[THE INVESTOR] Hyundai Mobis’ operating profit will decline due to a decline in Hyundai Motor Group’s shipments, said KB Investment and Securities on Oct. 24 lowering the target price to 250,000 won (US$220.50) from 300,000 won.
Its revenue in the third quarter will fall 2.6 percent on-year to 8.5 trillion won and operating profit by 4.4 percent to 520.6 billion won, lower than market consensus. Hyundai Motor Group’s global shipments in the period slipped 1.8 percent on-year to 1.72 million cars. While the carmaker sold 1.79 million vehicles in the period, down 8,898 from the same period last year, the number of cars shipped fell by 44,586. The shipments will remain slow for the time being as it clears the inventory, said analyst Kang Seong-jin.
When Hyundai Motor Group completes inventory reshuffle and enters a new car cycle, the auto parts maker’s operating profit ratio will return to 7 percent from next year, said the analyst maintaining a “buy” recommendation.
By Hwang You-mee (email@example.com)