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JONBUR Research · Initiation

HL Mando · 204320 · Auto parts

HL Mando: Shares Fall 14.2% in a Month as Multiples Sit Below Model Fair Value Range

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

HL Mando closed at ₩42,700 on 2026-10-12, down 14.2% over one month but up 30.0% over one year, with a market cap of about ₩2.0T. Trailing profit margins are thin at 3.9% operating and 1.8% net, while the simple model's base fair value of ₩69,532 sits above the current price.

Written Oct 13, 2026 · Data as of Oct 12, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a steadily growing auto parts supplier with low margins and a leveraged balance sheet. Revenue has risen every year shown, from ₩6.1T in 2021 to ₩9.5T in 2025, and the trailing twelve months to H1 2026 reached ₩9.6T. Free cash flow is positive at ₩257.2B.

What the data does not show is margin expansion. Operating margin has stayed in a 3.3% to 4.1% range, and ROE is 6.2%. The share price is 46.0% below its 52-week high of ₩79,100 but 32.8% above the low of ₩32,150. Investor flow, foreign ownership, short balance and news data are not available, so we cannot say who has been driving the recent decline.

Business overview

HL Mando is listed on KOSPI in the auto parts sector. It was founded on 2014-09-02 and listed on 2014-10-06, with 46,957,120 shares listed and a CEO named in the data as 조성현. Market cap is ₩2.0T and enterprise value is ₩3.0T.

Among the peers in the data, Hyundai Mobis is far larger at ₩33.0T, while SL (₩2.2T), Kumho HT (₩1.5T), Samhyun (₩1.4T) and Hyundai WIA (₩1.4T) are similar in size or smaller. No product or customer detail is available in the data.

Financial analysis

These figures come from filed financial statements (DART). Revenue grew 22.3% in 2022, 11.7% in 2023, 5.4% in 2024 and 6.9% in 2025, reaching ₩9.5T. Operating income was ₩357.1B in 2025 (3.8% margin) versus ₩358.8B in 2024 (4.1%).

Net income was ₩100.0B in 2025, down from ₩129.9B in 2024 and ₩167.1B in 2021. Trailing twelve months to H1 2026: revenue ₩9.6T, operating income ₩374.4B (3.9%), net income ₩169.1B (1.8%), ROE 6.2%.

The balance sheet carries liabilities of 142.6% of equity, borrowings of ₩1.8T against cash of ₩825.2B, leaving net debt of about ₩952.9B. Free cash flow is ₩257.2B.

Valuation

At ₩42,700 the stock trades at a P/E of 11.9, a P/B of 0.7 and a P/S of 0.2, with a dividend yield of 1.8%. EV/EBITDA is not available. At the end of 2025 the P/E was 27.6 and the P/B was 1.0, so the current multiples are lower than that year-end reading; earlier year-end multiples are not available.

Among peers with data, Hyundai Mobis has a P/E of 9.1 and a P/B of 0.6, and SL has 5.8 and 0.8. HL Mando's P/E is higher than both, while its P/B is between them. Other peers have no multiples in the data.

Our simple 5-year discounted cash flow model (7.9% growth, 9.0% discount rate, starting free cash flow ₩253.2B, net debt ₩952.9B) gives a fair value of ₩51,546 in the bear case, ₩69,532 in the base case and ₩94,268 in the bull case. The current price is below all three, 17.2% under the bear case. The model is sensitive to its assumptions and is not a forecast.

Catalysts

  • A cluster of insider shareholding reports was filed on 2026-10-06, 2026-10-07 and 2026-10-08, which may show changes in insider holdings, though the data does not give details.
  • The half-year report for June 2026 was filed on 2026-08-14 along with amended preliminary consolidated earnings, showing trailing operating income of ₩374.4B.
  • Trailing free cash flow of ₩257.2B could support debt reduction or shareholder returns, though no plans are in the data.
  • The sharp 14.2% one-month decline may draw attention to whether earnings or flows explain the move, but no news headlines are available.

Risks

  • Thin margins of 3.9% operating and 1.8% net leave little buffer if costs rise or revenue growth slows.
  • Borrowings of ₩1.8T and liabilities at 142.6% of equity make earnings sensitive to financing costs.
  • Net income fell to ₩100.0B in 2025 even as revenue grew 6.9%, so growth has not reliably reached the bottom line.
  • The share price fell 14.2% in one month and 10.3% in three months, showing high volatility within a 52-week range of ₩32,150 to ₩79,100.
  • Investor flow, foreign ownership, short interest and news data are unavailable, which limits visibility into market positioning.

Closing view

The evidence is mixed. Consistent revenue growth, positive free cash flow and multiples below the prior year-end level and below the model's fair value range point to a lower-priced stock relative to its own fundamentals. Against that, low margins, modest returns on equity, meaningful net debt and a recent sharp price drop with no explanatory flow or news data argue for caution. The model range is an illustration based on simple assumptions, and the gap to the current price does not indicate how the shares will move.

Model estimate of fair value

Bear
₩51,546
+40%
Base
₩69,532
+89%
Bull
₩94,268
+157%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

A simple 5-year discounted cash flow from filed statements (H1 2026): revenue growth 7.9% fading to 2%, discount rate 9%. Per share, not a price target. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)HL Mando: Shares Fall 14.2% in a Month as Multiples Sit Below Model Fair Value Range

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information