[Click eStock] "Mando, China Sales Growth Expected from Q4"

[Asia Economy Reporter Eunmo Koo] There is an analysis that Mando's sales in China are also expected to grow starting from the fourth quarter of this year.

Shinyoung Securities estimated that Mando's sales in the third quarter of this year will be 1.482 trillion KRW, a 1% increase compared to the same period last year, and operating profit will be 52 billion KRW, a 27% decrease, meeting market expectations. On the 16th, Yongkwon Moon, a researcher at Shinyoung Securities, analyzed in a report, "Thanks to the growth of Advanced Driver Assistance Systems (ADAS) and improved operating rates in key regions, the third quarter operating profit will record results similar to the operating profit of 52 billion KRW in the same period last year, excluding one-time gains."

The operating rate in the Korean region is expected to improve to a level similar to last year. Researcher Moon explained, "Thanks to the strong domestic sales of Hyundai and Kia vehicles, the operating rate in the Korean region will recover from 50% in the second quarter to 70% in the third quarter," adding, "The increase in sales of high-end vehicles such as Genesis is also a positive factor for ADAS performance." The North American operating rate is also expected to improve from 30% in the second quarter to 70% in the third quarter, supported by the mitigation of the combined U.S. production decline of Hyundai and Kia and the normalization of production by North American electric vehicle (EV) companies. However, Researcher Moon explained, "Despite the recovery in Chinese demand, due to the sluggish performance of Hyundai and Kia in China, sales in China are expected to slightly decrease in the third quarter, but from the fourth quarter, the company's sales in China are expected to grow as local supply to North American EV companies' factories in China begins in earnest."

However, there is an assessment that quality-related costs may occur in the fourth quarter. Researcher Moon explained, "A brake defect occurred in Hyundai and Kia vehicles supplied by Mando, and the related volume is about 750,000 units, so the related costs will be reflected in the fourth quarter's performance."

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