The International Monetary Fund (IMF) has warned of possible corporate debt distresses in Asian countries, singling out Korea as becoming one of the most vulnerable if high interest rates persist.In its report on corporate debt in Asia on May 29, the IMF aggregated by country the percentage of total
China’s SEMCORP, the world’s No. 1 maker of separators, is set to open a plant in Europe soon. It is expected to expand its market share in Europe through a price war and heat up competition with Korean and Japanese separator makers in the European market.SEMCORP is expected to complete its plant in
As competition intensifies in the electric vehicle (EV) market, a “supply chain war” over key battery minerals is heating up. Not only battery cell and material companies that directly need minerals, but also automakers and energy companies have jumped into the mineral acquisition battle.General Mot
In the first quarter, the size of South Korea's household debt surpassed the Gross Domestic Product (GDP). Among the 34 major countries, South Korea was the only one unable to repay all household debt with its annual national income. It was also the sole country among the major economies globall
The author is an analyst for Shinhan Securities. He can be reached at kw.eun@shinhan.com -- Ed.Reasons behind weak share performance of SKShare performance has remained sluggish with SK's major listed and unlisted subsidiaries posting weaker earnings amid a shift in investor sentiment toward the
The author is an analyst for Shinhan Securities. He can be reached at sokang@shinhan.com -- Ed.1Q23 review: Focus on Black Desert Online and marketing cost controlPearlAbyss reported operating profit of KRW1.1bn (-78.9% YoY, -70% QoQ, operating margin of 1.3%) on sales of KRW85.8bn (-6.2% YoY, -16.9
The author is an analyst for NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed. In 2H23, the domestic housing market recession is likely to sustain. Though the downtrend of housing and Jeonse prices should slow, a recovery looks unlikely in a near term noting contracting dem
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Recently, domestic insurance companies have announced their first IFRS17-based earnings results. However, uncertainties related to accounting principle changes have escalated further. Market participa
The author is an analyst for Shinhan Securities. He can be reached at bh.lee@shinhan.com -- Ed.1Q23 review: Decent top-line growth vs. disappointing marginsGolfzon reported consolidated operating profit of KRW41.5bn (-18.1% YoY) on sales of KRW187bn (+21.5% YoY) in 1Q23. Sales beat market expectatio
A recovery of the Korean and global stock markets has led to an increase in both Korea’s external financial assets and liabilities. As assets grew more than liabilities, net external financial assets (external financial assets minus external financial liabilities) also edged up. Net external financi
The author is an analyst for Shinhan Securities. He can be reached at snowKH@shinhan.com -- Ed.Earnings to improve gradually from a sluggish 1Q23TSE registered an operating loss of KRW6.6bn in 1Q23. The company saw a dip in overall top line with sales from probe cards falling to KRW4.5bn (-74% YoY),
Recently, the secondary battery industry and the automotive industry have been competing for leadership in battery packs. While battery companies prefer turnkey supply from battery cells to modules and packs, the automotive industry has a position that it cannot lose out on the lead in manufacturing
The author is an analyst for NH Investment & Securities. He can be reached at ys.jung@nhqv.com -- Ed.Investment points for the shipbuilding sectors include: 1) rising newbuilding prices; and 2) order backlog growth (sales basis). In 2023, a slot shortage is likely to result in a decline in absolute
The author is an analyst for Shinhan Securities. He can be reached at bh.lee@shinhan.com -- Ed.1Q23 review: Sales and operating profit worse than expectedIncross posted consolidated sales of KRW10.3bn (+10.2% YoY) and operating profit of KRW2.2bn (+21.1% YoY, operating margin of 21.2%) in 1Q23, miss
The author is an analyst for NH Investment & Securities. He can be reached at ys.jung@nhqv.com -- Ed.With the transport price upsurge induced by consumption growth and supply chain bottlenecks amid the Covid-19 crisis coming to an end, transport companies are likely to see profits decline. While the
The author is an analyst for NH Investment & Securities. He can be reached at esshim@nhqv.com -- Ed.Along with continued high sales growth for casino monitors, a full-scale earnings turnaround at Tovis’s automobile display division is set to start from 3Q23. The recent acquisition of GloquadTech, an
The author is an analyst for Shinhan Securities. He can be reached at jinmyung.lee93@shinhan.com -- Ed.Chemical sector at the crossroads of survivalThe petrochemical sector is cyclical in nature, where profits generated during an up- cycle are invested during a down-cycle to prepare for the next boo
The author is an analyst for NH Investment & Securities. He can be reached at jaekwang.rhee@nhqv.com -- Ed.Moving ahead, the driving force for metal demand will likely be energy transition policies. Whereas Chinese economic growth (the previous main catalyst behind metal demand since 2000) has slowe
As a sharp interest rate hike in the United States has led to a commercial real estate bankruptcy crisis following local banks in the United States, a Korean lawmaker said that Korea’s overseas real estate funds to mature within three years have reached 30 trillion won. As a decline in real estate v
Beginning in 2025, a game of battery chicken is anticipated to kick off among South Korean firms like LG Energy Solution, SK on, and Samsung SDI, and Chinese companies such as CATL. This comes as a result of major companies' factory expansions that are projected to manufacture around 50% more ba