KOSPIAutomotive204320

HL Mando

₩47,250▲ 1.18%2026-10-02 close

Market Cap

₩2.2T

Turnover

₩6.7B

Volume

140,000 shares

Shares out.

47M

PER

13.5×

PBR

0.8×

EPS

₩3,601

Dividend Yield

1.55%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩750 per share · Prices as of the 2026-10-02 close

Report overview

Electronics at 66% Carries the Core; Robotics Still in Validation

HL Mando has grown revenue and profit despite flat global vehicle output by shifting its brake, steering and suspension mix toward electronically controlled products, while the robot actuator business that draws market attention has yet to show confirmed orders or mass production.

1
Second quarter 2026 revenue reached KRW 2,495.3bn with operating profit of KRW 107.0bn, a record quarterly top line, and the company said its operating margin held at 4.3%.
2
Electronic products accounted for 66% of second quarter revenue, and 71% of the KRW 5.8tn in new orders booked in the first half were electronic braking, steering, suspension and ADAS items.
3
The company disclosed that first half bookings filled 44% of the KRW 13tn annual order target, with an order backlog of KRW 59tn as of end June.
4
China, India and Europe drove growth while Korea and the Americas declined, so the diversified customer and regional base acted as a buffer.
5
The humanoid robot actuator line is at the master model development and customer discussion stage; under the roadmap the company presented, orders and mass production are matters for 2027 and beyond.

Business structure

HL Mando develops and produces chassis components tied directly to vehicle safety and driving, namely braking, steering and suspension systems. It runs plants in Pyeongtaek, Wonju and Iksan and an R&D center in Pangyo, and also operates numerous overseas production sites and research centers.

The center of gravity has shifted from mechanical single parts toward electronic control: by combining electronic control functions with braking and steering parts and widening the scope to system level, products such as electronic parking brakes, regenerative braking and electronic braking systems entered mass production, and the company's role expanded into control logic design.

Flagship lines include the integrated dynamic brake IDB2 and rack-drive electric power steering R-EPS, and the expansion of these electronic products lifted their share of revenue to 66% in the second quarter of 2026.

Autonomous driving affiliate HL Klemove handles ADAS parts such as radar and cameras, giving the group braking, steering and sensing under one roof.

The customer base is diversified, spanning Hyundai Motor and Kia, North American automakers and emerging market brands in China and India, and second quarter 2026 revenue by region was Americas KRW 655.5bn (26%), China KRW 534.4bn (21%), India KRW 265.7bn (11%) and Europe KRW 237.2bn (10%).

That said, revenue from electronically controlled products is tallied within the existing chassis segment and the control business is not disclosed as a separate axis, making it hard for outsiders to quantify the pace of the strategic shift.

The competitive field includes global chassis and braking majors such as Bosch, ZF and Continental alongside domestic peer Hyundai Mobis, with the speed of electrification in brakes and steering deciding share.

Earnings trend

Quarterly revenue · Operating profit

₩2.4T₩104.1B25Q2₩2.3T₩94.2B25Q3₩2.5T₩79.7B25Q4₩2.3T₩93.6B26Q1₩2.5T₩107B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩7.5T₩248.1B2022₩8.4T₩279.3B2023₩8.8T₩358.8B2024₩9.5T₩357.1B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩2.4T	₩104.1B	4.3%
2025Q3	₩2.3T	₩94.2B	4.1%
2025Q4	₩2.5T	₩79.7B	3.2%
2026Q1	₩2.3T	₩93.6B	4.0%
2026Q2	₩2.5T	₩107B	4.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩7.5T	₩248.1B	₩98.3B	3.3%	4.6%	157.1%
2023	₩8.4T	₩279.3B	₩135.6B	3.3%	6.1%	166.8%
2024	₩8.8T	₩358.8B	₩129.9B	4.1%	5.2%	163.8%
2025	₩9.5T	₩357.1B	₩100B	3.8%	3.7%	148.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The multi-year pattern combines gradual top line expansion with thin margins.

Revenue rose for three straight years from KRW 7,516.2bn in 2022 to KRW 8,393.1bn in 2023, KRW 8,848.2bn in 2024 and KRW 9,454.8bn in 2025, while operating profit moved from KRW 248.1bn to KRW 279.3bn, KRW 358.8bn and then slipped slightly to KRW 357.1bn in 2025.

