The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed. - Following its competitor, Taiwan’s Taimide Tech, PI Advanced Materials is set to hike its PI prices in earnest this week. The price increases are due to be finalized after discussions with clien
The authors are analysts of Shinhan Investment Corp. They can be reached at hyungwou@shinhan.com and ym.ko@shinhan.com, respectively. -- Ed. Brighter outlook for 2022 and 2023We expect LG Innotek to deliver record-high earnings for 4Q21 at operating profit of KRW422.2bn (+23% YoY), backed by peak se
The author is an analyst of KB Securities. She can be reached at leesunhwa@kbfg.com. -- Ed. Maintain BUY, target price of KRW620,000 We maintain BUY and TP of KRW620,000 on CJCJ. The processed food business has been gaining overseas market share while benefiting from domestic price hikes, and Bio ha
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. DRAM prices expected to bottom out in 1Q22— On Nov 23, SEC stock hit KRW75,300 amid a three-day rally, but it is still down 9.3% YTD (KRW83,000 on Jan 4). We believe DRAM prices will bottom out in 1Q22 because
MBK Partners, Northeast Asia’s largest private equity operator, made an impressive result in 2021. The company made successful trade sales consecutively in the three countries of Korea, China and Japan this year, the first time since its establishment in 2005.China was the first country where the co
The Financial Services Commission has initiated an accounting fraud investigation regarding the three listed companies of Celltrion Group.In the group, Celltrion manufactures biosimilars and Celltrion Healthcare purchases the products in quantity to sell them abroad. According to the financial autho
The authors are analysts of Shinhan Investment Corp. They can be reached at doyeon@shinhan.com and hyon@shinhan.com, respectively. – Ed. Share price bottom confirmed for memory chipmakersMemory stocks tend to bottom out when: 1) market consensus on chipmaker earnings record a belated drop; 2) PBR va
The U.S. government is considering imposing countervailing duties on South Korean and Russian oil country tubular goods (OCTG). South Korean steel pipe manufacturers are facing increasing difficulties with a quota already applied to steel exports from South Korea to the United States.The United Stat
The author is an analyst of NH Investment & Securities. He can be reached at kyeongkeun.kang@nhqv.com. -- Ed. E&Corporation has transformed into an industrial water treatment platform company by acquiring water treatment EPC, liquid designated waste & wastewater treatment, and water treatment O&M fi
The author is an analyst of KB Securities. She can be reached at shinay.park@kbfg.com. -- Ed. Maintain BUY, target price of KRW240,000; stock grossly undervalued given value of businesses We maintain BUY and TP of KRW240,000 for E-mart, as 2022E/2023E OP were tweaked by less than 4%. We believe the
Hyundai Motor Group chairman Chung Eui-sun said on Nov. 22 that his company would not produce electric vehicle batteries on its own. It marked the first time that the group’s chairman clarified his position on internalizing battery production. Following Tesla, global automakers, including Volkswagen
The authors are analysts of Shinhan Investment Corp. They can be reached at jy.son@shinhan.com and bh.lee@shinhan.com, respectively. -- Ed. Investment point 1: Visible expansion of overseas operationsGolfzon is expanding its overseas operations in earnest. Overseas sales should thus continue on an u
KEPCO's outstanding corporate bonds have soared by more than 10 trillion won over the past four years. The increase is blamed on a rise in oil and liquefied natural gas (LNG) prices and the burden imposed on the company to promote renewable energy businesses. As a result, KEPCO's deficit has
The Korean government has finally wrapped up the privatization of Woori Financial Group.The Public Fund Management Committee under the Financial Services Commission is to announce on Nov. 22 five or six companies that would take over a 10 percent stake in the financial group from Korea Deposit Insur
Nowadays, both the United States and China are putting increasing pressure on South Korean enterprises so that they do not increase their investment in China and the United States, respectively. The two superpowers are their most important trade partners and their concerns are growing under the circ
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Raise target price by 17% to KRW350,000 We maintain BUY on LG Innotek and raise our 12m TP by 17% to KRW350,000 (9.0x 2022E P/E) based on the following:(1) The company’s key products are likely to be employed a
The authors are analysts of Shinhan Investment Corp. They can be reached at sh.kim@shinhan.com and mintz95@shinhan.com, respectively. -- Ed. Expanding presence in bio CMO to the US via investment in CBMSK is in final talks to acquire a stake in the Center for Breakthrough Medicines (CBM), a gene and
The authors are analysts of Shinhan Investment Corp. They can be reached at hyungwou@shinhan.com, ym.ko@shinhan.com and chank@shinhan.com, respectively. -- Ed. 3Q turnaround, 4Q earnings unaffected by inventory adjustmentsBH succeeded in turning around in 3Q21 with operating profit of KRW43.7bn from
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. If the targeted pre-sales volume for the remaining two months of 2021 is achieved, the 2021 pre-sales market could be evaluated as being ‘relatively good’. However, unsold pre-sales units in Kore
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. Predictions of valuation re-ratings for domestic constructors had strengthened as their 2021F pre-sale volume is being sized at over 450,000 units. However, we point out that their pre-sale volum