EBest Investment & Securities raised its target stock price to 98,000 won from 80,000 won on the 8th, predicting that signs of easing short-term earnings concerns and improving fundamentals in the second half of the year will become a reality. The investment opinion remained 'buy'.
Ebest Investment & Securities predicted that uncertainties such as weak external growth of major customer companies in Mando will disappear and expectations for profit recovery will grow again as it enters the second half of the second quarter.
Operating profit for the second quarter is expected to be 78.4 billion won, which is expected to turn into a surplus compared to the same period last year. Sales are expected to reach 1.571 trillion won, up 55.0 percent from the second quarter of last year.
In particular, Ebest Investment & Securities predicted that Mando's performance improvement momentum will be concentrated from the second half of this year. "We expect high margin sales to recover due to a full-fledged increase in global production by U.S. electric vehicle manufacturers and increased sales of integrated control device (DCU)-based driver support system (ADAS) due to production normalization of platform (E-GMP) exclusively for electric vehicles by Hyundai Motor and Kia," said Ebest Investment & Securities "We expect the quarterly margin recovery to begin in earnest due to the effect of the merger of Mando Hella.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
