Hyundai AutoEver Accelerates Riding the Digital New Deal Wave

[Asia Economy Reporter Eunmo Koo] Hyundai AutoEver's stock price has shown a strong rise of nearly 50% since the beginning of this month. Expectations for the government's Digital New Deal policy appear to be influencing this trend.

According to the Korea Exchange on the 29th, Hyundai AutoEver's stock price closed at a 52-week high of 62,500 KRW, up 10.23% (5,800 KRW) from the previous trading day. The stock price surged more than 10% just the day before, recording a 47.8% return so far this month. This is in contrast to the KOSPI, which has experienced some adjustment and is slightly down (-0.8%) this month.

The recent rise in Hyundai AutoEver's stock price is interpreted as being influenced by expectations of benefits from the Digital New Deal plan. In particular, the next-generation Intelligent Transport System (C-ITS) project is attracting attention. For the commercialization of autonomous vehicles in the future, expanding road infrastructure that shares real-time traffic information between vehicles is essential. Hyundai AutoEver possesses Internet of Things (IoT) technology on both the vehicle and road sides, so if related projects accelerate, it could be a direct beneficiary.

Currently, the Ministry of Land, Infrastructure and Transport has allocated a budget of 578.5 billion KRW for building advanced road traffic systems. The C-ITS project, which refers to two-way communication between vehicles and roads, underwent a demonstration project in Gwangju in February and is preparing for a demonstration project bidding in Sejong City this November, with plans to start the main project next year.

Lee Jung-ki, a researcher at Hana Financial Investment, said, "Hyundai AutoEver, through its affiliates Hyundai Motor Company and Hyundai Construction, not only builds connected car service platforms but also holds references for C-ITS demonstration projects." He added, "They have secured about 30% of the current C-ITS demonstration project orders, and this market share is expected to be maintained when the main project begins next year. As the expansion of autonomous vehicle infrastructure accelerates and the market size grows, the benefits will increase."

The visible growth of data hub platforms capable of collecting, storing, and processing big data is also a positive factor. Among the Digital New Deal policies, one of the projects receiving the most financial investment is the Data Dam. The Data Dam involves processing and aggregating data from public and private sectors for use, and building a Data Dam requires a data hub. A data hub is a data-centric platform that integrates, processes, and systematically manages various data to create necessary information.

Hyundai AutoEver has recently developed and is testing a data hub platform. It is scheduled to be launched in the first half of next year and will be utilized by clients in the future. Lee Sang-heon, a researcher at Hi Investment & Securities, explained, "The data hub will also serve as a data repository that accumulates and utilizes external data." He added, "Once the data repository is established, Hyundai AutoEver will be able to participate in the government-led Data Voucher project, providing automotive driving data to group companies and partners." The Data Voucher project recruits supply companies that sell and process data.