[Click eStock] "Hyundai Mobis, Last Year's Q4 Earnings Surprise... Target Price Up"

Hana Securities analyzed on the 31st that Hyundai Mobis recorded a performance surprise in the fourth quarter of last year and raised the target price from 300,000 KRW to 310,000 KRW. The investment rating was maintained as 'Buy.'

Hyundai Mobis posted sales of 14.7107 trillion KRW and an operating profit of 986.1 billion KRW in the fourth quarter of last year, representing increases of 0.3% and 88.5%, respectively, compared to the same period the previous year.

Song Seonjae, a researcher at Hana Securities, said, "The overall operating profit margin was 6.7%, with the module and AS segments recording 1.5% and 26.0%, respectively. Despite volume declines, quality costs (64 billion KRW), and costs from the U.S. electrification plant (60 billion KRW), the module segment showed improvements in mix (70 billion KRW), cost recovery, and cost reduction activities (240 billion KRW), resulting in profit improvement." He added, "The AS segment maintained high profitability of 26.0%, supported by strong top-line growth and favorable exchange rate effects."

Hyundai Mobis's order amount for 2024 stood at 2.57 billion USD, which is about 27% of the annual target of 9.335 billion USD. This is due to delays in electric vehicle projects by clients amid slowing EV demand and global policy uncertainties. The order amount target for this year is 7.44 billion USD.

He emphasized, "The target amount for electrification parts is 2.41 billion USD. The goal is to continue the profitability turnaround in the module and core parts segments into 2025. Although volume, exchange rates, and increased research and development (R&D) expenses may have negative impacts, improvements in mix and cost reductions are expected to lead to profitability improvements on an annual basis."