South Korea’s Hyundai Mobis (012330.KS) is positioned to be the earliest revenue beneficiary of Hyundai Motor Group’s “Physical AI” business, as it serves as the sole supplier of actuators for Boston Dynamics’ humanoid robot, “Atlas.” On September 2, LS Securities maintained a “Buy” rating on Hyundai Mobis with a target price of approximately $550 (750,000 won).

Should Atlas production scale up to 30,000 units per year as projected, Hyundai Mobis’s actuator revenue could reach between approximately $761.7 million (1.0416 trillion won) and approximately $1.0 billion (1.4322 trillion won). However, these figures are estimates based on production targets and unit costs; actual revenue will depend on the robot’s production schedule and the scope of supply.

Hyundai Motor Group has launched its Robot Metaplant Application Center (RMAC) in the United States and plans to expand the facility to ten times its current size by the end of this year. The group aims to establish a production system capable of manufacturing 30,000 robots annually by 2028.

Initially, Atlas will be deployed at Hyundai Motor Group Metaplant America (HMGMA) for sequencing tasks, such as arranging and supplying parts. Starting in 2030, its application is expected to expand to automotive assembly processes. As the robot’s utility moves beyond pilot testing into broader production environments, demand for components is likely to rise.

The actuators supplied by Hyundai Mobis are critical drive components that convert energy—such as electricity or hydraulic pressure—into physical movement and force. Each Atlas unit is equipped with 31 body actuators. LS Securities estimated the mass-production cost per unit at $800 to $1,100 (approximately 1.1 million to 1.5 million won). Consequently, the actuator revenue attributed to Hyundai Mobis per robot is estimated at approximately $37,000 (50 million won).

Atlas Production VolumeEstimated Actuator Revenue5,000 units$174.6 million – $292.5 million10,000 units$349.1 million – $292.5 million20,000 units$698.3 million – $292.5 million30,000 units$761.7 million – $1.0 billion

Note: Estimates are based on LS Securities’ assumptions regarding actuator mass-production costs. The 30,000-unit figure uses an exchange rate of 1,400 won per $1.

Revenue recognition is expected to potentially begin in 2027. Furthermore, once an actuator plant planned for construction in the U.S. becomes operational, potential revenue could reach approximately $292.5 million (400 billion won). There is also room for further revenue growth if the supply list expands to include after-sales service parts or grippers.

“Hyundai Mobis is the earliest beneficiary, as robot component revenue could begin as early as 2027,” said Lee Byung-keun, an analyst at LS Securities. “Given its solid hardware position within the group’s robotics business, the company deserves a premium compared to traditional parts suppliers.”

The benefits for other Hyundai Motor Group affiliates are expected to vary. Hyundai AutoEver (307950.KS) is likely to see increased opportunities in software and system integration as Atlas transitions from pilot processes to large-scale factory applications. Meanwhile, Hyundai Motor (005380.KS) and Kia (000270.KS) are expected to see long-term manufacturing cost reductions as robot adoption scales.

Hyundai Mobis’s existing automotive parts business remains a variable. While cost pressures persist due to rising prices for memory semiconductors, printed circuit boards (PCBs), and copper-clad laminates (CCL), analysts suggest that price adjustments with clients and an increased share of high-value products in the second half of the year could partially offset these costs.

Regarding the stock, LS Securities noted that Hyundai Mobis is trading at a 12-month forward price-to-earnings (P/E) ratio of 9.1x, suggesting it is currently undervalued. However, investors should monitor the scale of Atlas mass production, actuator unit costs, and the operational timeline of the U.S. production base to gauge the actual contribution of the robotics business to earnings. The speed at which “Physical AI” is integrated into the group’s manufacturing sites will determine whether this new growth pillar becomes a reality for Hyundai Mobis.