SNT Motiv is strengthening its partnership with Hyundai Motor Group, accelerating performance improvement. SNT Motiv supplies various parts, including motors, for hybrid and electric vehicles produced by Hyundai Motor Group. Recently, it secured a stable medium- to long-term revenue source by signing a large-scale supply contract with Hyundai Transys.
According to financial information provider FnGuide on the 24th, SNT Motiv is estimated to have recorded sales of 960.3 billion won and operating profit of 99.1 billion won last year. Compared to 2023, sales are expected to decrease by 15.5%, and operating profit by 15.1%.
The reason for last year's sluggish performance was largely due to the discontinuation of client vehicles. SNT Motiv has been supplying drive modules (motor, inverter) worth approximately 100 billion to 140 billion won annually for General Motors' (GM) "Bolt EV" vehicles. However, with GM's decision to suspend production of the Bolt EV in November 2023, a gap in revenue has occurred.
This year, SNT Motiv expects performance improvement thanks to the expansion of Hyundai Motor Group's eco-friendly vehicle sales. Cho Hee-seung, a research institute member at iM Securities, noted, "SNT Motiv exclusively supplies starting motors priced around 200,000 to 250,000 won for Hyundai Motor Group's hybrid vehicles. In the fourth quarter of last year, the cumulative sales of Hyundai Motor Group's hybrid vehicles reached about 246,000 units, reflecting a 37.8% increase compared to the same period the previous year, and growth in sales is expected this year as well."
There is also an evaluation that it has laid the groundwork for medium- to long-term growth. SNT Motiv recently signed a supply contract for electric vehicle drive modules for 1.28 million units over ten years starting in 2027 with Hyundai Transys. Daishin Securities estimates that this contract will allow SNT Motiv to secure annual sales of approximately 90 billion to 100 billion won.
SNT Motiv has established a motor production plant in India, which is considered a key production base for Hyundai Motor Group's next eco-friendly vehicles. India is regarded as the world's third-largest automobile market following China and the United States, with high growth potential due to its large population. SNT Motiv plans to produce motors in India and supply them directly to Hyundai's factories to respond to local demand. Currently, Hyundai has an annual production capacity of 824,000 vehicles at its Chennai plant, and when the Pune plant starts operating in the second half of this year, production capacity is expected to exceed 1 million vehicles.
SNT Motiv continues marketing activities to expand exports in the defense sector. Earlier this year, it participated in a firearms exhibition in Las Vegas and plans to attend the upcoming International Defence Exhibition & Conference (IDEX) in Abu Dhabi, United Arab Emirates, next month.
The securities market forecasts that SNT Motiv will record sales of 1.02 trillion won and operating profit of 105.8 billion won this year. This represents an increase of 6.2% in sales and 6.83% in operating profit compared to the previous year. Kim Gui-yeon, a research institute member at Daishin Securities, said, "This year, SNT Motiv is expected to grow primarily based on hybrid vehicle parts," adding, "There should be no issues with cash procurement for investments in new facilities."