[Click eStock] Mando Achieves Excellent Performance Despite Semiconductor Supply Crisis

[Asia Economy Reporter Lee Seon-ae] Daishin Securities announced on the 3rd that it maintains a 'Buy' investment opinion and a target price of 95,000 KRW for Mando.

First-quarter sales and operating profit were 1.5 trillion KRW (+191.5% yoy) and 71.9 billion KRW (+53.4% yoy), respectively, exceeding the market consensus (63.4 billion KRW) by 13%. This is interpreted as improved profitability due to cost structure improvements from active cost-cutting efforts since the second half of last year. Additionally, successful restructuring reduced global personnel by 4% (460 people), decreasing the fixed cost ratio relative to first-quarter sales by 2.9 percentage points.

Sales in China from North American electric vehicle company T are strong. In the first quarter, Mando secured a large-scale order for Volkswagen suspension worth 2.9 trillion KRW, and orders for IDB (Integrated Dynamic Brake) are expected to begin in earnest. Mando Hella completed its acquisition on March 1 and started reflecting profits and losses (sales of 9.5 billion KRW) from March. From the second quarter, it will be reflected in full. The semiconductor supply shortage peaked in the second quarter, and everything is expected to normalize from the second half of the year. Semiconductor supply and customer vehicle sales are expected to return to normal levels from the second half.

Lee Seung-hwan, a researcher at Daishin Securities, said, "The target price is based on applying a price-to-earnings ratio (PER) of 20x (the global top parts manufacturers' 12MF average PER) to the 12-month forward earnings per share (EPS). Despite the semiconductor supply shortage, first-quarter results exceeded market expectations due to cost reductions and strong performance in the Chinese region, and vehicle sales of customers are expected to recover to normal levels in the second half, which is promising."

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