The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Maintain BUY, target price of KRW245,000 Despite limited earnings momentum in 1Q22, we maintain BUY and TP of KRW245,000 on Kumho Petrochemical based on (1) high commodity rubber (e.g., BR, SBR) margins amid lim
Jungheung Group has completed the acquisition of Daewoo Engineering & Construction (Daewoo E&C).KDB Investment, a restructuring private equity fund established by Korea Development Bank (KDB), said on Feb. 28 that KDB Investment and Jungheung Group officially completed the latter’s takeover of Daewo
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Revise down TP to KRW245,000 We maintain BUY on Kumho Petrochemical, but lower our TP by 12.5% (to KRW245,000) to accommodate downward revisions to our earnings estimates. We have revised down 2022E/2023E NP (at
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Cut target price to KRW280,000 We cut our TP by 17.7% to KRW280,000 to reflect downward revisions to 2022E/2023E NP attributable to controlling interests of 6.0%/6.8% due to declines in NB-latex and BPA prices a
The Korea Fair Trade Commission announced on Nov. 16 that the ratio of internal transactions is higher in unlisted subsidiaries than in listed subsidiaries of major business groups and higher in owner-led groups than in ownerless groups. It also said that the ratio tends to be proportional to the ow
Short selling on Celltrion, which has the largest short balance among KOSPI stocks, is on the rise again. This means that more and more investors expect that the pharmaceutical company’s stock price will fall further, although it has already halved compared to its highest point.Celltrion's short
The author is an analyst of NH Investment & Securities. He can be reached at ys.hwang@nhqv.com. -- Ed. Amid a drop in overall profitability in the petrochemical industry in 2H21, Kumho is maintaining relatively high profitability thanks to a business portfolio centered upon products in tight supply.
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Lower target price 6.6% to KRW340,000 We maintain BUY on Kumho Petrochemical but lower our TP by 6.6% to KRW340,000. We adjusted down 2022E NP (attributable to controlling interests) by 6.0% to reflect higher fe
Kumho Tire's Chinese parent company, Doublestar, will make an additional investment in the tire maker’s Vietnamese production subsidiary.Doublestar plans to acquire a 42.4 percent stake in Kumho Tire's Vietnamese production subsidiary for US$92.3 million, according to a semiannual report rel
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. 2Q21P results meet market consensus— Kumho Petrochemical reported 2Q21 revenue of KRW2.20tn (+114.3% YoY, +18.6% QoQ) and OP of KRW753.7bn (+527% YoY, +23.0% QoQ). Earnings improved sharply YoY/QoQ and met the m
Kumho Petrochemical announced on Aug. 5 that it will produce eco-friendly synthetic rubber composites by using bio materials made from rice bran extracts.The company plans to make silica, a raw material that improves the fuel economy, braking power and wear resistance of synthetic rubber for tires,
Kumho Tire announced on July 22 that it will supply tires for Nissan's fifth-generation “Pathfinder.”The Pathfinder is a mid- to large-sized SUV model launched in 1985. It is Nissan’s flagship SUV and has maintained its position as a steady seller.Kumho Tire will supply the Crugen HP71 Tire, a h
The author is an analyst of Shinhan Investment Corp. He can be reached at sh.kim@shinhan.com. -- Ed. 2Q21 NP at all-time high of KRW752.6bn (+429% YoY, +12.8% QoQ)Woori Financial Group reported net profit of controlling interests of KRW752.6bn for 2Q21, exceeding the consensus estimate by nearly 20%
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Raise target price to KRW364,000 We maintain BUY on Kumho Petrochemical and raise our TP by 7.1% to KRW365,000 to reflect our improved earnings outlook. Specifically, we revised up 2021E/2022E NP (attributable t
Korea Corporate Governance Service (KCGS) announced on July 13 that it has lowered the ESG management grades of Samsung Electronics, Lotte Chemical, HDC Hyundai Development Company, Korea Zinc, Central Insight, Asiana IDT, Air Busan and Asiana Airlines.The ESG management grade of Samsung Electronics
South Korean tire manufacturers are facing a triple whammy of rising raw material prices, rising logistics costs and high anti-dumping duties in the United States.On June 23, the United States International Trade Commission drew a conclusion that passenger car and light truck tires imported from Sou
The author is an analyst of NH Investment & Securities. He can be reached at ys.hwang@nhqv.com. -- Ed. In 2H21, sector product margins are to be weighed upon by large-scale expansion of petrochemical facilities, and cost burdens will likely amplify due to rising oil prices. We recommend companies po
The author is an analyst of NH Investment & Securities. He can be reached at ys.hwang@nhqv.com. -- Ed. Kumho Petrochemical booked record-high OP for 1Q21. With the synthetic rubber and phenol derivatives businesses entering a boom season, the company is expected to break its OP record again in 2Q21,
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. 1Q21 earnings beat market consensus by significant margin— Kumho Petrochemical posted 1Q21 revenue of KRW1.85tn (+51.3% YoY, 35.4% QoQ) and OP of KRW612.5bn (+360.1% YoY, 122.7% QoQ); OP beat the market consensu
The Financial Supervisory Service announced on May 2 that the corporate tax payment of South Korea’s top 50 business groups in terms of market cap, which account for approximately 40 percent of the country’s GDP, dropped by no less than 62 percent from 28 trillion won or so last year.“The corporate