Business · Companies · 3 hrs ago
HL Mando forecast to miss third-quarter profit expectations
South Korean auto-parts maker HL Mando is expected to fall short of third-quarter profit expectations, according to a forecast by Shinhan Investment.
The brokerage estimates revenue of 2.44 trillion won and operating profit of 92.3 billion won, with profit down 2% from a year earlier.
Production disruptions at customers, higher parts costs and a stronger won are expected to weigh on results.
Costs for memory components at subsidiary HL Klemove also rose, while talks with customers to cover some costs were pushed into the fourth quarter.
Shinhan cut its target price to 71,000 won from 77,000 won but kept its Buy rating.
It expects profit to recover from the fourth quarter as vehicle production normalises, a Mexican plant ramps up and cost compensation is reflected.
The brokerage also sees new business in robotaxis and autonomous driving as a potential longer-term boost, citing a steering-by-wire order for Baidu.
Shinhan Investment & Securities expects HL Mando’s third-quarter operating profit to fall short of market expectations.
It estimates revenue of 2.4419 trillion won and operating profit of 92.3 billion won for the quarter.
The brokerage cited higher component costs, a stronger won and production disruptions at major customers.
It cut its target price for HL Mando to 71,000 won from 77,000 won but kept its buy rating.
Shinhan expects profit to recover from the fourth quarter, supported by normalized production and new-business orders.
- Who
- HL Mando, as assessed by Shinhan Investment & Securities.
- What
- The brokerage expects third-quarter operating profit to miss market expectations and lowered its target price.
- When
- Third quarter; the article was published on October 14, 2026.
- Where
- Not stated
- Why
- Higher component costs, a stronger won and production disruptions at major customers are expected to weigh on results.
This story does not have two clearly opposing sides.
HL Clevue faced memory component costs of 13.8 billion won.
Shinhan estimated HL Mando’s operating profit at 92.3 billion won, down 2% from a year earlier.
Shinhan expects operating profit to reach 101.3 billion won, up 27.1% year on year.
- Third-quarter revenue estimate
- 2.4419 trillion won
- Third-quarter operating profit estimate
- 92.3 billion won
- Target price
- Cut to 71,000 won from 77,000 won
- Fourth-quarter operating profit estimate
- 101.3 billion won
- Fourth-quarter year-on-year growth estimate
- 27.1%
What people are saying
Baidu-bound SBW orders show that the robotaxi business is entering the actual supply stage, not merely remaining a future concept.
Investment appeal will rise significantly when both earnings normalization in the core business and new-business orders are confirmed.