April 19, 2024
Stocks & Bonds
[EQUITIES] ‘Mando hit by Hyundai’s slow China sales’
[THE INVESTOR] Mando will be affected by the sluggish sales of its main client Hyundai Motor in China, said Daishin Securities on April 17, downgrading it to a “market perform” from a “buy,” lowering the target price to 220,000 won (US$193.42) from 310,000 won.
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Hyundai Motor Group accounted for about 50 percent of its revenue last year, and the sharp decline in sales in China is expected to continue into the second quarter, dragging down its earnings, said analyst Jeon Jae-cheon.
The March sales of Hyundai and Kia Motors fell 50 percent on-year, and will slide further hitting the bottom in April, according to the analyst.
It will take a few months before concerns over China’s THAAD row and KIA’s dealership disputes are resolved, said Jeon.
By Hwang You-mee (glamazon@heraldcorp.com)
