HL Mando makes the core chassis components a car needs to roll, stop and turn - brakes, steering and suspension - and is extending into autonomous driving through camera- and radar-based ADAS, with a demand base that stays firm regardless of whether cars are electric or combustion-powered. Q1 2026 confirmed an earnings recovery with operating profit up 18% and net profit up 53%, revenue has grown to ₩9.5 trillion, and an April corporate-bond issuance secured funding for growth investment. The point worth watching is that the forward P/E is lower than peers and the 0.85x P/B makes the stock cheap relative to asset value, so it is strong if the earnings improvement carries through the full year and ROE (currently 3.7%) recovers, but it can weaken if the recovery stalls after Q1 or if borrowing costs mount on top of a 157% debt ratio.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 6.9% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 1.8% higher than a year earlier.
- ROE is 3.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.8%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder HL Holdings 30.25% (corporate)
Controlling bloc incl. related parties 30.26%
With the controlling bloc holding 30%, the ownership structure is stable.
🔎 In-depth analysis
- HL Mando makes the core chassis components a car needs to roll, stop and turn.
- Its big revenue pillars are brakes (braking), steering and suspension, to which it adds ADAS (advanced driver-assistance systems) that use cameras and radar to help with lane keeping and automatic emergency braking, expanding the business into autonomous driving.
- Customers span widely - centered on Hyundai Motor and Kia and extending to automakers in North America, China and India - so revenue is not tied to any single account.
- Above all, because these components go into cars regardless of whether they are electric or combustion-powered, the demand base is relatively firm even through the electrification transition.
- The latest close is ₩48,350 and market capitalization is ₩2.3 trillion.
- The price sits below its 20-day moving average (₩55,642) and below its 60-day line (₩56,464).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 41.6, a neutral level.
- The one-month change is -3.9%, the three-month change is +1.1%, and the price sits -37.1% from its 52-week high.
- Relative strength versus the KOSPI is 44 (on a 1-99 scale that weights recent returns against the index over the past year more heavily toward the recent period; higher means stronger than the market), placing it in roughly the top 56% of all stocks by strength.
- Over the past three months it lagged the index by 23.5%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- On a confirmed full-year FY2025 basis the P/E ratio (how many times a year's profit the share price represents) is 22.70x.
- That looks high against the sector median, but the figure divides by a 'trough profit' - net profit that fell 23% last year - so it creates a strong illusion of being more expensive than it is.
- For a stock whose earnings are rising again, the forward basis (future earnings) reflecting this year's profit is closer to the true picture than last year's trailing (most recent 12 months confirmed) P/E.
- The forward P/E is actually lower than close peers Hyundai Mobis (about 13x) and Hyundai Wia (about 17x), which reads as an undervaluation signal.
- The P/B (how many times net assets the share price represents) is 0.84x, a level below net assets, and on a forward basis it falls further to 0.81x.
- The debt ratio (borrowings relative to equity) is 157%, within the average range for parts manufacturers.
- That said, ROE (how much is earned per year on equity) is 3.7%, below the sector average (about 7%), so whether capital efficiency rises along with the earnings recovery is a point to confirm.
- In sum, whether viewed by asset value (P/B) or this year's earnings (forward P/E) the price is on the cheap side, and the remaining task is the durability of the profitability recovery.
- The top line has grown steadily.
- Revenue rose from ₩8.4 trillion in 2023 to ₩9.5 trillion in 2025, and the pace picked up, with 6.9% growth in the last year alone.
- Last year's weak spot was earnings: operating profit was almost flat at ₩357.1 billion in 2025 (-0.5%), and net profit fell 23%, from ₩130.0 billion to ₩100.0 billion.
- It was a year in which revenue grew but profit failed to keep up.
- In Q1 2026, though, the trend clearly shifted.
- Revenue was modest at ₩2.31 trillion (+1.8%), but operating profit jumped to ₩93.6 billion (+18.2%) and net profit to ₩53.1 billion (+53.2%).
- Double-digit profit growth on virtually flat revenue means unit pricing improved and costs were contained, so profitability itself got better.
- It is a recovery phase in which last year's depressed earnings return to a normal track, so this year's forward earnings clearly sit above last year's trailing figure.
- As long as there are cars, demand for chassis components continues, and with new models from Hyundai Motor and Kia plus overseas supply to North America and India underpinning revenue, there is little reason for the earnings improvement seen in Q1 to be a one-off.
- This year's disclosure flow can be summed up as 'earnings confirmation' and 'funding.' A consolidated preliminary-results fair disclosure on April 29 signaled that Q1 profit had improved by more than double digits, and the May 15 quarterly report confirmed those figures in formal financial statements.
- Also in April, a corporate-bond issuance and a securities-issuance results report followed, showing the company secured funds needed for growth investment and working capital through external borrowing.
- As this borrowing adds on top of a 157% debt ratio, the interest burden and financial capacity should be watched together.
- On April 27 a notice of an investor presentation (IR) was issued, opening a channel for the company to explain the background of its Q1 results and business direction directly to investors, and on June 1 a corporate governance report was disclosed, adding material to review the operation of the board and shareholder rights.
- This stock's strengths are clear.
