April 19, 2024

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[THE INVESTOR] Hyundai Mobis will gain quite significantly as Hyundai Motor Group’s shipments from China increases, said KB Investment and Securities on Jan. 23, maintaining a “buy” recommendation and raising the target price to 340,000 won (US$318.20) from 300,000 won.

The automobile group’s shipments from its Chinese factory this year will hike 23.1 percent from 2017, propelling the demand for Hyundai Mobis’ parts and modules, forecast analyst Kang Seong-jin. The fact that it is relatively free from the burden of marketing costs compared to finished carmakers also is a positive, added the analyst. 

The company’s revenue in the fourth quarter last year is estimated to have fallen 13.1 percent to 8.9 trillion won, and operating profit by 21.9 percent to 531.3 billion won, fairly lower than market consensus, noted Kang. This year revenue will rise 8.7 percent on-year to 38.3 trillion won and operating profit by 18.4 percent to 2.6 trillion won, according to the analyst.

The possibility of higher dividends following the governance structure reshuffle of Hyundai Motor Group, also is a pro, he added.

By Hwang You-mee (glamazon@heraldcorp.com)