Hyundai Mobis CES 2025 exhibition booth perspective. /Courtesy of Hyundai Mobis

Hana Securities analyzed on the 31st that Hyundai Mobis exceeded market expectations due to the high growth and profitability in the after-sales (AS) institutional sector, improvements in the mix of core components, price increases, and efforts to recover costs and reduce expenses. Accordingly, the investment opinion remains 'buy,' and the target stock price has been slightly raised from 270,000 won to 280,000 won. The closing price of Hyundai Mobis on the previous trading day was 263,500 won.

Hana Securities has raised its earnings estimates for Hyundai Mobis for this year and next year. Song Seon-jae, a researcher at Hana Securities, noted, 'Despite the burden of slow production at client companies and continued deficits in the electrification sector, a stable cash flow is being generated in the AS sector, and profitability is turning around due to the increase in high value-added electronic components and the introduction of improved items in the core components sector.'

Hana Securities' sales and operating profit for the fourth quarter of last year were 14.7 trillion won and 986.1 billion won, respectively. Of this, AS sales recorded 3.13 trillion won, marking a 12% increase compared to the previous year. Analysts say that strong performance continued in Europe and the Americas. The module sector turned to profit starting from the third quarter, showing results despite decreases in volume, quality expenses, and costs at U.S. electrification plants, due to mix improvement, cost recovery, and expense reduction activities.

Research Institute Song said, 'Last year, Hyundai Mobis's order amount was $2.57 billion, which was only 27% of the annual target of $9.335 billion, due to reduced demand for electric vehicles and global policy uncertainties that delayed client companies' electric vehicle projects.' He predicted, 'This year, not only client diversification but also diversification of ordered products and markets will be pursued simultaneously to continue stable growth.'