KB Securities said on the 21st that Boston Dynamics (BD), a subsidiary of Hyundai Motor, will drive a productivity revolution. It raised its target price to 800,000 won from 310,000 won. Hyundai Motor's closing price in the previous session was 479,000 won.
Kang Seong-jin, an analyst at KB Securities, valued BD at 128 trillion won. With the working-age population in OECD countries and China expected to decrease by 110 million over the next 10 years, the analysis said 9.6 million Humanoid Robot units per year will be needed by 2035 to replace them. If BD produces 15.6% of that, 2035 revenue would reach 404 trillion won and operating profit would reach 62 trillion won, the estimate said.
Kang said, "If we reflect a 35 trillion won value for Boston Dynamics' indirect equity, 69 trillion won for the legacy auto business, and 60 trillion won for the expansion value of an Autonomous Driving foundry business leveraging humanoids, Hyundai Motor's fair market capitalization is 164 trillion won," presenting the basis for the 800,000 won target price.
He also emphasized Hyundai Motor's own productivity gains from adopting humanoids. Kang said, "One Humanoid Robot can secure three times the productivity of a person under a three-shift system," adding, "If Hyundai Motor introduces 33,000 units annually and operates a total of 100,000 units, production capacity will expand to four times the current level." Accordingly, he projected Hyundai Motor's operating profit would increase from 11.7 trillion won in 2030 to 24.5 trillion won in 2036, more than doubling.
In addition, Kang projected a two-top structure between Hyundai Motor Group and Tesla in the physical AI market. He said, "Only Hyundai Motor Group and Tesla are corporations that simultaneously possess an AI brain through collaboration with Google Gemini Robotics, massive factory data, and a fast decision-making structure and mass-production capabilities," evaluating that "Hyundai Motor's mid- to long-term market capitalization could reach as high as 229 trillion won."