[Market Focus] Hyundai Movex Expected to Achieve Fastest Order Growth

Hyundai Movex is showing strong performance.

As of 9:17 a.m. on September 2, Hyundai Movex was trading at 5,560 won, up 19.44% from the previous trading day.

Choi Seunghwan, a researcher at Shinhan Investment & Securities, explained, "Among the 19 companies in the domestic robotics sector in the second quarter of this year, only five saw revenue growth," adding, "Revenue increased only in the fields of humanoids, precision actuators, and logistics automation."

He continued, "Sales of collaborative robots and industrial robots plummeted," and added, "Stock prices of robotics companies are inevitably expected to diverge for the time being."

He emphasized, "Selection and concentration are necessary," and advised, "We should focus on companies in the parts value chain for humanoids and intelligent robots, those that have received equity investments from large corporations, and companies achieving visible revenue growth in specialized areas such as logistics."

In the second quarter of this year, Hyundai Movex recorded revenue of 98.9 billion won and operating profit of 4.5 billion won. Compared to the same period last year, revenue increased by 36.1%, while operating profit decreased by 8.2%. Researcher Choi explained, "The company achieved high revenue growth based on its secured order backlog," and added, "However, profit declined due to a drop in exchange rates and rising outsourcing costs." He further emphasized, "Currently, Hyundai Movex is bidding on multiple orders, each worth over 50 billion won, including North American ESS battery packs, domestic manufacturing conglomerates, F&B, K-beauty, K-apparel, domestic distribution companies, and tire companies," and predicted, "Order results are expected to be revealed in the second half of this year."

He forecast, "Hyundai Movex is expected to achieve the fastest order growth among domestic and overseas peers in the coming years," and added, "New order trends will explain the stock price better than performance based on existing orders."