Growing Demand for Eco-friendly Cars Boosts Share Price
Hyundai Mobis’s stock price has been showing a sharp uptrend due to the expanding markets for eco-friendly vehicles such as electric vehicles (EVs) and fuel cell electric vehicles (FCEVs). Its earnings are expected to grow amid rising demand for eco-friendly parts. This year, the stock price of Hyundai Motor, the flag bearer of Hyundai Motor Group, failed to rise due to poor earnings, but Hyundai Mobis enjoyed a hike in its stock price. Accordingly, Hyundai Mobis significantly cut its market capitalization gap with Hyundai Motor.
On Dec. 18, Hyundai Mobis’s share price once climbed to 268,000 won, recording a 52-week high for two consecutive days following 267,000 won on Dec. 17. The closing price on that day was 267,000 won, a 40.53 percent jump from the beginning of this year. Hyundai Motor’s stock price rose only 3.8 percent to 123,000 won during the same span. Based on the closing prices, Hyundai Motor’s and Hyundai Mobis’ market caps hit 26,281.2 billion won and 25,446.9 billion won, respectively. The gap narrowed a great deal from the end of 2018 when Hyndai Motor recorded a market cap of 25,319.7 billion won against 18,495.3 billion won of Hyundai Mobis.
Hyundai Mobis produces key motor parts such as drive motors, starting generators, battery systems, and on-board chargers among others. This year, a consensus on Hyundai Mobis's annual operating profit is 2,376.9 billion won, up 16.93 percent from last year, according to Fn Guide. A consensus on its operating profit in 2020 is 2,644.6 billion won, up 11.7 percent from 2019.
In the securities market, experts forecast that Hyundai Motor’s and Kia Motors’ expansion of eco-friendly car sales will benefit Hyundai Mobis which supplies core parts for EVs to the two automakers.