Heungkuk Securities said Wednesday that Hyundai Mobis’ fourth-quarter results met market expectations and that recovering tariff-related costs has reduced uncertainty, while its business shift toward automotive electronics and robotics continues. The brokerage raised its target price to 540,000 won from 500,000 won and kept its “buy” rating.
Hyundai Mobis posted fourth-quarter revenue of 15.4 trillion won and operating profit of 930.5 billion won. Revenue rose 4.7% from a year earlier, while operating profit fell 5.6%. Heungkuk Securities said output from automaker customers slipped 1.4%, but a favorable exchange-rate environment, a higher share of high value-added automotive electronics parts in manufacturing, and price increases in the after-sales service business lifted sales.
On profitability, the firm recovered about 2 trillion won of roughly 2.5 trillion won in parts-tariff costs incurred last year, sharply reducing the tariff impact. However, the after-sales service unit reflected about 870 billion won in tariff costs and about 600 billion won in one-time quality costs, pushing its operating margin down to 22.7% from the prior quarter. Heungkuk Securities said tariff-related pressure should ease gradually starting this year as after-sales prices rise and tariff recoveries accelerate.
Ma Geon Woo, an analyst at Heungkuk Securities, said Hyundai Mobis’ actuator business for Boston Dynamics is being developed using the company’s existing core technologies, limiting the burden of research and development and capital spending. He said the company could expand supply beyond actuators to additional parts for humanoid robots, creating business opportunities as physical AI develops.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.