Hyundai Mobis expected to rise on Seoul bourse

By Jhoo Dong-chan

Hyundai Mobis posted a worse-than-expected performance last year, but analysts say shares of the nation’s largest auto parts maker will reach 350,000 won ($330). The price has fluctuated between 240,000 won and 270,000 won this year.

Hyundai Mobis said last week it marked 35.14 trillion won in sales with an operating profit of 2.38 trillion won last year. Its net profit was 1.58 trillion won.

The figures indicate the outfit suffered an 8.1 percent drop in sales and a 29.8 percent drop in operating profit.

The disappointing performance is attributable to lack of sales momentum for Hyundai Motor and Kia Motors especially in the Chinese market.

The two carmakers account for about 70 percent of Hyundai Mobis’ sales.

Despite the company’s weak performance, analysts said the prospects for Hyundai Mobis are positive.

“Hyundai Mobis’ electric vehicle (EV) related sales will top 1 trillion won by 2020,” Samsung Securities analyst Esther Yim said.

“The firm is dominating the supply to Hyundai and Kia, and its automated manufacture and module system will boost its growth in the future.”

Other securities firms came up with a positive outlook for Hyundai Mobis on the Seoul bourse.

Heungkuk Securities expects Hyundai Mobis shares will reach 340,000 won while Mirae Asset Daewoo set the target price at 310,000 won and Daishin Securities at 305,000 won.

Global carmakers are stepping up efforts to develop autonomous and eco-friendly car technologies before their rivals do, aiming at changing the future of the car industry. And Hyundai Mobis has been fast in developing cutting-edge technologies in related fields.

During this year's Consumer Electronics Show (CES) in Las Vegas, Hyundai Mobis introduced its e-Corner module, which the auto parts maker said is “the first-ever integrated modular platform designed for electronic and eco-friendly vehicles.”

Hyundai Mobis said the module combines a motor, e-damper and brake-by-wire and steer-by-wire technologies in a package that can be installed within each wheel of a car. This eliminates the need for a traditional chassis and central engine and gives EVs four-wheel-drive capability.

During the event, the auto parts makers showcased its automated parking technology as well.

Dubbed remote smart parking assist, the technology uses ultrasound to have a car park itself in a selected space with the touch of a button after the driver gets out. This technology is scheduled to enter mass production in 2018.

In the pipeline is more advanced technology called automatic valet parking.

The company said this is a self-parking capability, enabling a car to park itself in a nearby parking space or garage without driver input. The process relies on autonomous sensor technology, such as ultrasound, highly precise maps and localized communication with parking infrastructure. Hyundai Mobis seeks to complete development of this technology this year.