The author is an analyst of KB Securities. She can be reached at leesunhwa@kbfg.com. -- Ed. Revise down TP by 39.3% from KRW280,000 to KRW170,000; Maintain BUY We lower our target price for HYBE by 39.3% from KRW280,000 to KRW170,000 and maintain BUY. We have revised down 2023E and 2024E OP by 29.6%
RE100 is becoming a new trade barrier as global enterprises in the campaign are putting pressure on suppliers to join it.In fact, various environmental regulations are already acting as trade barriers. According to a recent report of the Ministry of Trade, Industry and Energy, the WTO was notified o
The author is an analyst of NH Investment & Securities. She can be reached at hzl.lee@nhqv.com. -- Ed.On Oct 17, BTS announced plans for military enlistment and group activities, resolving the uncertainties that have caused HYBE’s share price to slump. In addition to addressing the company’s sluggis
Busan City had a meeting on Oct. 11 in order to discuss how to support the BTS concert scheduled for Oct. 15. BTS will give the concert at the Busan Asiad Main Stadium to help the city become the venue of Expo 2030.At the meeting, the city conducted simulations related to traffic, safety, emergency
The possibility of South Korea’s credit crisis is rising, with interest rates going up and its economy slowing down. Its default risk indicators are surging, along with both household and corporate debts and interest burdens. Bloomberg recently reported that the Japanese and Chinese currencies are d
The Bank of Korea raised its benchmark rate by 0.5 percentage point on Oct. 12. Governor Lee Chang-yong remarked that the measure was taken because the current won-dollar exchange rate is emerging as the biggest risk in the South Korean economy.The interest rate gap between the United States and Sou
The author is an analyst of NH Investment & Securities. She can be reached at hzl.lee@nhqv.com. -- Ed. We lower our TP on HYBE by 19% to W250,000 in reflection of slowed growth at the platform division, despite solid earnings at the entertainment arm. In spite of significant share price decline due
Since 2015, 4.1 trillion won in Korean taxpayers’ money has been put into Daewoo Shipbuilding and Marine Engineering (DSME) to keep the ailing company afloat, but it will be sold off to Hanwha Group for no more than two trillion won, which is less than half of the public money spent on it.In particu
The author is an analyst of NH Investment & Securities. He can be reached at sw.kang@nhqv.com. -- Ed. In September, the FOMC suggested a terminal rate of 4.50~4.75%, mentioning the possibility of a recession in 2Q23. However, the market still doubts the effectiveness of inflation control. US 10yr TB
The Bank of Korea announced on Sept. 22 that the ratio of corporate and household liabilities to the nominal GDP was 221.2 percent in the second quarter of this year. The ratio rose 0.3 percentage point in three months to reach the highest level again. The household and corporate liabilities were 1,
The authors are economists at Shinhan Investment Corp. They can be reached at chee@shinhan.com. – Ed. Cases of dollar liquidity crunch in the pastThe USD/KRW exchange rate has been on a steep increase and recently topped the KRW1,380 mark, nearing or exceeding the levels seen during the dollar liqui
Korea has won a large-scale nuclear power plant construction project for the first time in 13 years since its successful bid for the Baraka Nuclear Power Plant project in the United Arab Emirates (UAE) in 2009.The Ministry of Trade, Industry and Energy announced on Aug. 25 that Korea Hydro & Nuclear
The won-dollar exchange rate is soaring amid global inflation, fueling the risk of another economic crisis. The economy is slowing down, demands are shrinking and corporate inventories are continuing to increase. The results are likely to be a decline in capacity utilization, a decrease in investmen
The authors are analysts of Shinhan Investment Corp. They can be reached at yjjung86@shinhan.com and dongho2852.shin@shinhan.com, respectively. -- Ed. 2Q22 OP beats expectations at KRW102.9bn (+254.3% YoY)Ecopro BM posted preliminary operating profit of KRW102.9bn (+254.3% YoY, +150.6% QoQ) on sales
The author is an analyst of NH Investment & Securities. She can be reached at hzl.lee@nhqv.com. -- Ed. HYBE posted consolidated 2Q22 OP of W88.3bn, reflecting the effects of new album releases for all artists. Of note, album sales totaled 5.03mn even when excluding BTS. Successful early performances
The author is an analyst of KB Securities. She can be reached at leesunhwa@kbfg.com. -- Ed. Maintain BUY but cut target price 20% (KRW350,000→KRW280,000) We maintain BUY on HYBE but cut our TP by 20% (KRW350,000→KRW280,000), as we lower 3y OP CAGR (24.4%→14.0%) given that OPM improvement should be l
Samyang Foods announced on Aug. 1 that its Hot Chicken Flavor Ramen, or Buldak-bokeum-myeon, broke the milestone of 4 billion cumulative sales. One in two people around the world ate the spicy instant noodle once.The hot stir-fried instant noodle was launched in 2012 and became famous through the Fi
Samsung Electronics announced on July 31 that it has begun to run outdoor advertisements for its new foldable phone at major landmarks in six countries before its release.The company began to run an advertisement about the unveiling of its new foldable phone at Times Square in New York, Piccadilly S
Samsung Electronics’ 3-nm chip launching ceremony is scheduled for July 25. The company started the mass production of the most advanced semiconductor product in the world on June 30. The first batch of the product considerably improved in power consumption, performance and area will be supplied to
The author is an analyst of KB Securities. She can be reached at leesunhwa@kbfg.com. -- Ed. Maintain BUY; cut target price 18.6% We maintain BUY on HYBE but cut our TP by 18.6% (KRW430,000→KRW350,000), as we lower 2022E/2023E OP by 14.4%/26.2% to reflect an expected hiatus for BTS. However, in terms