Kiwoom Securities said on the 13th that, unlike during the Apple Car phase, all three of Hyundai Motor Group's physical artificial intelligence (AI) new businesses have entered the concrete phase. It maintained a Buy rating and raised the target price to 450,000 won from 340,000 won. The previous trading day's closing price for Hyundai Motor was 367,000 won.
Shin Yun-cheol of Kiwoom Securities said, "Unlike the Apple Car, Hyundai Motor Group's three physical AI new businesses—Robotics, robotaxi, and software-defined factory (SDF)—have all begun to crystallize in terms of business direction and partnerships," and added, "In particular, as the partnership with the big tech company Nvidia expands, expectations will rise for progress in Hyundai Motor Group's Autonomous Driving project, whose commercialization has been delayed for a long time."
Kiwoom Securities noted that in January 2021, during Apple Car hype, Hyundai Motor's price-earnings ratio (PER) rose to as high as 16 times, but the lack of an officialized partnership with big tech meant it ended as a one-off event. Based on the previous day's close, the current 12-month forward PER is about 8.3 times, which it analyzed as a similar level to the Apple Car rally period.
Shin said, "From the P (price), Q (volume), and C (cost) perspective, the strength of the earnings turnaround is intensifying," and explained, "As Hyundai Motor Group's leadership in physical AI new businesses becomes full-fledged, this is a phase where it can justify a premium as a sector leader."
He added, "Although the 12-month forward PER has risen to the low 8 times, considering the phase of new business concretization and the expansion of big tech partnerships, applying a target PER of 10 times is possible."