Corporate Logo(source: mobis.com)
SK Securities raised its target price for Hyundai Mobis (012330) to 390,000 won on July 10, citing expectations that the company will benefit from the proposed amendment to the Commercial Act. The firm maintained its “Buy” rating.
In a report released the same day, Yoon Hyuk-jin, an analyst at SK Securities, stated, “Many investors agree that Hyundai Mobis is positioned at the apex of Hyundai Motor Group’s governance structure. While previous attempts at restructuring the group’s governance were unsuccessful, recent developments—such as the proposed amendment to the Commercial Act and broader trends toward enhancing shareholder rights—have reduced the likelihood of disadvantaging minority shareholders.”
Yoon added, “Among companies in the automotive sector, Hyundai Mobis stands to benefit the most from the legislative changes. We have increased the premium over automakers from 20% to 30%, and based on revised earnings forecasts, we maintain our Buy rating and raise the target price to 390,000 won.”
He also noted that if legislation allowing separate taxation of dividend income for companies with payout ratios above 35% is passed, there could be further upside for Hyundai Mobis's shareholder return policy.
The company’s second-quarter results are also expected to be strong. Yoon projected revenue of 15.018 trillion won and operating profit of 834.3 billion won, representing a 31.2% year-on-year increase, in line with the consensus estimate of around 820 billion won. The operating profit margin (OPM) is expected to reach 5.6%, supported by narrowing losses in the electrification division, reduced quality-related costs, tax credits from the U.S. electrification plant (estimated at 165 billion won annually), and sustained high profitability in the aftermarket (AS) division. However, headwinds such as decreased electric vehicle production leading to lower plant utilization in Korea, as well as a decline in foreign exchange rates, are expected to partially offset gains.
Looking to the second half of the year, Yoon noted, “Hyundai Mobis is likely to be less affected by U.S. tariffs than finished vehicle manufacturers, with only around 6% of its revenue directly exposed to tariff-related risk.” He forecast third-quarter operating profit at 801.7 billion won and fourth-quarter operating profit at 819.5 billion won, assuming a 2-percentage-point decline in the AS division’s margin due to tariff-related pressure compared to the first half.
*[KOSPI] Hyundai Mobis(012330) is a subsidiary of the Hyundai Motor Group, engaged in the manufacture of automotive modules and parts and parts for after-sales service. Market capitalization is 28.364 trillion won (as of July 9, 2025, closing price).
Corporate Logo(source: mobis.com)
SK Securities raised its target price for Hyundai Mobis (012330) to 390,000 won on July 10, citing expectations that the company will benefit from the proposed amendment to the Commercial Act. The firm maintained its “Buy” rating.
In a report released the same day, Yoon Hyuk-jin, an analyst at SK Securities, stated, “Many investors agree that Hyundai Mobis is positioned at the apex of Hyundai Motor Group’s governance structure. While previous attempts at restructuring the group’s governance were unsuccessful, recent developments—such as the proposed amendment to the Commercial Act and broader trends toward enhancing shareholder rights—have reduced the likelihood of disadvantaging minority shareholders.”
Yoon added, “Among companies in the automotive sector, Hyundai Mobis stands to benefit the most from the legislative changes. We have increased the premium over automakers from 20% to 30%, and based on revised earnings forecasts, we maintain our Buy rating and raise the target price to 390,000 won.”
He also noted that if legislation allowing separate taxation of dividend income for companies with payout ratios above 35% is passed, there could be further upside for Hyundai Mobis's shareholder return policy.
The company’s second-quarter results are also expected to be strong. Yoon projected revenue of 15.018 trillion won and operating profit of 834.3 billion won, representing a 31.2% year-on-year increase, in line with the consensus estimate of around 820 billion won. The operating profit margin (OPM) is expected to reach 5.6%, supported by narrowing losses in the electrification division, reduced quality-related costs, tax credits from the U.S. electrification plant (estimated at 165 billion won annually), and sustained high profitability in the aftermarket (AS) division. However, headwinds such as decreased electric vehicle production leading to lower plant utilization in Korea, as well as a decline in foreign exchange rates, are expected to partially offset gains.
Looking to the second half of the year, Yoon noted, “Hyundai Mobis is likely to be less affected by U.S. tariffs than finished vehicle manufacturers, with only around 6% of its revenue directly exposed to tariff-related risk.” He forecast third-quarter operating profit at 801.7 billion won and fourth-quarter operating profit at 819.5 billion won, assuming a 2-percentage-point decline in the AS division’s margin due to tariff-related pressure compared to the first half.
*[KOSPI] Hyundai Mobis(012330) is a subsidiary of the Hyundai Motor Group, engaged in the manufacture of automotive modules and parts and parts for after-sales service. Market capitalization is 28.364 trillion won (as of July 9, 2025, closing price).