[Click e-Stock] "Hyundai Elevator Expected to See Improved Subsidiary Performance"

On September 22, Research Alarm analyzed that the performance of Hyundai Elevator's subsidiaries, including Hyundai Movex and Hyundai Asan, is improving. Along with a 'positive' stock outlook for Hyundai Elevator, the firm suggested a fair stock price of 123,000 won.

Choi Sunghwan, a researcher at Research Alarm, introduced, "Hyundai Movex, a subsidiary, is responsible for the group's new growth engine by providing logistics automation and IT services, such as building smart logistics centers, automation sorting facilities, and simulation based on digital twins."

He added, "Recently, as fulfillment competition among large retail and e-commerce companies has intensified, demand for automation facilities that can improve efficiency and speed is surging," and explained, "This is driving Hyundai Movex's order expansion and revenue growth."

He emphasized, "As of the first half of this year, Hyundai Movex's export ratio stands at about 58%, with steady demand growth in emerging markets such as China, the Middle East, and Southeast Asia."

Researcher Choi analyzed, "Hyundai Asan was the only private operator that led the Mount Kumgang tourism and Kaesong Industrial Complex projects in the past," and added, "As the government is pursuing a conciliatory policy toward North Korea, Hyundai Asan could secure a monopoly position if inter-Korean economic cooperation resumes."

He explained, "The fact that Hyundai Asan can utilize the infrastructure, operational networks, and know-how accumulated during its North Korea-related projects is a competitive edge that new entrants cannot easily replicate," and added, "This is why Hyundai Asan is considered the primary beneficiary in the event of improved inter-Korean relations."

It is estimated that Hyundai Elevator will achieve sales of 2.6 trillion won and operating profit of 234.9 billion won this year. Compared to last year, sales are expected to decrease by 9.5%, while operating profit is expected to increase by 4.1%.