[Featured Stock] Hyundai Wia Soars Over 4% on News of Machinery Division Sale

Reflecting Expectations for Strengthening Core Component Competitiveness

Hyundai Wia is showing strong performance on the 19th. It is interpreted that buying demand surged due to growth expectations following the sale of the machinery division.

As of 10:19 AM on the day, Hyundai Wia's stock price is recorded at 49,250 KRW, up 4.79% compared to the previous trading day.

The day before, Hyundai Wia announced that it would sell its stake in Wia Machine Tool for 340 billion KRW. The existing machine tool division will be spun off to establish Wia Machine Tool, and then the stake will be sold to the SMEC-PE consortium. The proceeds from the sale are planned to be invested in automotive thermal management research and development, as well as in India, Europe, and constant velocity joints (CVJ).

On the same day, Kim Gwi-yeon, a researcher at Daishin Securities, commented, “The machinery division has had limited synergy within the group and low earnings visibility, which has acted as a valuation discount factor for a long time.” He evaluated, “This sale is a strategic decision to strengthen core component competitiveness and enhance corporate value.” He added, “Although earnings volatility is expected to increase in the first half of this year, it is necessary to focus on mid- to long-term growth visibility.”