[Infostock Daily= Reporter An Hoe Hyun] IBK Securities analyzed on the 18th that Mando, an auto parts manufacturer, improved profitability in the third quarter due to diversification of customers and expansion of sales of Advanced Driver Assistance Systems(ADAS). As a result, the company maintained its 'BUY' investment opinion and raised its target stock price by 32.43% from the previous 37,000 won to 49,000 won.
Mando recorded sales of 1.5 trillion won, operating profit of 65.6 billion won, and operating profit ratio of 4.4% in the third quarter.
"This is because fixed costs have been reduced due to increased sales due to diversification of customers, and ADAS sales have increased due to strong sales of SUVs and new cars, improving profitability," the company explained.
Mando's ADAS sales in the third quarter are 211.8 billion won, accounting for 14% of its sales, continuing its upward trend.
"We maintain our investment opinion Buy on Mando and raise the target stock price to 49,000 won," said IBK Securities, adding, "After recording a large deficit due to COVID-19 and restructuring costs in the second quarter, profitability has been improving rapidly since the third quarter, especially as the ADAS installation rate of SUV and new cars continues to increase, and the growth engine of next-generation electronic products is expected."
Reporter An Hoe Hyun ahh@infostock.co.kr
