April 26, 2024

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[THE INVESTOR] Hyundai Motor Group’s recently announced governance restructuring plan may be unfavorable to Hyundai Mobis, said Eugene Investment and Securities on March 29. 

As per the plan, Hyundai Mobis’ module and parts business will be spun off and merged with Hyundai Glovis.

When the scheme goes as planned, the total market value of Hyundai Mobis will decline 18.4 percent to 30 trillion won, said analyst Lee Jae-il.

 
Lee, however, noted that the agenda might not even be passed at Hyundai Mobis' shareholders meeting as the firm's AS division is highly profitable with a 25 percent operating profit ratio and an average annual growth rate of 4.5 percent. 

On the other hand, the plans could boost Hyundai Glovis’ stock price by up to 30 percent to 225,000 won, with its total market value reaching 22 trillion won.

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