The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Opportunity exists in 2023 but needs verification via earnings to be reflected in valuations— KakaoBank reported 2022 standalone NP of KRW263.1bn (+28.9% YoY). — NIM rose 50bps, driving up net interest income a
The author is an analyst of NH Investment & Securities. He can be reached at sw.kang@nhqv.com. -- Ed. While the Fed looks to be aiming for a soft landing with a hawkish slant, the TB market is pricing in a hard landing coupled with a dovish stance. Despite a likely upward revision in the Fed’s termi
Last month, business loans outstanding showed the most rapid increase since June 2009 with the corporate bond market shrinking. Household loans outstanding slightly decreased, with the amount of increase in mortgage loans decreasing.The Bank of Korea announced on Dec. 8 that business loans outstandi
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. Interest rate upcycle and housing price decline in playIn 2022, the domestic housing price has been falling with mortgage rates rising in line alongside the BOK’s series of base rate hikes. Given
The author is an analyst of NH Investment & Securities. He can be reached at sw.kang@nhqv.com. -- Ed. Starting in October, US and non-US monetary policies began to diverge. Although it is premature to discuss a US hawkish peak out, the main hurdle has passed from a global perspective. Considering Au
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Maintain BUY but cut target price 33.3% to KRW24,000 We cut our RIM-based TP by 33.3% to KRW24,000 based on the following: (1) While loan growth stands out vs. that of rivals thanks to growth in new mortgage lo
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. Lower target price to KRW37,500; maintain BUY We lower our 12m TP by 11.8% from KRW42,500 to KRW37,500 (12m fwd BVPS x 0.78x target P/B). Changes in beta and yields on 1y monetary stabilization bond (RFR) and 30y
The author is an analyst of Shinhan Investment Corp. He can be reached at yjjung86@shinhan.com. -- Ed. Auto stocks to serve as a defensive play in the current environmentAlmost all consumer goods cannot escape the impacts of an economic slowdown or recession. Auto stocks are typical cyclical stocks
The Bank of Korea announced on Sept. 22 that South Korea’s housing price rose 25.5 percent from January 2020 to May this year and the rate of increase is the 15th-highest in the OECD.“When it comes to the pace of increase in housing price-to-income ratio, South Korea is third-highest among 33 countr
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Maintain BUY; revise down target price 5.3% to KRW36,000 We maintain BUY on KakaoBank but revise down our TP by 5.3% to KRW36,000, as (1) new loan growth (incl. mortgage loans) disappointed, though overall loan
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. 2Q22 delivers an earnings surprise— Doosan Bobcat posted 2Q22 consolidated (K-IFRS) revenue of KRW2.22tn (+72.8% YoY) and OP of KRW309.5bn (+120.9% YoY; 14.0% OPM).— Revenue beat consensus by 23.2%, OP by 54.5%,
The author is an analyst of NH Investment & Securities. He can be reached at junsup@nhqv.com. -- Ed. Sector share prices are being weighed on as of late by recession and regulation risk fears. But, we point out that banking players’ fundamentals remain sound. Moreover, we see 2022E DY reaching its h
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Maintain BUY but slash target price 36.7% to KRW38,000 We maintain BUY on KakaoBank but slash our TP by 36.7% to KRW38,000. Loan growth stands out compared to that of peers but should fall short of expectations
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. Maintain BUY; cut target price to KRW42,500 We cut our 12m fwd TP by 15% to KRW42,500 (12m fwd BVPS x 0.91x target P/B). Our revisions to 1y monetary stabilization bond (risk-free rate), 30y KTB yield (TGR) and b
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. Presidential transition committee’s housing policy proposalsThe presidential transition committee, which was launched in March following the presidential election, has been actively communicating
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Expectations remain intact but difficult to confirm with just 1Q22 earnings— We have two main expectations for KakaoBank:1) Outstanding product competitiveness and market penetration with rapid lending growth b
The new government will toughen regulations on foreigners who purchase multiple houses in Korea. In particular, it is expected to focus on the Chinese investors who have recently bought many houses in the capital zone, including Seoul and Gyeonggi Province.The Presidential Transition Committee said
The author is an analyst of NH Investment & Securities. He can be reached at sw.kang@nhqv.com. -- Ed. Based on the US government’s interest expense-to-fiscal debt ratio, we believe that the US can tolerate 10yr TB yields of up to 2.75%. US TB yields are unlikely to keep trending upwards. With regard
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Maintain BUY, target price of KRW60,000 We maintain BUY and TP of KRW60,000 on KakaoBank to reflect the following:(1) Despite moderate loan growth in 1Q22, potential easing of household loan regulations may rai
The author is an analyst of NH Investment & Securities. He can be reached at junsup@nhqv.com. -- Ed. With uncertainties towards HFG being resolved rapidly, it is time to switch focus to its attractive valuation.Uncertainties resolving quickly, paving way for share price growthA set of uncertainties