[Click eStock] Hyundai Wia, Now a Future Car Beneficiary... Full-Scale Launch of Thermal Management Business

Hyundai Motor E-GMP 3rd Batch Drive Component Thermal Management System Order
Expected Expansion to Integrated Thermal Management System by Improving Tesla Technology
Revenue Starts in 2023... 1 Trillion KRW Expected by 2027

[Asia Economy Reporter Minwoo Lee] Hyundai Wia has secured the first contract for the drive component thermal management system for electric vehicles that Hyundai Motor will launch starting in 2023. Analysts expect that by actively entering the thermal management business, Hyundai Wia will establish itself as a beneficiary stock in the future car market.

On the 19th, Korea Investment & Securities maintained a 'Buy' rating and a target price of 110,000 KRW for Hyundai Wia based on this background. The closing price the previous day was 83,900 KRW.

Recently, Hyundai Wia has officially entered the thermal management business through securing the third batch of Hyundai Motor's electric vehicle platform E-GMP. Hyundai Wia has won the first contract for the drive component thermal management system for electric vehicles (E-GMP 3rd batch) launching from 2023. The company independently developed thermal management systems for drive electronic components (motor, inverter) and batteries, which is expected to improve efficiency and extend lifespan. Additionally, by integrating functions, the number of parts can be reduced compared to existing products, and costs are expected to be lowered. Hyundai Wia is effectively improving a technology first introduced globally by Tesla.

Technology targeting electric vehicles launching after 2024 is also under advanced development. The bidding for this is expected to take place in the first half of next year. From 2026, the business scope will expand to an Integrated Thermal Management System (ITMS) combining drive component thermal management and interior air conditioning. The mid-to-long-term goal is to secure 50% of the group's eco-friendly vehicle thermal management and air conditioning volume. Jinwoo Kim, a researcher at Korea Investment & Securities, explained, "We will continue related investments and outsource some production," adding, "While cooperating with existing thermal management parts mass producers, we also plan to discover additional partners."

Previously, Hyundai Wia officially announced its entry into the thermal management system business in October 2019. The market had been skeptical about this, but the expectation for the thermal management business has been materializing with the E-GMP 3rd batch bidding at the end of last year. The volume is fluid but expected to be higher than the E-GMP 2nd batch. The vehicle models are anticipated to be large SUVs for Hyundai and Kia.

Thermal management is broadly divided into drive components and interior air conditioning, and the contract Hyundai Wia secured this time is for drive component thermal management. It is expected to expand to interior air conditioning in the future. From 2026, technology referencing and improving Tesla's integrated thermal management module, known as the 'Super Bottle,' is expected to be applied. Methods such as integrating heat exchangers, valves, and coolant pumps are anticipated. It involves storing and controlling coolant and refrigerant together.

Sales are estimated to begin from 2023. Sales are expected to grow significantly starting in 2026 when the integrated thermal management system is applied. Related sales are projected to gradually increase to 40 billion KRW in 2023, 240 billion KRW in 2025, and 1 trillion KRW in 2027. Researcher Kim noted, "Attention should be paid to the superior profitability and growth potential compared to existing businesses," and predicted, "Companies included as partners, such as Woori Industry (thermal management parts) and GMB Korea (electric water pumps), will also benefit."