HL Mando(204620) surged more than 9% intraday on November 28 amid expectations that shipments of automotive components supplied to North America will increase.
As of 9:44 a.m., HL Mando was trading at 47,050 won on the KOSPI, up 3,950 won (9.16%) from the previous session. The stock also touched 47,800 won during the session, marking its highest level in a year.
The strong performance is attributed to analyst assessments that shipments of key components supplied to U.S. automakers are expected to rise meaningfully starting next year.
Lee Sang-su, analyst at iM Securities, noted that “HL Mando invested about 250 billion won in capex to expand its Mexico plant by the end of 2024, and this will help boost shipments of its Integrated Dynamic Brake system (IDB2) to North America from 2026.”
He added, “Although concerns remain over slowing U.S. electric vehicle demand, compensation programs are already in place should project delays occur. IDB2 is used not only in EVs but also in hybrid vehicles, which helps mitigate risk even if EV demand softens.” He also said shipments of the company’s rack-type electric power steering (REPS) components supplied to North American EV manufacturers are expected to grow as lower-priced models enter mass production.
Growth in emerging markets such as China and India is also seen as supporting the share price. “Despite Hyundai Motor Group’s declining market share in China, HL Mando maintains major local OEMs as core customers, and the proportion of electronic components has expanded to 60–70%,” Lee explained. He added that HL Mando also supplies major OEMs in India, where automotive consumer sentiment is recovering.
The company’s progress in developing actuators for humanoid robots is another cited positive. “HL Mando is highly likely to directly design and assemble actuators, supplying them as finished components,” Lee said, noting that while other robotics units such as HL Robotics exist within the group, HL Mando is expected to play the central role in commercializing actuators for humanoid robots.
HL Mando(204620) surged more than 9% intraday on November 28 amid expectations that shipments of automotive components supplied to North America will increase.
As of 9:44 a.m., HL Mando was trading at 47,050 won on the KOSPI, up 3,950 won (9.16%) from the previous session. The stock also touched 47,800 won during the session, marking its highest level in a year.
The strong performance is attributed to analyst assessments that shipments of key components supplied to U.S. automakers are expected to rise meaningfully starting next year.
Lee Sang-su, analyst at iM Securities, noted that “HL Mando invested about 250 billion won in capex to expand its Mexico plant by the end of 2024, and this will help boost shipments of its Integrated Dynamic Brake system (IDB2) to North America from 2026.”
He added, “Although concerns remain over slowing U.S. electric vehicle demand, compensation programs are already in place should project delays occur. IDB2 is used not only in EVs but also in hybrid vehicles, which helps mitigate risk even if EV demand softens.” He also said shipments of the company’s rack-type electric power steering (REPS) components supplied to North American EV manufacturers are expected to grow as lower-priced models enter mass production.
Growth in emerging markets such as China and India is also seen as supporting the share price. “Despite Hyundai Motor Group’s declining market share in China, HL Mando maintains major local OEMs as core customers, and the proportion of electronic components has expanded to 60–70%,” Lee explained. He added that HL Mando also supplies major OEMs in India, where automotive consumer sentiment is recovering.
The company’s progress in developing actuators for humanoid robots is another cited positive. “HL Mando is highly likely to directly design and assemble actuators, supplying them as finished components,” Lee said, noting that while other robotics units such as HL Robotics exist within the group, HL Mando is expected to play the central role in commercializing actuators for humanoid robots.