Mando Corp., a South Korean auto part maker, is flying high on the stock market this year, on expectations for the company’s prospects as it is courted for its proprietary self-piloting technology from domestic and overseas carmakers.

Mando shares closed Friday at 259,000 won ($230) last Friday, gaining 56.5 percent so far this year. They stand out because stock prices of leading finished carmakers like Hyundai Motor and Kia Motors, fell nearly 20 percent and 9 percent, respectively, in the same period. On August 18, Mando shares climbed to their all-time peak of 273,000 won. Auto part makers and finished carmakers tend to move in parallel on the stock market. But Mando has debunked the trend this year.

What drove its solo rally was the independently developed Advanced Driver Assistance Systems (ADAS), which makes the car recognize ambient driving conditions for self-driving.

Mando spent six years developing and commercializing the technology. ADAS sales account for a mere 3 percent of its total revenue, but the technology’s contribution became distinct after a break-even point was reached this year. The company also gained a boost after it was added to the supply chain of U.S. leading electric vehicle company Tesla Motors late last year with a goal to jointly develop fail safe technology, a back-up system that activates in case of specific failure or emergency in self-driving cars by 2020.

Global sales and diversification of its income sources are also helping boost Mando’s stock price. Mando sales to global carmakers jumped to 40 percent recently on increased cooperationwith GM, Ford and Volkswagen for many years.

“It’s good news for its stock price that Mando is decreasing its dependence on Hyundai Motor and Kia Motors. Sales in China represent 25 to 30 percent of the total but half of its net profit comes from China,” said Lee Sang-heon, chief analyst at IBK Securities Co.

By Park Yoon-gyu

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