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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Mando’s new orders to secure long-term growth’

  • PUBLISHED :July 28, 2017 - 17:31
  • UPDATED :July 28, 2017 - 17:31
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[THE INVESTOR] Mando has failed to meet second-quarter earnings expectations but has secured new orders that will guarantee long-term growth, said Meritz Securities on July 28. 




The entire industry suffered a slowdown, and although Mando did suffer from the operation ratio decline in Hyundai Motor’s Chinese factory, its loss was the smallest, said analyst Kim Jun-seong. 

Its short-term earnings were not satisfactory but it is winning new orders much more than expected, reaching 9.5 trillion won in the first half and will easily surpassing 12 trillion won this year, according to the analyst. New orders last year amounted to 9 trillion won. 

Advanced driver-assistance systems take up to 17 percent of the new orders and its main clients Hyundai Motor and Kia Motors will raise the adaptation rate up to 70 percent in five years from the current 7 percent, noted Kim. 

In time for a new car release cycle that begins next year, Hyundai Motor Group is seeking to merge the platforms that will make auto parts interchangeable and Mando is likely to cement higher market share, forecast the analyst, maintaining a “buy” recommendation and 295,000 won target price. 

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

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