[Click eStock] "Hyundai Mobis Shows High Profitability in AS... Electrification Division Faces Challenges"

Hana Securities evaluated Hyundai Mobis's Q2 performance on the 29th, noting high profitability in the after-sales service (AS) sector but weakness in the electrification segment. The investment opinion 'Buy' and the target price of 280,000 KRW were maintained.

Song Seonjae, a researcher at Hana Securities, stated, "Q2 fell short of market expectations due to fixed cost burdens from decreased sales in the module segment and recurring quality costs. This marks the third consecutive quarter of underperformance against expectations." He analyzed, "Although growth in the electrification segment was weaker than expected due to a slowdown in electric vehicle demand, sales of core components increased mainly in high value-added product groups, and the AS sector showed strong growth and profitability driven by increased demand and price hikes."

Researcher Song added, "Overseas electrification hubs to be completed from the second half of the year will serve as mid- to long-term growth drivers." He forecasted, "While there will be cost increases in the short term, in the long term, this will lead to top-line growth followed by profitability improvement." He also noted, "The current stock price is valued at a forward 12-month price-to-earnings ratio (PER) below 6 times."