Hana Securities has reduced its target price for Hyundai Mobis from 770,000 won to 680,000 won, reflecting delays in the turnaround of its electrification division and a decline in the value of its affiliated companies. However, the firm maintained its 'buy' rating, considering the growth potential of the automotive parts business and the expansion possibilities in robotics.
In a report released on July 27, analyst Song Seon-jae noted that Hyundai Mobis' second-quarter performance exceeded expectations, driven by profitability in the module and core components sectors and improved margins in the after-service (AS) segment.
He stated, "In the second half of the year, cost pressures will increase due to rising raw material prices and shipping costs, as well as expanded operating losses in India. However, profitability can be defended due to increased production from clients, favorable exchange rates, and mix effects. The steady growth of the automotive parts business, the rising value of its stake in Boston Dynamics (BD), and securing future growth drivers through robotics components will support the stock's upward momentum," he analyzed.
Additionally, he projected that the second half of the year will see the supply of prototype robotic actuators, the establishment of a value chain, and the construction of factories, which will positively impact the expansion of items such as grippers, sensors, and battery modules.
Song also mentioned that Hyundai Mobis anticipates operating losses of around 100 billion won due to a fire in India, stating that the company plans to respond with temporary production lines and expects full normalization of operations by next year.
Furthermore, regarding the robotics business, he noted that the company has secured orders for 31 types of body actuators for the BD Atlas and plans to deliver prototypes in November, while also collaborating on gripper components. The components are expected to be produced through in-house manufacturing and outsourcing to partner companies.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.