The operating margin climbed from 3.3% in 2022 and 2023 to 4.1% in 2024 before easing back to 3.8% in 2025. Net profit attributable to owners of KRW 135.6bn in 2023, KRW 129.9bn in 2024 and KRW 100.0bn in 2025 lagged the operating profit trend, indicating heavy volatility in non-operating items.

On a quarterly basis, operating profit bottomed at KRW 79.7bn in the fourth quarter of 2025 (a 3.2% margin), then recovered to KRW 93.6bn in the first quarter of 2026 and KRW 107.0bn in the second, while second quarter 2026 revenue of KRW 2,495.3bn was the largest figure in the quarters shown.

The unusually large swing in net profit came from currency effects: the company booked a foreign exchange loss of KRW 37.1bn in the second quarter of 2025 but a gain of KRW 4.3bn in the same quarter of 2026, and net profit attributable to owners widened from KRW 4.5bn to KRW 53.6bn over that span.

One-off items were also in the mix; Korea Investment and Securities noted in an April 2026 report that a roughly KRW 10bn one-off gain in the first quarter was compensation for lower than planned electronic parking brake volumes, while about KRW 19bn of tariff costs were offset by carried-over refunds from the prior year, limiting the earnings impact.

The balance sheet has been trending better, with the debt-to-equity ratio falling from 166.8% in 2023 to 163.8% in 2024 and 148.2% in 2025, and operating cash flow swinging from negative in 2022 to KRW 429.4bn in 2023, KRW 434.7bn in 2024 and KRW 720.9bn in 2025.

Still, with an operating margin near 4% on a revenue base above KRW 9tn, profit remains driven more by product mix than by volume.

Industry analysis

The downstream vehicle market looks closer to stagnation than growth. In 2025 the global auto market recorded 91.94 million units on an Asia-led recovery, while Korea reached about 1.68 million units.

Volume conditions stayed unfriendly into 2026, with Korea Investment and Securities noting in an April 2026 report that global automaker output fell 3.4% year on year in the first quarter.

In such a phase, supplier earnings hinge on content per vehicle and mix rather than volume, which is precisely why HL Mando has been raising the weight of electronically controlled products such as IDB2 and R-EPS.

The tariff backdrop has eased somewhat; Meritz Securities estimated in an April 2026 note that with the auto product tariff cut from 25% to 15% and the reciprocal tariff from 15% to 10%, the 2026 annual tariff impact should shrink versus 2025 to around USD 11.5m.

Regionally, India is a new swing factor, as the start-up of a new plant in Pune and the Indian government's move to mandate ADAS features such as autonomous emergency braking are lifting related component demand.

China is the most competitive market, yet Korea Investment and Securities said in July 2026 that "most Korean suppliers withdrew from China, but HL Mando succeeded in localizing".

On the new business side, robot components carry high growth expectations: research firm Valuates Reports projects the global humanoid robot actuator market to expand from USD 150m in 2024 to USD 9.864bn in 2031, though this remains an estimated market with supplier selection still under way.

Outlook

The direction management has laid out is moderate growth plus rebuilt earnings power. HL Mando guided to consolidated 2026 revenue of around KRW 9,623.3bn, and in February 2026 said it targets revenue of KRW 14.1tn by 2030.

Order intake is progressing: first half bookings of KRW 5.8tn filled 44% of the KRW 13tn annual target, with backlog at KRW 59tn as of end June.

By customer, first half new orders were 36% Chinese automakers, 33% Hyundai and Kia, 14% Indian makers, 12% North American makers and 5% European and others, with 71% of the total in electronic braking, steering, suspension and ADAS products.

For the second half, the company said it should comfortably reach the annual revenue target of more than KRW 9.6tn set at the start of the year. New business milestones are also scheduled.

The e-Hatch sensor, which detects arcing and overheating behind electrical fires, is slated to enter mass production from the second half, and in software the company targets 10 proof-of-concept projects and six mass production cases this year.

For robot actuators, a December 2025 investor event laid out a phased roadmap of completing a master model by the second half of 2026, winning orders in 2027 and starting mass production in 2028, and the company is reviewing phased investment of roughly KRW 100bn to 200bn on land already secured to serve North American customers and build early production capability.

In India, HL Klemove plans to sell a 30% minus one share stake in its Indian subsidiary to local supplier Gabriel India for about USD 98.44m to broaden local partnership.

