Shinhan Investment Corp. maintained its "buy" rating for Hyundai Mobis on July 2, reflecting expectations for reduced losses in the manufacturing sector and growth potential in its robotics business. However, the firm adjusted its target price from 900,000 won to 790,000 won, citing a decline in global automotive sector valuations.
Park Kwang-rae, an analyst at Shinhan Investment, stated, "In the short term, the robust profitability of the after-service (A/S) sector will support the stock price, while the reduction of manufacturing sector losses will be a key factor for a rebound in the second half of the year. In the medium to long term, the robot actuator business will be crucial for expanding valuations."
Shinhan Investment forecasts Hyundai Mobis's operating profit for the second quarter of this year to reach 892.1 billion won, a 2.5% increase compared to the same period last year. The A/S sector is expected to maintain profitability due to favorable exchange rates and an increase in global vehicle operations, while the manufacturing sector's losses are projected to decrease from approximately 120 billion won in the first quarter to between 60 billion and 80 billion won in the second quarter.
Additionally, the robotics business is highlighted as a medium to long-term growth driver. Shinhan Investment anticipates that actuators used in Boston Dynamics' humanoid robot, Atlas, will serve as a new revenue source for Hyundai Mobis, with sample sales expected in the second half of 2027 and full-scale production anticipated in 2028.
Park noted, "The current stock price reflects the stable profitability of the A/S business, but it does not fully account for the normalization of manufacturing and the value of the robotics business."
* This article has been translated by AI.
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