[Infostock Daily= Reporter An Hoe Hyun] eBEST Investment & Securities raised its target stock price from 90,000 won to 110,000 won on the 4th, saying it is expected to reassess Mando's global order capacity this year, while maintaining its 'Buy' investment opinion.
Mando's sales in the fourth quarter of last year rose 6.3% year-on-year to 1.74 trillion won and operating profit rose 27.9% to 80.4 billion won, respectively.
"Although operating profit fell short of market expectations, operating profit of about 95.4 billion won was generated considering that the one-off allowance for bad debts(about 15 billion won) incurred by Ssangyong Motor and Brilliance Auto was reflected," the company explained, adding, "By region, the improvement in margins in the domestic, Indian and Chinese markets expanded following the previous quarter."
Mando announced on the 3rd that it will acquire Mando-Hella Electronics(MHE), a company specializing in autonomous driving and electronic equipment parts.
"Mando will enter the global advanced driver assistance systems(ADAS) market through this acquisition," the company explained, adding, "It is planning to expand its development capabilities and diversify its product lines by collaborating with 140 existing MHE Research and Development(R&D) personnel."
"Customers' diversification will accelerate," the company predicted, adding, "The acquisition of the stake will allow Mando to start winning orders in earnest in addition to products that include all MHE-based technologies that have been restricted, which will highlight its growth potential."
Reporter An Hoe Hyun ahh@infostock.co.kr
