[THE INVESETOR] The stake held by foreign investors in Mando, the automotive parts maker of Halla Group, has nearly doubled over the past months.

As of July 11, foreign investors own 31.3 percent stake in the company, compared with 17.94 percent in March. During the same period, its share price also soared from 142,000 won (US$123) to 230,500 won.

Analysts say the company has made big investments in recent years and investors are now showing keen interest in its business. Among other things, the company is the sole Korean company that produces key parts for futuristic vehicles. 

“Foreign investors prefer companies that are expanding dividends. As its investment is nearing the final stage, there are high expectations about the company’s shareholder-friendly policy,” said Lee Jae-man, an analyst of Hana Securities.

Despite uncertainties in the automotive industry, Mando, which supplies of crucial parts such as brake, steering and suspension, is also capable of producing key parts such as ADAS (advanced driver assistance system) and ESC (electronic stability control) for self-driving vehicles.

Currently, about 55 percent of its revenue comes from Hyundai Motor and Kia Motors, and the company is diversifying clients, including Chinese carmakers that make up 8 percent of revenue.

The firm also supplies steering racks for Tesla’s Model S. More recently, a local news daily reported that the company was named a supplier for the upcoming Model 3 with no further details being offered.

By Lee Ji-yoon (jylee@heraldcorp.com)