[Alpha Biz=(Chicago) Reporter Paul Lee] Daol Investment & Securities raised Hyundai Mobis' target stock price from KRW 300,000 to KRW 330,000. Analysts say that profit turning points are imminent, especially in the parts business. The investment opinion remained 'buy'.
"Hyundai Mobis' share price net asset ratio (PBR) as of this year is 0.54 times, which is undervalued," said Daol Investment & Securities. "Despite the highest similarity in business with finished cars, PBR valuation is being delayed due to margin improvement due to the nature of parts makers."
Hyundai Mobis made annual sales last year
Hyundai Mobis' biggest core business, parts manufacturing, has begun to surpass the appearance of electric parts since the fourth quarter of last year. In the case of electrified parts, private recognition has been applied to new electric vehicle (EV) models since the third quarter of last year.
"The growth rate of the auto industry is expected to be around 4% this year, while the sales growth rate of Hyundai Mobis' parts manufacturing division is expected to exceed 18% for the second consecutive year and is expected to grow 17.2% this year," said Daol Investment & Securities. "The return on equity (ROE) continues to improve from 6.8% in 2022 to 8.8% last year."
Alphabiz Reporter Kim SangJin(hoondork1977@alphabiz.co.kr)
