KB Securities said on the 2nd that while competitors' market share is shrinking, Hyundai Motor Group's expanding share will drive a surge in demand for modules and parts, and after-sales service (AS) at Hyundai Mobis. It added that, based on this, Hyundai Mobis' appropriate market capitalization is 111 trillion won.
It maintained an investment opinion of "Buy" and raised the target price to 1.2 million won from 750,000 won. The previous trading day's closing price of Hyundai Mobis was 761,000 won.
Kang Seong-jin, an analyst at KB Securities, said, "While major automakers that failed to transition to eco-friendly vehicles are seeing their market share contract, Hyundai Motor Group, by adopting external autonomous driving artificial intelligence (AI) such as Alphamayo and through an autonomous vehicle foundry (contract manufacturing), is expected to quadruple its production market share outside China."
Accordingly, it projected that by 2035, Hyundai Mobis' operating profit in modules and parts will increase to 4.2 trillion won, and AS operating profit to 5.8 trillion won.
The growth of Hyundai Motor Group's robotics subsidiary Boston Dynamics is also cited as a positive.
Kang said, "Assuming Boston Dynamics' Humanoid Robot Atlas captures 60% of the industrial humanoid market, Hyundai Mobis will generate 14 trillion won in operating profit from the actuator (joint drive device) business in 2035."
KB Securities analyzed that Atlas' selling price will fall to $190,000 (about 280 million won) and have the same economics as a worker incurring 48 million won in labor costs. It also projected that if 1.5 million units of Atlas are sold (60% share of the industrial humanoid market) and 28% of the selling price is spent on purchasing actuators, Hyundai Mobis' potential actuator revenue would be 186 trillion won (119 trillion won from sales and 67 trillion won from AS).
Based on this analysis, it presented 111 trillion won as Hyundai Mobis' appropriate market capitalization.
Kang explained, "This is the result of adding 44 trillion won for the value of existing businesses, 14.7 trillion won for the indirect equity value in Boston Dynamics (indirect equity stake of 10.9%), and 52.7 trillion won for the effects of the actuator business and Hyundai Motor Group's volume increase."