[Click e-Stock] "HL Mando to Expand Role in Robotics Industry... Target Price Raised"

On November 25, Daol Investment & Securities maintained its "Buy" rating on HL Mando, stating, "As the robotics industry begins to blossom in Korea, a re-evaluation of companies specializing in motors and actuators has started." The firm also raised its target price from 55,000 won to 63,000 won.

On this day, Yoo Jiwoong, a researcher at Daol Investment & Securities, commented, "The valuation is at a level that does not pose a burden even if you follow the trend," expressing this view.

HL Mando produces electrification components such as steering and control systems, which are composed of motors and actuators, for the automotive industry. Researcher Yoo stated, "As a core value chain partner for Hyundai Motor Group, HL Mando’s role is set to expand as the group embarks on contract manufacturing for robotics." He further analyzed, "In particular, the likelihood of HL Mando participating in key humanoid robot components, such as fingers, sensors, and joints, is increasing."

He continued, "Recently, in China, Unitree passed a preliminary review for an IPO at a valuation of around 10 trillion won," adding, "The formation of value chains across the industry, both inside and outside China, is expected to accelerate."

For next year, the company forecasts operating profit to reach 448 billion won, up 15.1% from this year. Researcher Yoo explained, "Starting from the first quarter of next year, when Kia’s U.S. production volume is expected to surge, the volume of automotive parts will structurally increase." He added, "With performance drivers such as rebates in the fourth quarter of this year likely to continue, it is possible to increase holdings early."

He also pointed out, "The current share price is trading at a price-to-earnings ratio (PER) of about 6.5 times based on next year’s earnings. Despite recent share price volatility, the improved profit and loss since the second quarter of this year is a decisive factor accelerating the expansion of the valuation."

Researcher Yoo added, "Typically, electric power steering motors for automobiles are estimated to be installed in robots as actuators with similar specifications, and the number of units installed could be seven to eight times higher." He continued, "HL Mando possesses high natural entry barriers due to its large-scale mass production capabilities both domestically and internationally."

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