Valuation

PER

13.5×

PBR

0.8×

ROE

6.5%

EPS

₩3,601

BPS

₩62,683

Dividend per share

₩750

The shares trade below the book value of net assets, while the sum of the last four quarters of net profit attributable to owners exceeds the full-year 2025 figure, meaning profit has moved in a recovering direction. Market views diverge.

Korea Investment and Securities kept a Neutral rating in an April 2026 report, saying "the valuation burden is large," yet the same house said in late July 2026 that it was raising its rating from Neutral to Buy and its target price to KRW 52,000 on the strength of the China business.

Hana Securities said in a July 15, 2026 report that it maintained a Buy rating and a target price of KRW 69,000.

The core of the multiple debate is how much of the robot business is embedded: Meritz Securities compared in a June 2026 note that the 2026 average price-earnings multiple for the auto parts sector is 12.9 times versus 103.5 times for robot components, and projected that if the order is confirmed, robot component value would be added on top of the existing vehicle parts business.

Dividends are paid annually but the payout is modest relative to earnings, so the yield sits on the lower side among large Korean dividend payers. Ultimately, how one reads the current multiple depends on whether the core operating margin holds around 4% and whether robot orders show up as actual numbers.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

High-Value Electronics Mix Defends Margin

Even with vehicle output flat, second quarter 2026 operating profit of KRW 107.0bn topped the prior quarter's KRW 93.6bn and the fourth quarter 2025 trough of KRW 79.7bn.

The company said it defended profitability through emerging market growth, wider contribution profit in Europe and cost recovery activity despite higher semiconductor and raw material prices, while expansion of IDB2 and R-EPS lifted the electronics share to 66%.

If profit generation rests on content value rather than volume, the shock from a slowing production cycle can be partly absorbed.

Korea Investment and Securities assessed in late July 2026 that a strategy of raising the share of high-value products such as second generation IDB and electric power steering, instead of chasing low-price orders, is feeding through to better profitability.

KRW 59tn Backlog and Regional Spread

The order backlog stood at KRW 59tn at the end of June, several times annual 2025 revenue. In first half new orders, Chinese automakers were the largest at 36%, followed by Hyundai and Kia at 33%, India at 14% and North America at 12%, easing single-customer concentration.

In the second quarter of 2026 as well, India grew 17.7% and Europe 16.5% while Korea fell 2.3% and the Americas 1.4%, so one region genuinely offset weakness in another. Backlog, however, takes years to convert into revenue and can be adjusted when customers change volume plans.

The Robot Actuator Option

HL Mando won an order from a global robotics company in the fourth quarter of 2025 for next-generation quadruped robot actuators, with mass production slated for 2027 at the earliest.

It is developing nine actuator types across QDD, PRS and harmonic architectures, has finished prototypes, and plans to complete a master model and a pilot production line in the United States in the second half.

Hana Securities said in a July 2026 report that cost reduction potential from the existing auto value chain, mass production capability built on modularization and automation, and ownership of a US production base are differentiators.

The key question is whether integration skills in motors, reducers and controllers built in auto parts truly transfer to robot joints.

Bear factors

Operating Margin Stuck Near 4%

While revenue rose from KRW 7,516.2bn in 2022 to KRW 9,454.8bn in 2025, the operating margin oscillated between 3.3% and 3.8%, peaking at 4.1% in 2024. In 2025, despite revenue growth above 6%, operating profit actually slipped from KRW 358.8bn to KRW 357.1bn.

Kiwoom Securities noted in an April 2026 note that visibility on defending an annual operating margin in the 4% range in the core business also needs to improve. Given structural cost-down pressure from automakers, there is a standing risk that mix gains get offset by price concessions.

Robot Revenue Still in the Tens of Billions of Won

Hana Securities said in a July 2026 report that current supply of quadruped robot actuators is only in the tens of billions of won. That implies a long lag before any meaningful contribution to the earnings of a company with revenue above KRW 9tn.

Meritz Securities reported in June 2026 that the company had targeted actuator supply for a US world-model developer's third generation humanoid, but the target shifted to the fourth generation as third generation volume preparation was delayed, with bidding results expected at the earliest by the end of the first half of 2027.

Kiwoom Securities noted in April 2026 that it is objectively hard to call HL Mando's timeline of beginning humanoid joint actuator bidding during 2027 an early one.

