[This Week's Hot Stock] Hyundai Mobis Breaks Out of 'Auto Parts' Mold to Become a 'Robotics Powerhouse'

Reflecting the Value of New Businesses Like Robot Actuators
Solid Performance in Core A/S and Manufacturing Divisions

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Hyundai Mobis is shedding its image as a traditional internal combustion engine parts manufacturer and is poised for a dramatic transformation into a robotics specialist. With 'CES 2026,' the world's largest IT and consumer electronics exhibition held in Las Vegas this month, serving as a turning point, the group's robotics business roadmap is becoming tangible. Analysts are increasingly highlighting Hyundai Mobis as the heart of the group's 'Physical AI' initiative. The securities industry is collectively raising target prices and officially recognizing a re-rating of Hyundai Mobis's corporate value.

CES 2026: A Watershed for the Robotics Business Roadmap

In August last year, Hyundai Mobis announced its mid- to long-term plan for the robot actuator business through '2025 CID.' Since then, the group has unveiled plans for mass production of robots in the United States and investments in robotics in Korea, greatly enhancing business visibility. In fact, Hyundai Motor Group revealed its 'AI Robotics' strategy, focusing on human-robot collaboration, at CES 2026, held at the Mandalay Bay Convention Center in Las Vegas on January 5 (local time).

Hyundai Mobis plans to first enter the actuator market, a core component of robots, leveraging its own design technology and mass production capabilities. Actuators are drive devices that receive control signals and deliver physical power, accounting for over 60% of the component costs in humanoid robots.

Kang Sungjin, an analyst at KB Securities, estimated, "If Hyundai Motor Group achieves its initial production target of 30,000 humanoids per year, Hyundai Mobis could generate 122.1 billion won in operating profit. Should mass production reach 1 million units annually, operating profit could rise to 2.6 trillion won."

The competitiveness of Hyundai Mobis's robotics business stems from its accumulated expertise in design, mass production, and quality control from its automotive parts operations. Robot actuators are technologically very similar to automotive electronic power steering (EPS), brake, and chassis control systems. Hyundai Mobis's experience in meeting stringent automotive quality standards is expected to play a decisive role in the early stabilization of its robotics business.

Furthermore, Hyundai Motor Group's direct ownership of Boston Dynamics, a leading humanoid robotics company, presents a significant opportunity for Hyundai Mobis. Just as Tesla accelerates humanoid development as both supplier and consumer, Hyundai Mobis is also expected to expand its market share stably based on internal group demand. Additionally, autonomous driving AI technology developed through the software-defined vehicle (SDV) process can be commonly applied to robotics, giving Hyundai Mobis a structural advantage in R&D efficiency.

The Strength of Its Core Business: Performance Improvement and Robust Cash Generation

Alongside expectations for new businesses, the fundamentals of Hyundai Mobis's core automotive parts business remain very solid. According to FnGuide, Hyundai Mobis's consensus sales for last year averaged 61.5569 trillion won, a 7.5% increase year-on-year, with operating profit rising 10% to 3.3688 trillion won. This year's performance is expected to show even higher growth as results from the robotics actuator division are added.

The tariff issues that have hampered performance are also being resolved. The refund of U.S. parts tariffs began in earnest in the fourth quarter of last year, significantly improving profitability. With reduced tariff burdens and increased volume, the manufacturing division is expected to turn a profit for the year. The A/S division, Hyundai Mobis's reliable cash cow, continues to maintain an operating margin of over 20% thanks to global demand and favorable exchange rates, serving as a solid source of funds for the group's future investments.

In response to these changes, the securities industry is raising target prices for Hyundai Mobis. KB Securities named Hyundai Mobis its 'top pick' in the automotive sector and raised its target price to 500,000 won, reflecting the value of the robotics business at an expected 12-month price-earnings ratio (PER) of 11.1 times. Hanwha Investment & Securities and NH Investment & Securities also raised their target prices to 440,000 won and 470,000 won, respectively, emphasizing the ongoing valuation re-rating.

Haneul, an analyst at NH Investment & Securities, analyzed, "The robotics sector is a new growth engine for Hyundai Mobis, starting with entry into the actuator market and expanding into all areas, including sensors and controllers. It is important to note that automotive parts companies are being revalued in the market as they move into robotics."