Mando’s earnings prospects for this year have been lowered, said Eugene Investment and Securities on Feb. 7, lowering the target price to 325,000 won (US$300.68) from 350,000 won.
Dragged down by the slow business at home and in the US, the strong won and a decline in the unit price of finished automobiles, its revenue in the fourth quarter of last year fell 11.3 percent on-year to 1.51 trillion won, while operating profit fell 42 percent to 64 billion won, below market expectations, said analyst Lee Jae-il.
However, in the first quarter, revenue will rise 8.9 percent on-year to 1.5 trillion won and operating profit 19.5 percent to 72.1 billion won, as the decrease in Hyundai Motor and Kia Motors’ shipments in China will shrink and local shipments in China will expand, forecast the analyst.
There are a number of negative factors including the unit price cut of finished cars, declining margins in China and the strong won, noted Lee, lowering the earnings per ratio down 6.8 percent.
By Hwang You-mee (email@example.com