[Alpha Biz=(Chicago) Reporter Paul Lee] SK Securities raised its target price from 270,000 won to 310,000 won on the 1st, predicting that Hyundai Mobis' first-quarter earnings will increase significantly due to the base effect of the same period last year. The investment opinion was maintained 'Buy (Buy)'.
SK Securities said, "We estimate sales of KRW 13.9 trillion in the first quarter (-5.5% year-on-year, -5.5% quarter-on-quarter), operating profit of KRW 657.5 billion (+57.3% year-on-year, +25.7% year-on-year), and operating profit ratio (OPM) 4.7%."
Excluding reverse growth of the power division, which has been occurring since the previous quarter (down 1.2 trillion won year-on-year due to conversion to cell procurement, falling cell prices, and mix changes from EV to HEV), sales are expected to perform well due to strong sales of core parts (such as controllers, ADASs, etc.). Operating profit is estimated to have increased significantly due to the base effect of 170 billion won in one-off costs in the first quarter of last year," SK Securities explained.
"The AS division is concerned about changes in logistics costs, but with a stable operating profit ratio of 22%, the company's profit contribution is still above 90%, and the power division is still estimated to be at a deficit," SK Securities said.
SK Securities expects sales to fall -0.3% to 59.1 trillion won this year and operating profit to rise +14.8% to 2.6 trillion won.
Alphabiz Reporter Kim SangJin(hoondork1977@alphabiz.co.kr)
