[Edaily Reporter Shin Ha-yeon ] On the 10th, EUGENE INVESTMENT & SECURITIES projected that HyundaiMobis(012330)’s second-quarter earnings would meet market expectations, while forecasting that the recovery in the electrification sector and the impact of new vehicle launches would gain momentum in the second half of the year. While maintaining its “Buy (BUY)” investment rating, the firm lowered its target price by 18.7% from 910,000 won to 740,000 won to reflect the decline in valuations of related stocks, such as HyundaiMotor.

Lee Jae-il, an analyst at EUGENE INVESTMENT & SECURITIES, stated, “The company’s second-quarter earnings are projected to generally align with the consensus, with revenue of 16.8 trillion won, operating profit of 871 billion won, and net income of 1 trillion won,” adding, “Although the automotive parts division is expected to underperform, the after-sales service (A/S) division is projected to maintain its record-high profit margins in the second quarter as well.”

The analyst noted, “The Aftermarket division is experiencing sustained structural growth as the non-OEM aftermarket shrinks and the OEM market expands in the U.S., while maintaining high profitability due to the won-dollar exchange rate effect,” adding, “Profitability improvements in the Parts & Modules division are being delayed in the second quarter, following the first quarter.” He further explained, “The electrification division continues to struggle due to the contraction of the U.S. electric vehicle market, and rising raw material prices, along with some production disruptions in South Korea and India, are also having a negative impact.”

However, he forecast that earnings improvement would gain momentum in the second half of the year. The analyst noted, “We expect the electrification segment to improve in the second half, as the mass production of hybrid models at North American plants begins to take full effect, the Ioniq 3 launches in Europe, and new sales to Volkswagen materialize,” adding, “Production disruptions in South Korea and India are expected to be only temporary.”

He continued, “HyundaiMotor, which saw a lackluster lineup of new vehicle launches in the first half, is scheduled to launch new models such as the Ioniq 3, Avante, and Tucson in the second half,” adding, “The supply of parts for new EV models to European manufacturers is also expected to see a gradual increase in capacity utilization, contributing to improved profitability in the electrification segment.” He added, “Unlike the first half, when the parts division struggled overall, the second half is expected to see balanced growth across the automotive parts and after-sales service divisions.”

The robotics business was also identified as a medium- to long-term growth driver. The analyst said, “The company has been confirmed as a supplier of actuators and core components for BD,” adding, “Considering the mass production schedule, we believe it is highly likely that specific supply partners, including Tier 1 vendors, will be selected during the second half of the year.” He continued, “In the short term, stock price volatility is increasing due to external factors and earnings, but we believe the growth momentum remains valid.”