NH Investment & Securities projected on the 4th that Hyundai Movex will continue its long-term growth by expanding new orders in the second half of the year. It maintained its investment opinion of 'buy' and raised its target price from 7,000 won to 7,700 won. The previous day's closing price of Hyundai Movex was 6,480 won.
Jung Yeon-seung, a researcher at NH Investment & Securities, said, 'Due to the orders in the second half of this year, the order backlog will increase, and based on this, we believe performance growth will be possible until 2027,' adding, 'Orders related to energy storage systems (ESS), cosmetics, and home appliances for domestic corporations are expected.' He projected an order amount of 150 billion won by the first half of this year and over 250 billion won in the second half.
Considering the order backlog of 421.5 billion won in the first half and new orders in the second half, it is estimated that there will be growth in size along with improvement in profitability until 2027. Jung noted, 'As the proportion of revenue from maintenance, which is highly profitable, increases, the operating profit margin is expected to rise in the long term.'
Experience in receiving orders across various industries is also cited as a positive factor. Jung said, 'While the global logistics automation market is expected to grow by an average of 10-15% annually, Hyundai Movex's growth rate will surpass this,' adding, 'This is because, unlike domestic competitors that receive orders focused on specific industries under affiliated companies, Hyundai Movex has a wide range of projects across various industries such as distribution, food and beverage, and tires since the past.'