A significant change is anticipated in large corporations’ labor-management relations as office workers at LG Electronics, Hyundai Motor Group, Kumho Tire, and so on are forming their own unions to separate themselves from existing unions led by manufacturing workers. This trend was triggered in Jan
The author is an analyst of NH Investment & Securities. He can be reached at ys.hwang@nhqv.com. -- Ed. Following reduced petrochemical product supply due to a February cold wave in the US, petrochemical product spreads have proved strong in March. We expect solid results from related products to con
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Reiterate BUY We reiterate BUY on Kumho Petrochemical and raise our TP by 4.6% to KRW340,000. Derived using the P/B-ROE model, our TP implies 2021E P/E and P/B multiples of 10.3x and 2.47x, respectively. While w
The uncle-nephew dispute over managerial control at Kumho Petrochemical is expected to be resolved at the company’s shareholders' meeting in March.According to the Financial Supervisory Service's electronic public disclosure system, Park Chul-wan, a managing director of Kumho Petrochemical f
Hankook Tire announced on Feb. 15 that it was planning to expand its plant in Clarksville, Tennessee of the United States, to double its production capacity from 5.5 million units a year to 11 million units.The company is planning to invest about 100 billion won in plant expansion in 2021 and invest
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com. -- Ed. Target price raised to KRW325,000 We maintain BUY on Kumho Petrochemical and raise our TP from KRW146,000 to KRW325,000, reflecting upward revisions to our earnings estimates. Our 2021/2022 EPS estimates were ra
The Korea Fair Trade Commission announced that South Korea was home to 64 business groups and SK was the one with the largest number of subsidiaries, 144, as of Jan. 31. The commission also said that the group had no subsidiary in the financial and insurance sectors.The runner-up is Kakao, which had
The author is an analyst of NH Investment & Securities. He can be reached at ys.hwang@nhqv.com. -- Ed. Amid the Covid-19 outbreak, demand for Kumho’s major products is strong and its OPM is on the rise. Demand should remain solid in 1Q21. However, upon higher vaccine distribution and lower infection
Kumho Tire announced on Jan. 21 that it has recently received KC certification for its tire sensor module and wireless communication device that connects the module to the vehicle’s on-board information system.KC certification is a mandatory certification scheme in Korea for all electrical and elect
In the aftermaths of COVID-19, NB latex exports hit an all-time high in December 2020. As a result, earnings expectations for Kumho Petrochemical, the world's No. 1 producer of NB latex, are growing.Korea's NB latex exports reached US$150 million in December 2020, soaring 34 percent from the
Corporate research firm CEO Score recently analyzed 347 out of the 500 largest South Korean enterprises and the 1,582 former and current CEOs who worked or are working for the companies after 2010. According to the firm, the non-owner CEOs who retired in that period worked in that position for 3.6 y
Kumho Tire will expand supply of original equipment (OE) tires (205/60R16 Ecsta PS71) to Skoda, a leading automaker in the Czech Republic.The Korean tire maker has been supplying OE tires for the Octavia, Skoda’s best-selling subcompact model, since May this year. It will additionally supply OE tire
The South Korean government recently decided to invest 2.4 trillion won in Asiana Airlines from its key industry stabilization fund. Specifically, 2.1 trillion won will be spent for the purpose of corporate stabilization and the rest will be added to its liquidity. An operating loan will account for
Creditors of Asiana Airlines declared on Sept. 11 that Kumho Industrial’s contract with HDC Hyundai Development to sell the struggling airline has been canceled.Korea Development Bank (KDB), the main creditor of Asiana Airlines, said in a briefing that the government will immediately inject 2.4 tril
The author is an analyst of Shinhan Investment Corp. He can be reached at hyunwook.kim@shinhan.com. -- Ed. Collapse of HDC-Asiana deal could lead to: 1) legal battle over deposit; and 2) differential capital reductionHDC Hyundai Development Company’s planned acquisition of Asiana Airlines is likely
The author is an analyst of KB Securities. He can be reached at yc.baek@kbfg.com.Maintain BUY and raise target price to KRW146,000 We maintain BUY for Kumho Petrochemical and raise our TP by 18.7% to KRW146,000 to reflect: (1) An upward revision of 2020E/21E EPS by 5.2%/19.2% based on improving synt
HDC Hyundai Development Co.’s planned acquisition of Asiana Airlines has fallen through as the preferred bidder refused to accept creditors’ latest offer to cut the sale price.Korea Development Bank (KDB), the carrier’s main creditor, said the deal has collapsed. “We believe HDC has no intention of
Korea Development Bank Chairman Lee Dong-gull and HDC Hyundai Development Company chairman Chung Mong-gyu met with each other on Aug. 26 to resume the sale of Asiana Airlines.According to industry sources, the bank offered an acquisition price of 1.5 trillion won, including old share purchase and pa
Kumho Engineering and Construction CEO Seo Jae-hwan and HDC Hyundai Development Company CEO Kwon Soon-ho met with each other and discussed the sale of Asiana Airlines on Aug. 20.Early this month, HDC proposed the CEO meeting for continuous discussions after Kumho and its creditors notified it of pot
Working-level talks regarding the sale of Asiana Airlines are underway between Kumho Engineering and Construction and HDC Hyundai Development Company before CEO negotiations.At present, the seller and the potential acquirer are failing to deal with their conflicting opinions. According to Kumho Engi