[Edaily Reporter Kim Hyung-il ] LS SECURITIES analyzed that HyundaiAutoever(307950)is evolving from a supplier of system integration (SI), navigation systems, and automotive middleware into a software integration provider responsible for the development, integration, verification, and operation of HyundaiMotor Group’s software-defined vehicles (SDVs). The firm maintained its “Buy” rating and set a target price of 540,000 won.

On the 4th, Lee Byung-geun, an analyst at LS SECURITIES, explained that Mobilgene—the in-vehicle software (SW) division—had previously been identified as HyundaiAutoever’s key growth driver, and that the firm had recognized the expansion of applied control units and the shift toward revenue per vehicle. However, based on this event and interviews with executives, the firm confirmed that the company is now involved in system architecture design, common development environments, external software integration, mass-production verification, vehicle data pipelines, and Over-the-Air (OTA) software update operations.

The report explains that HyundaiMotor, KIA CORPORATION, HyundaiAutoever, 42dot, and others are transitioning to a “One Team” development system in which they share a single workspace, data pipeline, and validation environment. HyundaiAutoever is expected to move beyond its current role of integrating finished software at the end of the process to participate in joint development and validation from the initial system design stage.

With the shift to SDVs, vehicle architecture is expected to evolve from a distributed structure with function-specific electronic control units (ECUs) to one centered around a central high-performance computer (HPC) and zone controllers. While the number of ECUs will decrease, the integrated controller will require a much more complex operating system (OS) and middleware, and the task of migrating, integrating, and validating existing software onto the new platform will also arise.

Consequently, the analyst concluded that the automotive software business should be evaluated based on the scope and complexity of the software per vehicle, rather than solely on the number of ECUs. The analyst predicted, “As the scope of Mobilgene and functions such as communications, security, and OTA expands, and system integration and validation are added, HyundaiAutoever’s order volume per vehicle is highly likely to increase.”