Hanra Holdings, Expected Performance Recovery from Q2

[Asia Economy Reporter Park Jihwan] Shinyoung Securities forecasted on the 30th that Halla Holdings will show a recovery in performance starting from the second quarter this year. Accordingly, they issued a 'Buy' investment rating and set a target price of 43,000 KRW.

Researcher Moon Yongkwon of Shinyoung Securities evaluated, "Halla Holdings faced a burden due to the poor performance of automotive parts affiliates such as Mando in the first half, caused by the impact of the novel coronavirus disease (COVID-19)." However, he explained that efforts to improve profitability at the group level, such as fixed cost reduction and downsizing low-profit businesses, are underway.

Researcher Moon Yongkwon predicted, "Thanks to a diversified customer base including Geely, GM, Ford, and North American EVs, as well as growth in ADAS sales, Mando and Mando Hella are expected to show a recovery in performance starting from the second quarter as the bottom."

He stated, "Due to the stock price decline amid concerns over the spread of COVID-19 at the beginning of the year, the dividend per share has decreased by 10% at the current stock price level," adding, "The dividend yield is relatively high at 5.5% compared to other holding companies."

This content was produced with the assistance of AI translation services.