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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Eun-mi] Kiwoom Securities said HL Mando is facing limited growth prospects while trading at a relatively high valuation.
Analyst Shin Yoon-chul noted that sluggish volume growth from key automaker clients and rising costs of ADAS-related semiconductor materials—priced in U.S. dollars—are weighing on profitability. ADAS products account for roughly 10% of HL Mando’s consolidated revenue.
For the first quarter, Kiwoom Securities expects operating profit of KRW 80.4 billion, below market expectations, while revenue is projected to meet consensus at around KRW 2.3 trillion.
The firm added that HL Mando’s full-year revenue growth guidance of 1.8% remains modest, with further downside risks in the second half as subsidies for eco-friendly vehicles diminish, potentially weakening demand.
Despite these headwinds, expectations for new business in humanoid robot components—such as joint actuators—have already been priced into the stock, leading to what the analyst described as a “burdensome” valuation.
HL Mando is currently trading at a forward P/E of around 19x, even as earnings expectations are being revised downward. Kiwoom Securities maintained its target price of KRW 55,000 and a “Marketperform” rating, emphasizing the need for new client acquisitions and proven competitiveness in future growth businesses.
Alphabiz 김은미 인턴기자(kfootle@alphabiz.co.kr)
