[Infostock Daily= Reporter An Hoe Hyun] SK Securities raised its investment opinion 'Buy' and target stock price to 90,000 won for Mando, saying it should pay attention to favorable changes in the automobile industry.
"Sales in the fourth quarter of last year are expected to rise 2.7% year-on-year to 1.68 trillion won, operating profit to rise 49.7% to 96.3 billion won and net profit to grow 394.9% to 71.8 billion won," the company analyzed, adding, "The increased selection of options and improved mix at domestic plants, recovery and restructuring effect of local companies in China, increased production in India and strong sales of electric vehicles by new customers seem to have played a positive role."
"The possibility of a reduction in production due to a short-term surge in stock prices, high valuation and supply and demand of semiconductors for vehicles is clearly a burden factor," the company explained, adding, "Considering that the production of relatively profitable models is likely to continue and the continued expansion of new customer models volume, the impact on performance is expected to be limited."
"Major customers, Geely Automobile's business partnership with BaiduㆍFoxconn and Tencent, changes in cooperative relations and the possibility of consignment production are factors that we can expect to expand Mando's customer and business area," the company explained.
Reporter An Hoe Hyun ahh@infostock.co.kr
