[Click e-Stock] "Hyundai Movex: Structural Growth in Logistics Automation and Shareholder Returns"

Target Price Set at 7,000 KRW

On July 4, NH Investment & Securities stated that Hyundai Movex's logistics warehouse automation business has entered a period of structural growth, and strong earnings growth is expected through next year. The firm maintained a 'Buy' investment rating and set a target price of 7,000 KRW.

Jung Yeonseung, a researcher at NH Investment & Securities, explained, "The demand for automated logistics warehouses is increasing as domestic companies in sectors such as food and beverage and cosmetics respond to export markets. In addition, unmanned conversions of aging logistics warehouses are underway in collaboration with domestic electronics manufacturers." He added, "The government has also introduced the 'Smart Logistics Center Certification System,' supporting warehouse upgrades in terms of safety, efficiency, and eco-friendliness." Jung further noted, "Hyundai Movex is a company capable of supplying both robots and logistics modules required for logistics automation. As of the end of the first quarter, the company's logistics automation order backlog amounted to 429.1 billion KRW, securing more than a year's worth of work."

Sales in the logistics automation segment are projected to grow by more than 20% annually through next year. Jung assessed, "The company has built a track record in a variety of industries, including secondary batteries, e-commerce, tires, and food and beverage, and earnings growth is assured through 2026."

The shareholder return policy is also cited as a differentiating factor. Last year, the company paid a cash dividend of 50 KRW per share and decided to repurchase and cancel 6.59 million shares, amounting to 25 billion KRW. Jung explained, "With no debt and steady earnings growth expected, the company's cash assets are also projected to increase. Accordingly, shareholder return policies such as dividends and share buybacks are likely to continue."