The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. With the data center peak utilization rate having dropped as of late versus the 1H21 level, server DRAM consumers are starting to take the lead in price negotiations. Also posing a risk to server inve
The author is an analyst of Shinhan Investment Corp. He can be reached at mj1224@shinhan.com. -- Ed. 3Q21 operating profit forecast at KRW22.5bn (+4.4% QoQ)AfreecaTV is expected to have registered operating profit of KRW22.5bn (+4.4% QoQ) on sales of KRW69.8bn (+7.4% QoQ) for 3Q21. Platform service
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed. Based on recent brisk sales, we boost our 2021 foldable smartphone shipment estimate for KH Vatec’s main client from 8.5mn units to 10mn units. Anticipating accompanying earnings growth in 2H21 an
The global economy is recovering, the prices of raw materials are rising, and this is leading to mixed results on the part of South Korean energy companies. For example, oil refining companies’ inventory profits are rising along with their refining margins whereas raw material costs are adding to th
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. Although recognizing the existence of 3Q21 earnings uncertainties, we view recent F&B share price drops as being excessive. Looking beyond, price, supply, and cost factors suggest that profits are pri
SK On, a battery subsidiary of SK Innovation, is considering entering the lithium iron phosphate (LFP) battery business. The LFP battery market has been dominated by Chinese manufacturers. Recently, LG Energy Solution has reportedly started a move to enter this market."We are considering developing
South Korea declared in February this year that it would become one of the top five players in the global offshore wind power industry. These days, however, South Korea’s wind power generation equipment imports are increasing fast and South Korean companies in the industry are still struggling. Expe
Korea CXO Institute recently analyzed the holdings of listed shares of South Korea's top 50 CEOs and said that the appraised value of the shares of the 38 who own them decreased from 60.8057 trillion won to 53.1229 trillion won in the third quarter of this year.Specifically, the appraised value
The ongoing power shortage in China is increasingly affecting global raw material and product supply chains. For example, the government of Shanxi recently told 30 magnesium smelting companies in the province to pause their business for the rest of this year, and then the price of magnesium jumped f
The Korean Fair Trade Commission (FTC) has turned out to be the only one among the fair trade watch dogs in six countries that has not yet completed the first phase of the review regarding the merger between Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine Engineering (DSME).Among the
The Federation of Korean Industries recently conducted a survey with 350 South Korean companies subject to greenhouse gas emission and energy use control. No less than 68.3 percent of the respondents answered that the nationally determined contribution for 2030 stipulated in the Carbon Neutrality Fr
Global supply chain instabilities are increasing to the point of potentially affecting South Korea’s semiconductor production. The ongoing power shortage in China is already affecting South Korean companies in China along with logistics setbacks.At present, Samsung Electronics is running two NAND fl
The author is an analyst of KB Securities. He can be reached at moonjoon.chang@kbfg.com. -- Ed. Maintain BUY, target price of KRW66,000 We maintain BUY and our TP of KRW66,000 for Hyundai E&C. Earnings have yet to turnaround because of a delayed rebound in overseas revenue as well as 2Q21 one-off lo
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW105,000 We maintain BUY on SEC and our 12m TP of KRW105,000 based on the following:(1) Earnings capacity should remain robust during the semiconductor downcycle as amplitude eas
The author is an analyst of Shinhan Investment Corp. He can be reached at sh.kim@shinhan.com. -- Ed. SK Materials has announced plans to split off into a holding company (tentatively named SK Materials Holdings) and a wholly-owned subsidiary focused on specialty gases (SK Materials). Upon the split-
The author is an analyst of Shinhan Investment Corp. He can be reached at mj1224@shinhan.com. -- Ed. Upbeat on changes to Lineage W revealed at second showcaseOn September 30, NCsoft held the second showcase for its upcoming game Lineage W and answered questions that had been submitted in advance. S
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. We believe that LG H&H’s OP grew only 0.3% y-y in 3Q21, weighed upon by Covid-19 effects, a rising raw materials cost burden, and an adverse y-y base burden. However, Whoo’s brand power appears to rem
The author is an analyst of NH Investment & Securities. He can be reached at pk.park@nhqv.co. -- Ed. We raise our TP on SK Bioscience to W340,000, expecting: 1) C(D)MO production to run at maximum capacity in 2022; and 2) price rise for the company’s own GBP510 vaccine. Further positives include imp
Samsung Biologics has asked the leaders of the ruling Democratic Party of Korea (DPK) to raise the tax credit on investment in biotech facilities such as COVID-19 vaccine plants to 6 percent.The company delivered its request for increased tax benefits to DPK leader Song Young-gil, who recently visit
The stock price of SKC, a secondary battery copper foil producer, plunged by more than 15 percent on Sept. 30 on the news that its plan to set up a joint venture with Nexeon, a British silicon cathode material producer, was canceled.The stock price of SKC closed at 169,000 won on Sept. 30, down 15.0