

Junseok Lee, a researcher at Hanyang Securities, stated, "This is a parts supplier whose competitiveness stands out during an industry adjustment phase," adding, "Although profitability has temporarily declined due to stagnant electric vehicle demand and initial cost burdens, this is merely the result of an overall industry adjustment. The company’s proven mass production capabilities and cost-saving technologies continue to earn strong customer references."

In particular, future expansion of the robotaxi market is considered a key growth driver for Myungshin Industry. The company is one of the domestic parts suppliers with a high reliance on North American electric vehicle manufacturers, with related sales accounting for about 60%. This means its role goes beyond simple parts supply, placing it at the core of its customers’ global production strategies and supply chains.

The customers are evaluated as having strong potential to lead the robotaxi market based on their competitiveness in autonomous driving software. Since unveiling a vehicle in February, expectations have grown for mass production to begin in earnest in the first half of this year. Accordingly, Myungshin Industry’s supply of hot stamping parts is also expected to enter a growth phase.

Researcher Lee commented, "Hot stamping is a car body technology suited for robotaxi and next-generation platforms that demand both weight reduction and enhanced safety," adding, "The company has secured a local supply chain in North America, including Texas, and is well-positioned to respond to customer production expansions and new vehicle ramp-ups."

Expectations for a recovery in performance are also rising. As the impact of the electric vehicle chasm diminishes and demand gradually normalizes, new lineup launches by customers and expansion of North American production are expected to accelerate. In addition, the growth of overseas subsidiaries is expected to further support performance.

In particular, the Brazilian subsidiary is expected to rapidly increase its contribution to sales. Sales, which had been around 70 billion won, are forecast to grow to 160 billion won this year, helping to support the company’s overall performance base.

Researcher Lee analyzed, "Although last year’s electric vehicle chasm temporarily slowed growth in upstream demand and overall performance, we believe profitability will normalize again this year."

From a valuation perspective, the company’s undervaluation is also becoming more prominent. The current share price is at 5.1 times the 2026 projected price-to-earnings ratio (PER) and 0.6 times the price-to-book ratio (PBR), both near the historical valuation bottom.

Researcher Lee emphasized, "The current share price does not fully reflect the potential for performance recovery. Considering the start of mass production of robotaxis, sales recovery from the activation of new customer lineups, increased profit contributions from overseas subsidiaries, and the possibility of a reduction in the low PBR discount, the current share price represents an attractive entry point in terms of both fundamentals and policy momentum."

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