[Click eStock] "SNT Motive, Securing New Orders by Year-End Is Key"

NH Investment & Securities analyzed on the 28th that additional orders are necessary to ensure mid- to long-term growth confidence in the electrification business of SNT Motive. The investment opinion HOLD and the target price of 55,000 KRW were maintained.

SNT Motive recorded sales of 289 billion KRW and an operating profit of 28.5 billion KRW in the second quarter, representing increases of 32.0% and 38.9%, respectively, compared to the same period last year. So Suhong, a researcher at NH Investment & Securities, said, "Pre-tax profit was favorable," adding, "Although the foreign exchange translation gains decreased compared to the previous quarter, this was due to the exchange rate rising at the end of the quarter."

He analyzed that additional orders are necessary to confirm SNT Motive's growth trend. GM plans to discontinue the Bolt (EV) by the end of the year. He stated, "DU sales currently account for about 10% of SNT Motive's annual sales," and added, "From next year, SNT Motive plans to offset the decrease in DU sales with the expansion of Hyundai Motor Group's electrification business, increased sales in the defense sector, and diversification of engine parts customers."

He explained, "To achieve substantial earnings growth and stock price increase, it is necessary to confirm additional new orders to enhance the mid- to long-term growth reliability of the electrification business," and "It is expected that around the end of the year, suppliers for parts for Hyundai Motor Group's next-generation electric vehicle dedicated platform, scheduled to be launched after 2025, will be selected."