[Click e-Stock] "Hyundai Mobis: AS Division Safeguards Earnings... Target Price at 560,000 Won"

"AS Division, a Stable Profit Generator"
"Emerging as a Key Robotics Component Supplier"

Eugene Investment & Securities stated on April 13 that "the After-Service (AS) division, which serves as a stable profit generator, is driving performance improvement at Hyundai Mobis," maintaining its Buy rating and target price of 560,000 won.

On the same day, Eugene Investment & Securities analyst Lee Jaeil forecast Hyundai Mobis's first-quarter results for this year, estimating sales at 15.785 trillion won, operating profit at 815 billion won, and net profit attributable to controlling interests at 1.075 trillion won. These figures represent increases of 7.0%, 5.0%, and 4.3%, respectively, compared to the same period last year, and are in line with market expectations.

Structural growth continues as the non-genuine AS market contracts and the genuine parts market expands in the United States. The analyst commented, "The impact of tariffs can be absorbed through price increases," and added, "Starting from the second quarter, when existing inventory is depleted, the effects of tariff reductions will begin to materialize in earnest."

However, the improvement in profitability for the parts and module divisions appears to be somewhat delayed. The electrification business division continues to post losses due to the contraction of the U.S. electric vehicle market. In addition, benefits from the Advanced Manufacturing Production Credit (AMPC) have diminished due to reduced production, which has also had a negative impact.

In the second quarter, certain variables related to production disruptions will be key. Production setbacks are expected for some Hyundai Motor and Kia models due to a fire at Safe Industry, and there is also the possibility of supply chain disruptions stemming from geopolitical risks such as the war in Iran.

Regarding future growth engines, the analyst emphasized, "Supplying actuators and core parts to Boston Dynamics is establishing itself as a new growth driver for the future," and stressed, "Attention should be paid to the fact that Hyundai Mobis is emerging as a key robotics component supplier."

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