April 26, 2024

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[THE INVESTOR] Mando’s earnings will regain in the latter half, said NH Investment and Securities on June 20, maintaining a “buy” recommendation and 52,000 won (US$46.85) target price. 

It is diversifying its client base while advancing products, and despite uncertainties in the automobile industry, advanced driver assistance systems sector is growing steadily. Mando’s increasing revenue from North American region in the second half will put its earnings back on the track. 

Manufacturing a new Santafe model in the US will begin and boost the growth of ADAS in the latter half. Supply of brakes and steering parts to Ford will start and revenue in North America will begin to recover, said analyst Cho Su-hong.

The auto parts maker’s new orders last year amounted to 12.5 trillion won and ADAS contributed 17 percent. The stable trend of new orders, strengthening safety regulations and increasing number of customers choosing options will maintain over 20 percent growth rate of ADAS sector by 2020, the analyst noted.

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