Non-Operating Volatility and Lower Net Profit

Net profit attributable to owners fell for three straight years from KRW 135.6bn in 2023 to KRW 129.9bn in 2024 and KRW 100.0bn in 2025, and in the second quarter of 2025 dropped as low as KRW 4.5bn. Currency moves and financial asset valuation swing quarterly results heavily.

In particular, it has been pointed out that valuation swings tied to the share price of iMotion, a Chinese autonomous driving startup HL Klemove invested in during 2022, have persisted for years and added to non-operating losses, and calls to stabilize net profit volatility by exiting the stake remain unresolved. In other words, an improving operating line may not translate one-for-one into net profit.

Risk factors

Downstream Demand and Customer Concentration

Component revenue ultimately rests on automaker production volume.

Kiwoom Securities projected in an April 2026 note that the second largest customer, a North American battery electric vehicle leader, would produce 1.58 million units this year, down 4.2% year on year, and that volume weakness from the exhaustion of green vehicle subsidies in major markets would weigh more heavily into the second half.

Korean revenue in the second quarter of 2026 fell 2.3% on lower domestic output at Hyundai and Kia. Changes in top customers' production plans feed directly into utilization rates and fixed cost burden.

Input Costs, Tariffs and Currency

The company said semiconductor and raw material price increases were a burden again in the second quarter of 2026.

Since ADAS semiconductors are purchased in dollars, cost pressure shifts with the exchange rate, and Kiwoom Securities noted in April 2026 that rising dollar-denominated semiconductor input costs for ADAS products constrain margin improvement.

Tariffs have eased in 2026 but remain a policy variable that could tighten again, and tariff costs were indeed incurred in the first quarter of 2026. Currency can work in opposite directions on operating profit and net profit.

New Business Capex and Competition

The robot actuator business involves phased investment of roughly KRW 100bn to 200bn under review to build early mass production capability in North America, which is largely upfront spending ahead of confirmed orders.

Competition has already begun, with Hyundai Mobis declaring entry into the humanoid robot actuator market in August 2025, and cost competition from Chinese suppliers is another variable.

Payback hinges on the roadmap of orders in 2027 and mass production in 2028, so any slippage means depreciation and R&D costs hit the income statement first.

What to watch next

Late October 2026
Third quarter results and the earnings call. The checks are whether operating profit, which recovered to KRW 107.0bn in the second quarter of 2026, and a margin in the low 4% range hold, and whether the path to the annual revenue target of more than KRW 9.6tn the company cited remains intact.
Fourth quarter 2026
How close cumulative bookings get to the KRW 13tn annual target, and the trend in the electronics share of orders. With 44% achieved in the first half, the second half booking pace determines revenue visibility from 2027 onward.
During the second half of 2026
Physical progress in the robot business. Watch whether the master model reflecting customer requirements is completed and the pilot production line in the United States starts up on schedule, along with the start of mass production for the e-Hatch sensor.
Early February 2027
Confirmation of full-year 2026 results and 2027 guidance. Key observations are whether the annual operating margin improved from 3.8% in 2025 and how the interim path toward the 2030 revenue goal of KRW 14.1tn is updated.
End of the first half of 2027
The point at which, per a June 2026 Meritz Securities note, the bidding result for a North American company's fourth generation humanoid actuator is expected to be confirmed. Actual supplier selection determines when the robot business begins contributing to earnings.

Overall view

HL Mando's recent results are a textbook case of growth without volume.

With automaker output flat, revenue rose from KRW 7,516.2bn in 2022 to KRW 9,454.8bn in 2025 while the operating margin stayed in the mid-to-high 3% range, and in 2026 the direction turned better as second quarter operating profit recovered to KRW 107.0bn.

The drivers of that recovery are an electronics share of 66% on wider IDB2 and R-EPS adoption plus regional spread across China, India and Europe, supported by an order backlog of KRW 59tn underpinning the medium-term revenue base.

On the other side sit thin margins, net profit that swings with currency and financial asset valuation, and structural cost-down pressure from automakers.

The robot actuator business drawing market attention currently supplies only tens of billions of won, so its earnings contribution is still negligible, and the stage now is watching whether the roadmap of orders in 2027 and mass production in 2028 holds.

Brokerage views are not aligned either, with reports flagging valuation burden and reports praising the structural change in the China business appearing only months apart on the same set of numbers.

Ultimately, the next phase will be defined by two verifiable facts: whether the core operating margin settles in the 4% range, and whether robot orders materialize in physical form. This report is for information purposes and contains no buy or sell recommendation.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.