[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 21st that it is maintaining its “Buy” rating on HyundaiAutoever(307950)but lowering its target price from 770,000 won to 640,000 won.

Ha Neul, an analyst at NH INVESTMENT & SECURITIES, explained, “While we expect HyundaiAutoever’s role to expand in areas such as smart factory construction, data center expansion, and humanoid production—driven by the group’s new business initiatives—we are lowering the target price to adjust our expectations regarding the pace of business development.” He added, “We have partially deferred the revenue recognition timing for the humanoid robot system integration (SI) business, which is expected to become a core business in the future revenue mix.”
He further elaborated, “Depending on the pace of facility construction at RA (Robotics America) in the second half of the year and the acquisition of external clients for humanoid robots, the timing of when these results are reflected in new business performance could be brought forward,” adding, “The fact that the company is expected to play a key role in the group’s Physical AI transformation strategy is the biggest investment highlight.”
Second-quarter revenue and operating profit are projected to come in at 1.1462 trillion won (+10.0% year-over-year) and 70.2 billion won (-13.7%), respectively, falling short of the operating profit consensus. Analyst Ha noted, “While ‘Enterprise IT’ is expected to continue its top-line growth with revenue of 920.4 billion won (+13.4%), automotive software is projected to see revenue of 225.7 billion won (-2.0%) as its growth momentum continues to slow.”
He added, “For Enterprise IT, sales contracts deferred from the previous quarter were concluded as normal during the second quarter’s seasonal peak, but since ITO unit price negotiations—which were expected to be finalized during that period—have been postponed to the third quarter, we forecast a recovery in profitability in the second half of the year.” He continued, “For automotive software, we anticipate a slowdown in navigation system sales due to declining downstream demand, along with continued increases in R&D costs.”