[Click eStock] "Mando, On Track to Achieve 4 Trillion KRW in Sales by 2030"

[Asia Economy Reporter Ji-hwan Park] Hana Financial Investment maintained a 'Buy' rating and a target price of 73,000 KRW for Mando on the 3rd, stating that the company is steadily executing concrete plans to achieve sales of 4 trillion KRW by 2030.

Seonjae Song, a researcher at Hana Financial Investment, said, "Mando aims for an average annual sales growth of 11.4% until 2025, and it is expected to lead growth as the supply ratio for electric vehicle models expands from 20% in 2021 to 40% in 2025." He added that 80% of sales for electric vehicle models until 2025 have already been secured through orders, and not only volume increases but also price increases due to more components installed per vehicle are expected.

HL Clemoove, officially launched on the 1st, aims to create synergy through rapid decision-making, value chain integration, and cost reduction. HL Clemoove was established this month by merging Mando's existing ADAS division and its sensor/ECU subsidiary Mando Hella. Its sales this year are about 1.2 trillion KRW, with a target of 15% average annual growth until 2026. Researcher Song explained, "Currently, the product lineup mainly covers up to Level 2 autonomous driving, but by 2026, through product advancement/diversification (+0.4 trillion KRW), customer/region diversification (+0.8 trillion KRW), and entry into new mobility businesses such as robotics, the goal is to achieve 2.4 trillion KRW." He analyzed that the possibility of share dilution in HL Clemoove and how quickly it can be offset by mid- to long-term growth drivers will be one of the key variables for the stock price going forward. Song evaluated, "Overall, it is positive that the growth rate target has been raised through a more concrete strategy."

Additional growth opportunities through mergers and acquisitions (M&A) were also viewed optimistically. Mando plans to achieve sales of 4 trillion KRW by 2030 based on the advancement of existing businesses and the expansion of M&A effects. Researcher Song said, "The foundation of the growth strategy is diversification and advancement of autonomous driving products," and evaluated, "Through product diversification, the company aims to possess the entire product lineup related to autonomous driving, and through advancement, it expects the effect of increased number of components installed per vehicle and higher product unit prices by developing future-oriented products."

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