Hanwha Investment & Securities proposes a target price of 91,000 won in Mando
Operating profit is forecast to increase by 264% year-on-year to 324 billion won
Enhancement of expandability in Europe following the success of the Volkswagen 1.4 trillion order
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Mando (204320)Has succeeded in winning an order for suspension products worth about KRW 1.4 trillion from Volkswagen (hereinafter referred to as VW), an analysis that this year’s earnings will improve significantly. Hanwha Investment & Securities maintained a target price of KRW 91,000 for Mando and a rating of’Buy’, respectively.
On the 23rd, Hanwha Investment & Securities predicted that Mando will record 6,216 trillion won in sales and 324 billion won in operating profit this year as Mando is striving to win VW orders and expand expandability in Europe. This is an increase of 11.72% and 264.04%, respectively, compared to the previous year. Park Joon-ho, a researcher at Hanwha Investment & Securities, estimated that “Mando will receive a total of 50 million suspension parts orders from VW, resulting in an estimated annual sales of around 130 billion won.” He added, “As of last year, the proportion of VW sales in Mando was less than 1%, and the supply was focused on brake parts, but through this order, the items were expanded to suspension systems, and supply began as a core platform of VW rather than a single model,” he added. It is analyzed that it can be seen as an increase in the size of the chassis business in Europe, even considering the volume of the European plant for electric vehicles in North America previously ordered.
Researcher Park identified Mando’s order as “a result of outsourcing as VW plans to use one of its chassis factories in Germany for its own production of battery cells.”
/ Reporter Jung Hye-jin [email protected]
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