KB Securities said on the 26th it would raise its target price for Hyundai Mobis by reflecting 14 trillion won in indirect equity value in Boston Dynamics. It maintained its "Buy" recommendation and set the target price at 750,000 won, up 50%. Hyundai Mobis' previous session closing price was 457,500 won.
KB Securities said the latest target price hike reflects, for the first time, the value of Hyundai Mobis' 10.9% indirect equity stake in Boston Dynamics.
It also said it made realistic its previously conservative assumption for the selling price of the Humanoid Robot Atlas and raised its 2030 operating profit estimate for Hyundai Mobis' actuators to 248.9 billion won.
Kang Seong-jin, an analyst at KB Securities, said, "In the mid to long term, if Boston Dynamics mass-produces 1.5 million units of Atlas in 2035, Hyundai Mobis' humanoid-related operating profit will reach 13 trillion won, about three times this year's operating profit of 3.8 trillion won."
KB Securities assumed Atlas will begin mass production and commercialization in 2030 at around $324,000 (450 million won) under a three-year service life condition.
Kang said, "Even accounting for operating and maintenance expenses on a 24-hour operation basis, it is sufficiently economical because it can replace annual labor costs of $52,000 (72 million won)." He added that, accordingly, the previously applied Atlas selling price assumption of $70,000 in Hyundai Mobis' valuation was excessively conservative.
KB Securities estimated Boston Dynamics' revenue in 2035 at $288.3 billion (404 trillion won). This is the result of multiplying a selling price of $191,000 for Atlas by 1.5 million units.
It also assumed that more than one-third of Boston Dynamics' revenue will be spent on purchasing actuators.
Kang said, "Assuming Hyundai Mobis' supply share is 80%, Hyundai Mobis' actuator revenue is estimated at 166 trillion won and operating profit at 13 trillion won," adding, "This figure clearly shows Hyundai Mobis' status as a core parts supplier for humanoid robots, especially physical artificial intelligence (AI)."