Electrification Boom: Hyundai Mobis Sees Bright Future Ahead with 100-Year-Old Partner

Hyundai Mobis Expected to Show Stable Profitability in After-Sales Service Sector

IBK Investment & Securities has rated Hyundai‍ Mobis, ⁤predicting‍ stable profitability in the after-sales service (A/S)⁣ sector and sales growth in the electrification⁢ sector ⁤in‍ the future. The target stock price has been set ​at 300,000, with a ‘Buy’ investment opinion.

This year, Hyundai Mobis is expected to show sales of KRW 57.614 trillion, down⁢ 2.8% from the previous year, and operating profit of KRW 2.556 trillion, up 11.3%. Sales by⁢ sector are expected to be KRW 45.781 trillion for modules and ⁢components (-5.4% over the previous year) and KRW 11.833 trillion for A/S (+8.7%), respectively.

Stable Sales and Profits Related to Electrification and After-Sales Service

According to Lee Hyun-wook,⁣ a researcher at IBK Investment⁤ and Securities, “The investment points are stable sales and profits related to electrification, non-captive orders, and after-sales‍ service.”

Researcher Lee explained‍ that while electrification-related sales are expected ​to be negative ⁣in the short term due⁣ to the decline in global electric vehicle demand, the ban on internal combustion engine vehicles and the megatrend for carbon ⁣neutrality are expected to drive sales growth⁣ related to electrification in the future.

Module and ⁣Component Sales to Show Negative Growth

However, researcher Lee ‍noted that module and component ‌sales will show negative growth compared to⁣ the previous year. This is due to the ‌conversion of finished cars in the electrification sector from​ direct purchases​ at the company level, which affects the accounting process.

A/S Division to Remain Cash ‌Cow

The ⁤A/S division is expected ⁤to remain the company’s‌ cash⁣ cow ‌due⁢ to the growing global operations of⁢ Hyundai Motors and Kia. The operating profit margin​ is expected to be 24.7%.