Sangsangin Investment & Securities projected that Hyundai Mobis will continue to post solid results. It raised its target price from the previous 290,000 won to 310,000 won and suggested a 'buy' investment opinion. On the most recent trading day, 17th, Hyundai Mobis closed at 252,500 won, indicating a potential upside of 22.8% compared to Sangsangin Investment & Securities' target price.
On the 20th, Yu Min-ki, a researcher at Sangsangin Investment & Securities, noted, "Even excluding one-time factors from returns based on pricing negotiations with completed vehicle manufacturers in the third quarter of last year, Hyundai Mobis recorded solid results," adding, "The fourth quarter will continue the trend."
Sangsangin Investment & Securities estimated that Hyundai Mobis's revenue for the fourth quarter of last year was 14.4 trillion won, and operating profit was 783.6 billion won. While revenue decreased by 2.1% compared to last year, operating profit increased by 49.7%.
Research Institute Yu stated, "The number of vehicles sold by the group's completed vehicle manufacturers in the fourth quarter is expected to have decreased by 1.6% compared to the same period last year," and added, "As the proportion of electric vehicles (BEV) in the electrification product mix fell below the initial target, losses in the electrification sector will continue."
He also predicted that the module business sector will maintain a similar trend compared to the previous quarter and achieve a profit of around 1%. The core components sector, including vehicle power components, is expected to see growth rates exceeding vehicle sales, thanks to increased average selling prices (ASP) of infotainment systems due to CCNC integration and new sales recognition from over-the-air software updates.
Research Institute Yu said, "The growth trend of core components is expected to continue in 2025," adding, "While the A/S sector is expected to benefit from positive exchange rate effects, the renewal of contracts with Hyundai GLOVIS will lead to increased freight rates, resulting in minimal overall profit enhancement."
Thanks to strong A/S sector performance in North America and Europe, it is expected that the fourth quarter will record growth of over 10% compared to the same period last year, according to Research Institute Yu. He stated, "This year's A/S sector revenue trend will show a pattern similar to last year."
He added, "Hyundai Mobis mentioned during last year's CEO Investor Day that it aims for a total shareholder return (TSR) of 30% based on net income including equity method gains," and noted, "It will focus on share buybacks and cancellations in the first half based on expanded resources."