- It makes chassis components that are essential as long as there are cars, revenue has grown steadily to ₩9.5 trillion, and Q1 2026 confirmed an earnings inflection with operating profit up 18% and net profit up 53%.
- On price too, unlike the trailing P/E that looks high because of last year's trough profit, the forward P/E reflecting this year's earnings is lower than close peers and the P/B is 0.85x, below net assets.
- Whether viewed by asset value or this year's earnings, the stock is on the cheap side.
- The point to watch alongside is the durability of profitability.
- With ROE at 3.7%, still below the sector average, it needs confirmation that capital efficiency rises with the earnings recovery, and with a 157% debt ratio plus the bond issuance, financial capacity is also a subject to check.
- Taken together, it is strong if the improvement that began in Q1 carries through the full year and ROE recovers alongside, letting the low forward valuation find its fair worth, and weak if the recovery stalls after Q1 or the borrowing burden grows.
🔎 Valuation vs peers Inconclusive
We compared domestic automaker suppliers of automotive chassis and drivetrain components whose business character is close and whose data can be confirmed.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Mobis | 11.54x | 0.86x | 7.44% |
| Hyundai Wia | 16.31x | 0.45x | 2.74% |
| Hankook Tire & Technology | 8.04x | 0.72x | 9.00% |
| Hanon Systems | — | 0.97x | -5.27% |
By peer position, HL Mando looks expensive on trailing P/E alone, but that is the result of a temporary dip in last year's earnings. Given that Q1 operating profit rose 18% and net profit 53%, the forward burden falls sharply. Approximating this year's net profit at about ₩181.2 billion using three years of seasonality from DART-confirmed quarterly results brings the forward P/E down (an approximation, not an official company outlook). Asset value (P/B 0.89x) is at a discount to peers, while capital return (ROE 3.7%) is inferior to peers, so the directions conflict. Until it is confirmed whether the earnings recovery firms up on an annual basis, we cannot definitively call the stock undervalued or overvalued, so we leave it inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩2.4 trillion | approx. ₩111.8 billion | approx. ₩38.6 billion |
Price history Close · MA20 · MA60
The latest close is ₩48,350 and the market capitalization is ₩2.3 trillion. The price sits below its 20-day moving average (₩55,642) and below its 60-day moving average (₩56,464). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.6, a neutral level. The one-month change is -3.9%, the three-month change is +1.1%, and the position relative to the 52-week high is -37.1%. Relative strength versus the KOSPI is 44 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 44% of all stocks. Over the past three months it lagged the index by 23.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -23.50% / 6M -46.61% / 12M -40.79%
Key metrics vs sector median
Valuation
The P/E of 22.70x is above the sector median (7.76x). The P/B of 0.84x is above the sector median (0.56x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.7%, below the sector average (7.0%). The operating margin is 3.8%. The debt ratio is 157.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.6B | $5.9B | $6.3B | +6.86% ↑ faster |
| Operating profit | $185.1M | $237.8M | $236.7M | -0.46% ↓ slower |
| Net profit | $89.9M | $86.1M | $66.3M | -23.01% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.1B | $5.0B | $5.6B | $5.9B | $6.3B |
| Operating profit | $154.0M | $164.4M | $185.1M | $237.8M | $236.7M |
| Net profit | $110.8M | $65.1M | $89.9M | $86.1M | $66.3M |
| Revenue CAGR | 4-yr avg 11.36% | ||||
Revenue rose 6.9% year over year (2023 ₩8.4 trillion → 2024 ₩8.8 trillion → 2025 ₩9.5 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 0.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.4%. The two-year revenue CAGR is 6.1%. In the most recent quarter (Q1 2026), revenue was 1.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-29EarningsQ1 2026 consolidated preliminary-results fair disclosure - revenue ₩2.31 trillion, operating profit ₩93.6 billion (+18.2%), net profit ₩53.1 billion (+53.2%), an earnings improvementShort term: the first quarterly recovery signal after last year's weak earnings, lowering the valuation burden on a forward basis. Mid term: the key is whether this improvement carries through the full year. Source
- 2026-05-15FilingQ1 2026 quarterly report - confirming the preliminary figures in formal financial statementsShort term: confirms the reliability of the preliminary figures. Mid term: the first official material to review cumulative profit and loss, cash flow and borrowing structure. Source
- 2026-04-29FilingSecurities-issuance results report - reporting the outcome of funding from the completed corporate-bond issuanceShort term: secures funds for growth investment and working capital. Mid term: the interest burden and financial capacity added on top of the 157% debt ratio should be watched together. Source
- 2026-04-27IRNotice of an investor presentation (IR) - the company announcing its schedule to communicate directly with investorsShort term: a channel for the company to explain directly the background of its Q1 results and business direction. Mid term: a route to confirm its official outlook and strategy. Source
- 2026-06-01FilingCorporate governance report - reporting on the operation of governance including the board and shareholder rightsShort term: little direct impact on profit and loss. Mid term: a supplementary material for gauging shareholder returns and decision-making transparency. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-29Earnings disclosure
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-29Disclosure
- 2026-04-28Disclosure
- 2026-04-27Disclosure
- 2026-04-27Disclosure
- 2026-04-23Disclosure
- 2026-04-23Amended filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.