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
The author is an analyst of KB Securities. He can be reached at moonjoon.chang@kbfg.com. -- Ed. Initiate coverage with BUY rating, target price of KRW188,000 We initiate coverage on DL E&C with a BUY rating and TP of KRW188,000. Derived using the P/B-ROE model, our TP represents 0.85x (9.1% COE; 8.0
The authors are analysts of Shinhan Investment Corp. They can be reached at eoyeon.hwang@shinhan.com and younghoon.song@shinhan.com, respectively. – Ed. 3Q21 OP to meet consensus at KRW21bn (+157.5% YoY)We now expect LIG Nex1 to post operating profit of KRW21bn (+157.5% YoY) on sales of KRW477.5bn (
The authors are analysts of Shinhan Investment Corp. They can be reached at jhwon@shinhan.com and shawn1225@shinhan.com, respectively. -- Ed. Korea’s leading IVD company with original technologiesSeegene develops and produces molecular diagnostic reagents based on original patented technologies (DPO
The Ministry of Trade, Industry and Energy announced on Sept. 30 that its hydrogen economy plan to be announced in November does not include nuclear power-based hydrogen production, that is, zero-carbon green hydrogen production based on water electrolysis.The plan is likely to be based on LNG refor
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. Kolmar Korea’s 3Q21 OP is forecast to climb 20.0% y-y. Earnings improvement at the firm’s main cosmetics business is to continue, with the domestic cosmetics division returning to positive growth and
The author is an analyst of NH Investment & Securities. She can be reached at mj27@nhqv.com. -- Ed. Expand weighting on ODM playsInvestor sentiment over the cosmetics sector has worsened on the prolonging of the Covid-19 crisis, a slump in China’s economy and consumption, and the stricter Chinese go
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed. We expect Innox AMC to report record-high earnings in 2H21 and 2022 thanks to strong business conditions, including an increase in OLED panel shipments at customers, the firm’s strengthening marke
Volkswagen and Toyota announced this month that they would invest 57 trillion won in EV battery production. Their purposes are the same, that is, self-supply. In other words, the two biggest companies in the global automotive industry are planning to produce EV batteries on their own.This is likely
SK Hynix’s plant in China faces no problem regarding the recent electricity shortage in China, the company's CEO said on Sept. 28."We have no problem at all in operating our plant China," said Lee Seok-hee at the launching ceremony for the Semiconductor Solidarity and Cooperation Council hosted