[Market Highlight] HL Mando Jumps 8% on Profitability Demonstration

On November 28, HL Mando showed strong performance in early trading. Despite the impact of U.S. tariffs, the company recorded solid results, and with its upcoming robotics roadmap presentation, investor attention appears to be intensifying.

As of 9:25 a.m. on this day, HL Mando was trading at 46,600 won, up 3,500 won (8.12%) from the previous trading day.

In the third quarter, HL Mando posted sales of 2.3213 trillion won and operating profit of 94.1 billion won, representing increases of 7% and 14%, respectively, compared to the same period last year. Excluding the impact of tariffs, the third-quarter operating margin stands at 4.9%, or approximately 115 billion won, marking the highest quarterly operating profit in the company's history.

For the fourth quarter, more than 50% tariff compensation is expected, and ongoing operational efficiency improvements are projected to further enhance performance.

Lee Sanghyun, a researcher at BNK Investment & Securities, stated, "The impact of U.S. tariffs amounted to about 20 billion won in the third quarter, with a cumulative total of about 30 billion won for the year so far. However, HL Mando is working to meet USMCA requirements at its Mexico plant and is in the process of settling with clients. Through client settlements in the fourth quarter, the company expects to recover more than 50% of the tariff impact."

HL Mando plans to share its robotics investment plans in December. Lee added, "It is understood that sales of actuators for quadruped robots have already begun. In the future, we expect the sourcing of actuators for humanoid robots within Hyundai Motor Group to be diversified."

BNK Investment & Securities raised its target price for HL Mando to 56,000 won and maintained a 'buy' recommendation.

Lee explained, "Despite global uncertainties, HL Mando has maintained sales growth centered on the Americas. Even as the impact of tariffs became pronounced, the company has protected profitability through production stabilization and operational efficiency improvements at its Mexico and Poland subsidiaries. In North America, HL Mando secured its largest-ever order by being the first to supply steering solutions (IPS) for major OEMs' next-generation EV platforms, demonstrating its technological leadership in steering and expanding its customer portfolio through long-standing partnerships."

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