[Click e-Stock] "Iljin Hysolus Sees Recovery in Passenger Segment Thanks to Strong New Nexo Model Sales"

On December 24, Shinhan Investment Corp. maintained its 'Trading Buy' rating on Iljin Hysolus, stating, "Recovery in the passenger vehicle segment will drive overall revenue growth, but the company remains about 2% short of a clear return to profitability." The target price was revised downward from 18,000 won to 14,800 won.

On the same day, Choi Kyuhun, a researcher at Shinhan Investment Corp., commented, "Additional revenue growth drivers need to be activated." He added, "The domestic hydrogen bus market, which has reached an annual scale of over 1,000 units, is showing stable growth, and the previously sluggish hydrogen passenger car market has rebounded thanks to strong sales of the new Nexo model. For expectations of a turnaround to profitability to materialize, strong sales of both buses and passenger cars must continue into next year."

This year, Iljin Hysolus's revenue is projected to reach 100.7 billion won, up 27% year-on-year. Choi explained, "Revenue from the passenger vehicle segment is expected to surge 347.5% to 38.6 billion won, driving the company’s overall sales," and noted, "Since the launch of the next-generation Nexo model in June this year, more than 4,000 units have been sold through last month," expressing expectations for significant growth in the passenger segment.

The operating loss is expected to remain at 8.3 billion won. While the operating margin is projected to improve to -8.2% from last year's -12.0%, the total revenue is still considered low compared to the sales threshold of around 110 billion won needed to turn a profit.

Choi identified changes in the government's hydrogen vehicle budget allocations as a key point to watch going forward. He stated, "This year, the hydrogen passenger car budget covers 7,300 units and the hydrogen bus budget covers 2,000 units (1,190 low-floor and 810 high-floor buses). Next year, these figures have been adjusted to 6,000 passenger cars and 1,800 buses (800 low-floor and 1,000 high-floor buses)."

He added, "If strong sales continue through the first half of next year, there is a possibility of expanding the budget through a supplementary allocation. It is also a positive factor that Hyundai Motor Company is constructing a new hydrogen fuel cell plant within its Ulsan factory, targeting completion in 2027, with an annual production capacity of 30,000 units."