[STOCK WATCH] Mando rises 3%

PUBLISHED : November 23, 2016 - 13:55

UPDATED : November 23, 2016 - 15:37

- On its close competitors, Volatility is low and Earning Rate is high

- Most related stocks have declined. Transport Equipment industry +0.56%

- Target price KRW 299,400, has 21% disparate to increase compared with stock price.

- Institutions and Individuals sell, Foreigners buy

- Price Range is too low

- Institution 27.33%, Foreigners 52.87%

■ Market Review

As of Nov. 23 12:40 P.M., Mando (204320) increased 3.35%, compared with yesterday, to 246,500 won (US$ 209.68). It had declined 6.1% through the past month. Standard deviation, which indicates variableness, records 2.9% on the same period of time over one month.

Compared with its close competitors within the same industry, KOSPI, evne though the investment return of Mando was the most satisfactory among its peer group, its volatility for 1 month was the highest among its peer group's. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -2.1%. Though the volatility was the highest among its peer group, the return-on-risk recorded the highest among its peer group as satisfactory stock Moreover, compared with the KOSPI industry, the return-on-risk is much better than the industrial mean, -2.8, and thus the industrial comparison performance was good.

Comparing industry to the market, the KOSPI industry including Mando records higher volatility but lower earning rate than Transport Equipment. Even though the earning rate of the industry is negative, the industry was more satisfactory than the market.

Close Competitors	Earning rate (%)			STD (1Mo)	Return on Risk (1Mo)
Close Competitors	1 Mo	3 Mo	6 Mo	STD (1Mo)	Return on Risk (1Mo)
MANDO(204320)	-6.1%	-3.5%	21.1%	2.9%	-2.1
KOREA AEROSPACE(047810)	-6.3%	-14.7%	3.0%	2.4%	-2.6
SAMSUNG HVY IND(010140)	-8.0%	5.6%	18.4%	2.4%	-3.3
HANWHA TECHWIN(012450)	-18.0%	-11.4%	19.1%	2.0%	-8.9
HYUNDAI WIA(011210)	-17.6%	-15.7%	-22.3%	1.7%	-10.3

Transport Equipment	-6.0%	-9.2%	-3.4%	1.0%	-6.0
KOSPI	-2.0%	-2.9%	-2.3%	0.7%	-2.8

Target price 299,400 won has 21% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of Mando is 299,400 won. The stock price is 246,500 won as of yesterday, so there is 52,900 won (21%) disparate in order to be able to increase.

■ Earnings & Valuation

MANDO(204320): 3Q(July ~ Sept) of 2016 Earnings (reported at Nov. 15. 2016)

	Revenue	Operating Income	Net Income
3Q of 2016	13,568.0 T	748.9 T	450.3 T
Previous Quarter	5.8% decline	15.7% increase	0.5% decline
YoY	6.2% increase	18.9% increase	70.7% increase

MANDO(204320): 4Q(Oct ~ Dec) of 2016 Earnings Estimates

Estimates	Revenue	Operating Income	Net Income
2016Q of 4	15,040.0	896.6	556.6
Previous Quarter	10.8% increase	19.7% increase	23.6% increase
YoY	5.1% increase	15.8% increase	50.2% increase

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while MANDO's P/E ratio, a price-paid ratio of annual net income, is relatively higher value, its P/B ratio, a financial ratio of a company's book value, records a proper value.

P/E ratio and P/B ratio

Close Compatitors	ROE	PER	PBR	Basic Date
MANDO(204320)	10.7	14.9	1.6	Sept. 2016
HYUNDAI WIA(011210)	6.5	9.4	0.6	Sept. 2016
KOREA AEROSPACE(047810)	16.9	29.7	5.0	Sept. 2016
SAMSUNG HVY IND(010140)	-5.2	-	0.4	Sept. 2016
HANWHA TECHWIN(012450)	11.6	10.9	1.3	Sept. 2016

■ Investor Group

Institutions and Individuals sell, Foreigners buy
From Nov. 18, foreigners have been continuously buying Mando during the past 3 trading days. As a shareholding sum by investor group for the past 4 weeks, foreigners have bought 120,124 shares with a maintenance of shareholding. However, during the same period, Institutions have sold 102,582 shares with a selling trend and individuals have sold 17,542 shares in a lessening selling trend.

Price Range is too low
Regarding the statistics for the past month on trade volume as the total outstanding shares, the daily turnover rate of Mando was 0.74%. The daily volatility during the same period is 0%, so the fluctuation of price range has been low.

Institution 27.33%, Foreigners 52.87%
As per the inquiry for shareholding by investor group, the major investor group is foreigners with 52.87% from total outstanding shares. Institutions and individuals each hold 27.33% and 19.79%. And as recent 5-day shareholding change by investor group, foreigners is the major investor group with 51.24%. Institutions hold 25.11% and individuals hold 23.64%.

Cumulated shareholdings per investor group (1Mo)		Total shareholdings per investor group

* Other Investor groups, included as "other corporations", are considered as "Individuals".

By HeRo (hero@heraldcorp.com)

This article is produced by the algorithm developed by the artificial intelligence developer ThinkPool in collaboration with Herald Corp.

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