[Click eStock] Daishin: "Hyundai Mobis, Beneficiary Stock of Eco-Friendly Vehicle Parts"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 25th that it has set the target price for Hyundai Mobis at 420,000 KRW, as the sales of electric vehicles by Hyundai Motor and Kia Motors are rapidly increasing and the proportion of electrification sales continues to rise.

Hyundai Mobis recorded sales and operating profit of 10.7 trillion KRW and 702.3 billion KRW respectively in the fourth quarter of last year, representing increases of 3% and 11% compared to the previous year. Core parts (2.2 trillion KRW) and general modules (5.4 trillion KRW) each decreased by 1%, but the electrification segment saw sales rise by 47% to 1.3 trillion KRW due to increased sales of battery electric vehicles (BEV) by Hyundai Motor and Kia Motors.

Operating profit for this year is expected to reach 2.9 trillion KRW. With recovery from COVID-19, an increase in finished vehicle sales is expected to boost sales and profits. Hyundai Motor Group's next-generation electric vehicle dedicated platform, the 'E-GMP platform'-based electric vehicles entering full-scale production will lead to an increase in shared parts and a reduction in design costs, improving the cost structure and resulting in high profitability.

Lee Seung-hwan, an analyst at Daishin Securities, explained, "Hyundai Mobis holds a balanced business portfolio related to the future MECA (Mobility, Electric, Connected, Autonomous) industry, and through the development of next-generation vehicle-to-external communication control technology, it is expected that software roles will expand, including the future implementation of OTA functions."