DS Investment Securities noted on the 26th that the concerns regarding tariffs from the United States over Hyundai Mobis, a subsidiary of Hyundai Motor Group, are likely to be resolved. It maintained an investment opinion of "buy" and raised the target price from 330,000 won to 360,000 won. The closing price for Hyundai Mobis on the previous trading day was 281,500 won.

The holographic windshield display showcased by Hyundai Mobis at CES 2025 presents real-time driving information and various infotainment systems on the front windows of the driver and passenger seats. / Courtesy of Hyundai Mobis.
The holographic windshield display showcased by Hyundai Mobis at CES 2025 presents real-time driving information and various infotainment systems on the front windows of the driver and passenger seats. / Courtesy of Hyundai Mobis.

Choi Tae-yong, a researcher at DS Investment Securities, forecasted, "Tariffs on parts or captive vehicles will be determined on the 2nd of next month, but considering President Trump's positive reaction to Hyundai's investment in the U.S., there is a high likelihood that tariff concerns will ease."

Previously, on the 24th (local time), Hyundai Motor Group announced a plan for a 300 trillion won ($210 billion) investment in the U.S. The new investment plan includes expanding the finished vehicle production system and energy cooperation involving small modular reactors (SMR).

President Trump welcomed this by saying, "Hyundai does not need to pay tariffs to produce cars in the U.S.," adding, "This investment is a symbolic case demonstrating the efficiency of tariffs."

When concerns over tariffs are resolved, the first point to note is the joint purchasing by GM and Toyota, according to Research Institute Choi. He projected, "GM has started collaboration with Hyundai on commercial electric vehicles based on its electric vehicle platform, which will likely expand the benefits for Hyundai Mobis centered around the electric vehicle platform." He added that the relevant performance is expected to become visible in the first quarter of this year.

The increasing demand in the after-sales service (AS) sector and the high level of the won-dollar exchange rate are also positive factors. Research Institute Choi analyzed, "A favorable environment for AS demand is anticipated due to the slowdown in the U.S. economy," adding, "The effect of last July's logistics cost increase will be reflected from this quarter, but it may be offset by a decrease in the share of air logistics."

DS Investment Securities estimated that Hyundai Mobis's revenue for the first quarter of this year (January to March) will be 14.1 trillion won, and operating profit will be 809.2 billion won. These figures represent increases of 1.6% and 49.1%, respectively, compared to the same period last year.