April 27, 2024

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[THE INVESTOR]  Mando’s recent stock price adjustment has resulted in a price advantage, said Mirae Asset Daewoo on April 11, upgrading its recommendation to a “buy” from a “trading buy.”

Its biggest client Hyundai Motor Group’s sales in China can recover when it rolls out new cars and strengthens marketing campaigns in the latter half with expectations riding high, said analyst Park In-woo. 

The carmaker’s yearly revenue will meet the 6 trillion won (US$5.23 billion) target and operating profit ratio will improve to 5.4 percent, estimated the analyst, maintaining a 290,000-won target price. 

Mando’s revenue in the first quarter will inch up 0.1 percent to 1.37 trillion won and operating profit will rise by 5 percent to 58.8 billion won on-year. However, net profit will fall 28 percent to 28.7 billion won, said Park. 

The estimated operating profit is below market expectations, dragged down by the unfavorable exchange rate, slow shipments of Hyundai Motor and reduction of sales in China, noted the analyst.

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