[Click e-Stock] "Hyundai Mobis to Reach 1 Trillion Won in Sales with Mass Production of 30,000 Robots... Target Price Raised"

Development of Robot Actuators
Reflecting Expectations for Sales Growth

On January 13, LS Securities raised its target price for Hyundai Mobis to 485,000 won, reflecting expectations for increased sales related to robotics.

Lee Byungkeun, a researcher at LS Securities, stated in a report released that day that the 'Buy' rating for Hyundai Mobis would be maintained, and that the target price earnings ratio (Target P/E) used for the target price calculation had been set at 10.0 times, the upper end of its historical band. This is based on the analysis that a full-scale re-rating of Hyundai Mobis's valuation will take place, driven by new business in robotics beyond its core automotive parts business.

Hyundai Mobis is currently developing actuators to be installed in 'Atlas,' the humanoid robot from Boston Dynamics, the robotics subsidiary of Hyundai Motor Group. Lee estimated, "From 2028, when mass production of Atlas is expected, sales related to robotics will expand in earnest," adding, "If 30,000 units are produced, Hyundai Mobis's actuator sales could reach approximately 1 trillion won." He projected that, ahead of full-scale mass production, the company's share price will rise as the value of its new businesses is reflected in advance.

For the fourth quarter of 2025, Hyundai Mobis is expected to post sales of 15.1 trillion won (up 2.5% year-on-year) and operating profit of 949.4 billion won (down 3.7% year-on-year, up 21.7% quarter-on-quarter), in line with market consensus. Although finished vehicle sales for the quarter-1.03 million units for Hyundai Motor Company and 760,000 units for Kia-showed a slight decline year-on-year and sales growth was somewhat stagnant, the seasonal effect of cost recovery is expected to enable the parts and module segment to achieve a profit.

In the after-sales service (A/S) segment, the impact of the previously imposed 25% tariff is expected to persist through the first quarter of this year, as inventory subject to the tariff is depleted over about six months. However, Lee predicted, "As early as after the first quarter of this year, A/S sales price increases are expected to begin, and from the second quarter, profitability improvement will accelerate."

Annual operating profit for this year is projected to reach 3.9 trillion won, a 14.3% increase compared to the previous year. The main factors for this improvement include alleviation of tariff burdens, an improved mix of high-value-added products, the effect of a strong US dollar, and increased volume. In particular, the continued strength of the US dollar is expected to help the A/S segment maintain a high operating profit margin (OPM) of around 25%, making a significant contribution to the company's overall profitability.