1. Hyundai Mobis Q2 Earnings: What Happened?
Hyundai Mobis reported Q2 revenue of KRW 159.362 trillion (up 8.0% QoQ) and operating profit of KRW 8.7 trillion (up 11.9% QoQ). However, net profit decreased by 9.6% QoQ to KRW 9.325 trillion, falling short of expectations.
2. Analyzing the Drivers: Why These Results?
2.1 Positive Factors
- Continued overseas market expansion: Driven by new plant operations in the Americas and increased overseas sales.
- Solid growth in the A/S parts business.
- Positive impact of price increases implemented to offset rising raw material costs.
2.2 Negative Factors
- Decline in net profit due to non-operating factors such as increased financial expenses.
- Continued domestic market sluggishness due to decreased sales of electrified parts and weakening EV demand.
- Impact of raw material price volatility and exchange rate fluctuations.
- Intensifying competition in the EV market.
3. Investor Action Plan: What’s Next?
Hyundai Mobis’s future stock performance hinges on the success of its overseas expansion strategy, stabilization of raw material prices, outcomes of R&D investments, and its ability to overcome domestic market challenges. Investors should closely monitor these factors and carefully analyze the upcoming detailed quarterly report, particularly focusing on non-operating factors.