Hyundai Mobis is drawing attention as a key beneficiary of robotics component supply, as robot stocks rise alongside AI and semiconductor stocks. Brokerages are successively raising target prices for Hyundai Mobis, which has already gained 105% this year.
KB Securities on Wednesday gave a positive assessment of Hyundai Mobis' actuator business, the core driving component for robots. The brokerage raised its target price to 1.2 million won from 750,000 won and maintained a "buy" rating.
"Assuming Boston Dynamics' Atlas captures 60% of the industrial humanoid market, Hyundai Mobis is expected to generate 14 trillion won in operating profit from its actuator business by 2035," said Kang Sung-jin, an analyst at KB Securities.
"Atlas targets the high-end industrial humanoid segment, and the actuator supply chain will also create high added value," he said. "This is expected to emerge as a flagship business for Hyundai Mobis."
"We expect Atlas's selling price to fall to $190,000 (280 million won) and to achieve economics comparable to a worker with 48 million won in labor costs," he added. "If 1.5 million Atlas units are sold (a 60% share of industrial humanoids) and 28% of the selling price goes to actuator purchases, Hyundai Mobis could generate actuator revenue of 186 trillion won."
He also expects benefits in the modules, parts and after-sales service segments as Hyundai Motor Group expands its automotive market share. "Hyundai Motor Group will significantly expand its automotive market share based on productivity innovation, and by 2035, module and parts operating profit will grow to 4.2 trillion won and after-sales operating profit to 5.8 trillion won," Kang said.
"While the market share of major automakers that failed to transition to eco-friendly vehicles will shrink, Hyundai Motor Group can quadruple its production share in markets outside China through the adoption of external autonomous-driving AI such as Alpamayo and through autonomous vehicle foundry (contract manufacturing) operations," he explained.
Earlier, on the 29th of last month, Shinhan Securities also raised its target price for Hyundai Mobis to 900,000 won from 570,000 won. "We note that Hyundai Mobis can be re-rated beyond an auto parts maker, encompassing after-sales service parts, electrical and electrification components, software-defined vehicle (SDV) hardware, robot actuators, and the physical AI value chain," Shinhan Securities said in a report.
Shinhan Securities forecast Hyundai Mobis' annual operating profit at 3.65 trillion won this year and 4.1 trillion won next year.
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