Sangsangin Securities analyzed on the 25th that Woosoo AMS is a parts company fully prepared for both the short and long term at a time when the paradigm of the automobile market is changing. No investment opinion or target price was presented.
Woosoo AMS is a company that manufactures and sells automotive parts. Last year, it recorded sales of 348 billion KRW and an operating profit of 8.4 billion KRW. Compared to the same period last year, sales decreased by 2.4%, while operating profit increased by 399%.
Junho Lee, a researcher at Sangsangin Securities, said, "Woosoo AMS is judged to be a parts company fully prepared for both the short and long term at the current time when the paradigm of the automobile market is changing," adding, "Woosoo AMS's transmission parts are applicable even if there is a shift to Battery Electric Vehicles (BEV) and Fuel Cell Electric Vehicles (FCEV) in the future."
He continued, "Thanks to the advantage of being applicable to all vehicle types, approximately 490 billion KRW worth of new orders for parts were received last year."
Along with this, he expected product mix improvement due to the growth of Hybrid Electric Vehicles (HEV). He said, "Hyundai Motor Group announced production plans for 480,000 HEVs and 350,000 BEVs in 2024, respectively," adding, "This represents a 33% increase in HEV and a 9% increase in BEV compared to the previous year."
He explained, "Due to the easing of environmental regulations in the US and Europe, HEVs are expected to continue growing in 2025," adding, "The introduction of EURO7 has been postponed from 2025 to 2030, and the clause requiring nitrogen oxide emissions to be reduced from 80mg/km to 60mg/km was finally deleted." He further added, "This has laid the groundwork for an inevitable increase in HEV sales."
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