[Click eStock] "Mando, Favorable Conditions for Strong Performance... Top Preferred Parts Stock"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities stated on the 13th that Mando has favorable conditions for strong performance, recommending a buy rating with a target price of 60,000 KRW, and named it the second most preferred stock in the automobile sector and the top preferred stock in the parts sector. The target price was calculated by applying a price-to-earnings ratio (PER) with a 50% discount rate to this year's expected earnings per share of 4,290.2 KRW and the valuation of Hyundai Motor's Level 4 autonomous driving joint venture partner, Aptiv.

Mando's first-quarter sales this year are expected to reach 1.7 trillion KRW, an 11.7% increase compared to the same period last year, while operating profit is forecasted to decrease by 7.6% to 66.4 billion KRW. For the full year, sales are projected to be 6.9 trillion KRW and operating profit 314.9 billion KRW, representing increases of 13.0% and 4.5%, respectively. Strong order volumes from North American battery electric vehicle (BEV) customers and local Chinese original equipment manufacturer (OEM) production, along with a cost contract structure favorable compared to competitors, are expected to drive performance.

Researcher Kim Gwi-yeon of Daishin Securities said, "With customers including Chinese OEM companies and North American BEV companies that are continuously expanding production, Mando has a customer portfolio advantageous in the current market conditions," adding, "autonomous driving momentum is expected to strengthen starting with Genesis, and Mando supplies hardware sensors and integrated controllers to Genesis, with the G90 scheduled to be equipped with a Level 3 autonomous driving system by the end of this year."

Mando produces and sells products related to braking, steering, suspension, and advanced driver-assistance systems (ADAS) such as sensors, cameras, and LiDAR. Last year, the sales proportion by customer was 55% Hyundai Motor Group, 9% GM, 12% Chinese OEMs, and 5% Europe.