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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Mirae Asset Securities has revised the target price for HL Mando from 42,000 won to 49,000 won on the 30th, anticipating continued visible external growth.
Mirae Asset Securities stated, "Despite a decrease in sales to major customers due to the short-term decline in electric vehicle demand, HL Mando continues to expand its sales to local companies in regions such as Korea, North America, China, and India. Starting at the end of this year, the company will also begin supplying Integrated Electronic Brake Systems (IBD2) in North America."
The company is projected to have an average annual growth rate (CAGR) of 8% from 2023 to 2025, surpassing the growth of the front-line industry.
Mirae Asset Securities evaluated HL Mando as a beneficiary of the large-scale facility and consumer goods replacement policy in China, aimed at boosting domestic demand, and the high growth of the Indian market driven by per capita GDP growth.
In the second quarter of this year, HL Mando's sales amounted to 2.1 trillion won, 2% below the market consensus, but the operating profit was 896 billion won, 3% above the consensus.
The year-on-year sales growth rates by region were: Korea -1%, Americas 7%, China -3%, Europe 22%, and India 8%.
The accumulated order amount for this year stands at 11.5 trillion won, achieving 76.4% of the annual order target of 15.1 trillion won.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
