DAOL Investment & Securities noted that Hyundai Mobis's performance in the first quarter of this year is disappointing, but the potential for the stock price to rise is sufficient. The target price has been lowered from 400,000 won to 380,000 won, while the investment opinion remains "buy."
Yoo Ji-woong, a researcher at DAOL Investment & Securities, said, "Considering that various momentum is expected, there is still a high potential for stock price increases," and analyzed that "the second quarter is expected to be a period when new orders become visible, igniting a rebound in the stock price."
Hyundai Mobis's revenue for the first quarter of this year was provisionally recorded at 14.8 trillion won, with an operating profit of 776.7 billion won. This reflects an increase of 6.4% and 43%, respectively, compared to the same period last year. Although the operating profit slightly fell short of market expectations (consensus), it showed a high growth rate.
Hyundai Mobis is expected to see an improvement in the profitability of its electrification business as the operating rate of its U.S. electrification plants increases starting in the second half of the year. Additionally, starting in the second quarter, the seasonal peak and adjustments in the finished vehicle market are expected to make performance improvements significant.
Yoo noted, "Hyundai Mobis has previously mentioned that improving profitability through business restructuring is the top priority from a mid- to long-term perspective," and "recommended a buying strategy aimed at the second quarter performance."