[Alpha Biz= Reporter Kim Minyoung] On the 29th, NH Investment & Securities maintained a "Buy" rating on Hyundai AutoEver with a target price of 230,000 won.
NH Investment & Securities explained, “Hyundai AutoEver continues to demonstrate solid growth due to its IT services driven by affiliate IT investments, the expansion of high-margin vehicle software through large-scale and premium navigation systems linked to affiliate vehicle sales, and the increased application of vehicle software.”
NH Investment & Securities added, “The growth and profitability of Hyundai AutoEver have improved simultaneously with the Hyundai Motor Group's expansion, driven by ICT growth areas such as ERP, cloud, and smart factories, as well as strengthened navigation software and mapping, and increased vehicle software adoption. The company is also pursuing external business expansion and new business development, including AAM (Advanced Air Mobility).”
NH Investment & Securities further noted, “In the second quarter, Hyundai AutoEver’s revenue increased by 22% year-over-year to 918.1 billion won, and operating profit rose by 30% to 68.5 billion won, exceeding market consensus. The SI (System Integration) segment saw substantial growth due to the expansion of next-generation ERP system implementations among major affiliates, along with carried-over revenue from the previous quarter.”
NH Investment & Securities also mentioned, “The ITO (IT Outsourcing) segment maintained growth in line with guidance, and the vehicle software segment experienced enhanced growth due to deferred revenue recognition. Profitability has also temporarily expanded, leading to the highest-ever quarterly operating profit margin of 7.5%.”
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
