[Click eStock] "Hyundai Mobis, Successful Cost Control... Investment Opinion & Target Price Up"

Kiwoom Securities has upgraded its investment opinion on Hyundai Mobis from ‘Outperform’ to ‘Buy’. The target price has also been significantly raised from 265,000 KRW to 330,000 KRW. This reflects an assessment that the company demonstrated profitability exceeding market expectations through successful cost control.

Hyundai Mobis

Shin Yoon-chul, an analyst at Kiwoom Securities, stated, "Hyundai Mobis achieved an operating profit of 908.6 billion KRW in the third quarter of this year, far surpassing the market estimate of 657.6 billion KRW," and analyzed, "The increase in average selling price (ASP) of parts and the reversal of previously accumulated allowance for doubtful accounts led to a significant profit increase."

The analyst particularly noted, "With the continued increase in demand for A/S parts, the quarterly sales of the A/S business division surpassed 3 trillion KRW for the first time ever," and added, "Efforts to control both fixed and variable costs, such as managing R&D personnel and limiting air freight usage, also contributed to improved profitability."

He forecasted, "Hyundai Mobis will continue efforts to reasonably reverse provision liabilities," and "There is a high possibility that subsidies from the U.S. subsidiary will begin to be fully reflected in profit and loss, leading to an upward revision of next year’s earnings forecast." He further added, "At this year’s CEO Investor Day, there is a high likelihood of proposals to expand shareholder returns, which will also serve as an attractive investment point."