[Infostock Daily= Reporter An Hoe Hyun] NH Investment & Securities said on the 2nd that Hyundai AutoEver has continued to show high performance visibility despite the new coronavirus infection(COVID-19). On top of that, expectations for benefits from the restructuring of the governance structure are also growing due to the inauguration of Hyundai Motor Group Chairman Chung Eui-sun, raising its target stock price from 71,000 won to 76,000 won. The investment opinion remained 'Buy'.
"Although there is a delay in implementing the new System Integration(SI) project with COVID-19, profitability is improving due to increased sales of high-margin ITO(IT Outsourcing) by 2021 due to the Consolidate IT staff of its overseas affiliates," the company said, adding, "It is also expected to accelerate digital transformation, such as expanding demand for the cloud and revitalizing untact operations, and expand ICT business opportunities in accordance with the Korean version of the New Deal comprehensive plan."
"It is expected to continue operating profit growth of around 10% annually due to increased sales of strategic businesses such as smart factories, smart buildings · homes and smart mobility," the company said, adding, "The mid- to long-term growth potential due to digital conversion is valid."
Hyundai AutoEver is also likely to benefit from the recent restructuring of Hyundai Motor Group's governance structure, which has been gaining market expectations. "Market interest in the restructuring of Hyundai Motor Group's governance structure has risen due to the inauguration of Chairman Chung Eui-sun and the start of inheritance of Samsung Group," the company explained, adding, "Although Hyundai AutoEver is located at the bottom of the group's governance structure, it is expected to play a role in resolving the group's circular shareholding and inheritance in the future as Chairman Chung Eui-sun's stake is high at 9.6%."
Reporter An Hoe Hyun ahh@infostock.co.kr
