April 26, 2024

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[THE INVESTOR] The technologies for self-driving vehicles are advancing faster than expected and auto parts manufacturer Mando will be among those who will benefit most, said Daishin Securities on Jan. 16, raising the target price to 330,000 won (US$280.25) from 310,000 won. 

“The progress is faster than thought and the possibilities of changes from customers are growing,” said analyst Jeon Chae-cheon. “Some are worried about China slowing down but Mando’s Chinese clients will grow relatively fast, and at least meet the market expectations.”

Sales in China accounted for two-thirds of Mando’s operating profit in 2016 and will continue to grow, noted the analyst. 

The company will suffer 10 billion won loss from the exchange rate hike but 8 billion won profit from selling its new materials affiliate will offset the loss, said Cheon, estimating its 2017 revenue and operating profit to reach 6 trillion won and 325 billion won, respectively.

By Hwang You-mee (glamazon@heraldcorp.com)