[Edaily Reporter PARK MIN ] On the 11th, Daol Investment & Securities projected that HL Mando(204320)would continue to see revenue growth in the second half of the year, particularly in India and Europe, and maintained its target price of 84,000 won and “Buy (BUY)” investment rating.
In a report released that day, Yoo Ji-woong, an analyst at Daol Investment & Securities, stated, “The second-quarter earnings began to reveal differentiated growth drivers in Europe and India,” adding, “The company’s regional mix, which has traditionally been concentrated in North America and China, has begun to diversify into global growth drivers.”
HL Mando’s second-quarter revenue this year reached 2.4953 trillion won, a 3.9% increase year-over-year. Operating profit rose 2.8% to 107 billion won, with an operating margin of 4.3%. Compared to the company’s own forecast, revenue fell short by 1.0%, but operating profit exceeded the forecast by 3.6%. Compared to the market consensus, revenue exceeded expectations by 1.3% and operating profit by 5.6%.
HL Mando’s improved second-quarter performance was driven by sales growth in India and Europe. Second-quarter sales in Europe rose 17% to 237.2 billion won, while sales in India increased by 18%. Sales in China also rose by 10%, demonstrating balanced growth across major overseas markets.
In India, in particular, analysts attribute the revenue growth to the expansion of the local automotive market, coupled with increased sales by major automakers, including HyundaiMotor(005380). In China, rising order volumes from global electric vehicle manufacturers, along with growing local demand for high-performance computing (HPC), contributed to the strong results.
Daol Investment & Securities forecasts that this growth trend, centered on overseas markets, will continue in the second half of the year. The firm projected HL Mando(204320)’s third-quarter revenue at 2.56 trillion won, a 10.3% increase year-over-year. Operating profit is expected to rise by 8.7% to 102.4 billion won.
HL Mando’s robotics-related business is also cited as a medium- to long-term growth driver. The company is in discussions with North American robotics firms and plans to make phased investments in the robot actuator sector in response to increased orders. It is considering a total investment of approximately 200 billion won over the medium to long term, starting with an initial investment in the 100 billion won range, followed by a subsequent 100 billion won investment.