Hyundai Wia, an engine and parts manufacturer affiliated with Hyundai Motor Group, is expected to recover its performance this year as sales increase at its Shandong, China and Russia subsidiaries.
On the 20th, Lee Byung-geun, a researcher at Ebest Investment & Securities, stated in a report, "The growth of the engine sector, which accounts for the largest portion of automobiles, will be the key to this year's performance," and predicted, "Engine sales will reach a level similar to last year as sales increase at the Shandong and Russia subsidiaries." The researcher added, "The Shandong and Russia subsidiaries have minimized line operation rates," and forecasted, "With improved operation rates, they could reach the break-even point (BEP) this year." He also expressed expectations that "the machinery sector will gradually contribute to this year's performance."
He said, "In the defense sector, additional orders for the remaining quantities of the second contract in Poland are scheduled this year," estimating that "the defense sector is expected to see a 50% increase in sales compared to last year." Furthermore, he noted, "The KRW 150 billion order received from the ‘Hyundai Motor Group Metaplant America (HMGMA)’ project currently under construction in the United States will be steadily recognized as sales over five quarters starting from the third quarter of last year," and predicted, "Using Hyundai Motor Group's captive sales as a foothold, orders from non-affiliated companies will also expand."
Based on these prospects, Ebest Securities newly issued a ‘Buy’ investment opinion on Hyundai Wia with a target price of KRW 77,000.
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