[Edaily Reporter Shin Ha-yeon ] On the 30th, NH INVESTMENT & SECURITIES analyzed that HyundaiAutoever(307950)posted second-quarter earnings that exceeded market expectations, driven by the expansion of high-value-added projects, and predicted that the company would further benefit from the group’s AI infrastructure development in the second half of the year. The firm maintained its “Buy” investment rating and target price of 640,000 won.

Ha Neul, an analyst at NH INVESTMENT & SECURITIES, noted, “Second-quarter earnings achieved strong top-line growth and profitability in Enterprise IT due to an increased share of high-value-added projects, while growth in automotive software slowed due to a contraction in the Chonbang industry.” She added, “The company has begun building its AI infrastructure following the announcement of consolidated AI server purchases and open tenders by group affiliates.”

The outlook for the second half of the year is that the company’s role will expand as it participates in the group’s AI infrastructure development, data center expansion, and humanoid robot production.

Analyst Ha noted, “On July 24, HyundaiMotor and KIA CORPORATION announced a joint procurement and supply agreement for GPU servers,” adding, “It is estimated that approximately 10% of the HyundaiMotor Group’s total order of 50,000 GPUs will be supplied in the first phase.” He further analyzed, “The GPU AI server infrastructure is expected to be utilized for training autonomous driving foundation models, training humanoid robots, and developing in-vehicle on-device AI.”

HyundaiAutoever’s second-quarter consolidated revenue reached 1.2507 trillion won, a 20.0% increase year-over-year, while operating profit rose 11.3% to 90.5 billion won, exceeding consensus estimates.

By segment, Enterprise IT revenue reached 1.3834 trillion won, a 27.9% increase year-over-year, driving top-line growth. Revenue from automotive software fell 7.8% to 212.3 billion won, but the analyst explained, “Gross profit margin (GPM) expanded to 11.5% due to an increased share of high-value-added projects, such as the implementation of next-generation ERP systems,” adding, “The automotive software division recorded profit leverage effects despite a slowdown in growth.”

Researcher Ha predicted, “Profitability is expected to improve in the second half of the year as the transition to next-generation ERP systems at overseas subsidiaries continues, along with third-quarter ITO unit price negotiations and an increase in the adoption rate of next-generation navigation systems.”