‘Can Georgia be a city of dreams and hopes?’
As news of the cooperation between Kia and Apple is delivered two days after the other, US-related Georgia-related stocks, which have rapidly emerged as a production facility for’Apple Cars’, are excited. As domestic investors flocked to Georgia-related stocks, stocks that have skyrocketed to the price limit also emerged. Hyundai Motor Company is maximizing productivity by entering overseas markets with parts makers(248,500 +1.22%)· Due to the characteristics of the Kia Group, parts makers are expected to benefit if the Apple car alliance becomes a reality. However, some point out that we should be wary of reckless investment in’Georgia’s theme stock’.
Georgia plant is the largest weapon?
KB Autosys at the KOSDAQ market on the 4th(11,100 ↑29.52%)Finished the market at 11,100 won, up 29.52%. The stock price soared after news that a new factory was built in Georgia with an investment of $38 million this afternoon. The stock price has risen due to the fact that a new plant will be built about 30 minutes away by car from the Kia Georgia plant. KB Autosys is a brake pad company headquartered in Asan, Chungnam, and supplies parts to Hyundai Motor Company, Kia, and GM.
Guyoung Tech supplies parts to Hyundai Motor Company and Kia based on a local factory in the US(5,190 ↑29.91%)Also, the price limit on this day has risen. Guyoung Tech is known as a company that produces various vehicle parts including seat parts. The company’s stock price soared more than 100% in four days from the end of last month at 2575 won. The reason for the soaring share price is also due to the’Georgia theme’. Goo Young Tech’s US plant is located in Alabama, where Hyundai Motor’s plant is located. It supplies parts to both Hyundai Motors and Kia.
Battery related lead is also hilarious
SK Innovation, one of the leading battery suppliers for Hyundai’s next electric car Ioniq 7(317,000 +0.32%)And related companies are also attracting attention. SK Innovation is building a new plant in Georgia. For this reason, it has had a positive effect on the recent share price as an analysis that the Apple car could have an advantageous position if it is produced at the Kia Georgia plant. On this day, NVH Korea(5,620 ↑29.94%)Also recorded the upper limit (29.94%). Wonbang Tech, a subsidiary of NVH Korea(49,850 +6.40%)Is being supplied to SK Innovation’s US plant.
The reason that domestic auto parts makers have settled around Hyundai Motor and Kia plants is due to Hyundai Motor Group’s strategy. Hyundai Motor Group, which has grown through vertical integration,(358,000 +3.02%). Hyundai Steel(41,200 +0.98%) Mando including affiliates(75,800 -4.89%), Incarnation(6,580 +10.40%) Advance with other parts companies. Hyundai Motor Company has been marketing through large-scale discounts for a long time to survive the competition with global automakers. In order to make up for this discount range with productivity, it entered the local market together.
“Need to cover the falling water effect boulder”
The market estimates that Georgia was the theme that investors sought after the overall stock price was adjusted. The KOSPI and KOSDAQ indexes fell 1.35% and 0.63%, respectively, but Hwashin (10.40%) and Dongwon Metal(1,460 +8.96%)(8.96%), Hwaseung R&A(2,910 +7.98%)(7.98%) It means that you can get a glimpse of this sentiment from the fact that they jumped so much. These are also parts makers based near Kia’s Georgia plant. If the Apple Car, which is predicted to start production as early as 2024, hits the jackpot like the iPhone, its partners could enjoy the effect of falling water. However, there is a possibility that the high rate of return is not guaranteed during the negotiation process between Apple and Kia.
The G-Bargain, Mercedes’ premium sports utility vehicle (SUV), is LG Electronics(157,500 -4.55%)It is produced by Magna, a Canadian parts maker that recently started collaboration with It is similar to the production method Kia and Apple envision. However, Magna’s operating profit margin in this process is known to be around 1~2%. It is explained that it is difficult to expect high profits if Kia also becomes a simple consignment manufacturer. Shin Jin-ho, CEO of Midas Asset Management, advised, “It is highly likely that mid-sized and small and medium-sized companies will also benefit from the business strategy of large companies due to the domestic industrial structure.”
Reporter Park Jae-won [email protected]