[Click eStock] "SNT Motiv, Limited Impact from U.S. Tariffs"

On April 29, Daishin Securities maintained its "Buy" investment rating and a target price of 33,000 won for SNT Motiv, citing the company's limited exposure to U.S. tariffs and growth momentum in its defense segment.

SNT Motiv's business areas are divided into the vehicle parts business and other businesses.

The vehicle parts business focuses on core components for drive motors, which are the main power sources for eco-friendly vehicles such as electric vehicles and hydrogen fuel cell vehicles. It also produces hybrid starter generators (HSG) for hybrid vehicles and drive units for electric vehicles, solidifying its position as an "eco-friendly parts supplier" in the global auto parts market.

The other segment is divided into defense and semiconductor equipment parts. In the defense business, the company has supplied the K2C1 rifle to the military, and future revenue growth is expected from projects such as the 5.56mm next-generation light machine gun and the 7.62mm Machine Gun-II. For semiconductor equipment parts, the SCMC division is expected to continue its growth trajectory, supported by ongoing investment from semiconductor manufacturers.

Recently, there were concerns about the potential withdrawal of GM Korea due to tariffs imposed by the Trump administration in the United States. Daishin Securities analyzed that since GM Korea's main production models are small and compact SUVs, local production in the U.S. would be difficult. Even if production were to shift locally, SNT Motiv, which already has a track record as a supplier, would likely be able to maintain its supply volumes.

Analyst Kim Guyoun stated, "The exposure to U.S. tariffs within the domestic auto parts sector is estimated at 2 to 3 billion won annually, which is relatively low. Considering the growth momentum in the defense segment in Europe and the Middle East, SNT Motiv is expected to remain an attractive and stable investment option within the sector."