DB Securities on the 6th said Hyundai Mobis is more than a simple auto parts maker and assessed it as a core hardware platform company that implements manufacturing artificial intelligence (AI).
Based on control technology accumulated through global mass production, it is expected to secure both automotive and robot hardware and drive a mid- to long-term rise in corporate value. It maintained a Buy rating and raised the target price to 650,000 won from 560,000 won. The previous session's closing price was 494,000 won.
Nam Jusin, a DB Securities researcher, said, "Manufacturing AI is technology in which AI runs factories on its own, but to actually improve productivity, physical hardware (Physical H/W) such as actuators, sensors and control systems is essential," and added, "Hyundai Mobis is supplying key future car parts such as electrification, braking/steering, lamps and ADAS, while recently expanding into the robot space by developing actuators and robot drive systems for Boston Dynamics."
Nam said a U.S. field trip confirmed that the competitiveness of manufacturing AI is realized not simply in AI models but in hardware that actually moves factories.
Nam said, "Hyundai Mobis is one of Korea's largest manufacturing platform companies that has simultaneously secured automotive and robot hardware based on control technology and mass-production capability accumulated in automotive mass production."
In particular, Hyundai Mobis is developing actuators for Boston Dynamics' Humanoid Robot "Atlas" based on control technology rooted in automotive EPS (electric power steering) and MDPS. Nam said direct benefits are expected as robot hardware supply expands going forward.
DB Securities projected Hyundai Mobis' consolidated revenue for next year at 69.431 trillion won and operating profit at 4.062 trillion won (operating margin 5.9%). It said normalization in manufacturing and steady profit generation in the after-service (A/S) business will continue. It also estimated this year's full-year results at 65.236 trillion won in revenue and 3 trillion won in operating profit, saying the growth trend will continue.
Nam said, "If Boston Dynamics scales up mass production and Hyundai Motor and Kia are joined by non-captive robot parts customers beyond the group, an additional rerating of corporate value could be possible."