The authors are analysts of Shinhan Investment Corp. They can be reached at ym.ko@shinhan.com and doyeon@shinhan.com, respectively. -- Ed. Equipment stock performance and market conditionsShort-term correction triggered by worries over slowing demandShare prices of IT equipment suppliers dropped sig
The Financial Supervisory Service (FSS) is investigating Meritz Asset Management CEO John Lee over the allegation that he invested in a fund using a borrowed-name account.The FSS inspected Meritz Asset Management from May 23 to June 7 to detect violations of the investment-related regulations.The fi
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. This year, KEPCO and KHNP (a 100% subsidiary of KEPCO), are highly likely to win export deals. Also boding well for KEPCO is the Korean government’s nuclear power-friendly policies. We present KE
The stock price of HYBE dropped 24.87 percent to close at 145,000 won per share on June 15. Disposal by institutional investors amounted to 46.5 billion won and the lowest level of the day was 139,000 won. The market cap of the company dropped 1.985 trillion won on June 15 alone. This is because BTS
Goldman Sachs has revised up its forecast for Bank of Korea’s terminal policy rate to 2.75 percent from 2.5 percent previously and brought forward the peak timing to November from May 2023, on accelerated Fed tightening, higher oil prices and a recent weakening of the Korean won against the U.S. dol
The author is an analyst of KB Securities. She can be reached at leesunhwa@kbfg.com. -- Ed. BTS announces indefinite hiatus— On Jun 14, BTS announced an indefinite hiatus via their FESTA dinner video on their YouTube channel, BANGTANTV.— Following the release of their anthology album, Proof, on Jun
It is increasingly pointed out that multiple governments will not allow the Korean Air-Asiana Airlines merger in the end, and then the aviation industry of South Korea will take a hit.At the same time, it is said that the failure is not a bad ending for Korean Air in that the company’s sales and pro
The author is an analyst of NH Investment & Securities. She can be reached at hzl.lee@nhqv.com. -- Ed. In line with the ongoing global transition towards an endemic phase, offline leisure and entertainment activities are set to resume in earnest. Following the past two-year-long restrictions, pent-u
The author is an analyst of NH Investment & Securities. She can be reached at hzl.lee@nhqv.com. -- Ed. Although HYBE shares have performed sluggishly due to BTS-related uncertainties, we believe that now is the time to pay attention to: 1) the simultaneous online streaming of offline concerts; 2) th
The author is an analyst of KB Securities. She can be reached at leesunhwa@kbfg.com. -- Ed. Maintain BUY, target price of KRW430,000 We maintain BUY and TP of KRW430,000 on HYBE. The stock is trading at 37.6x 12m fwd P/E (vs. 44.3x historical P/E average) on the pending issue of military service for
The Federation of Korean Industries recently analyzed the 100 largest enterprises in South Korea in terms of sales and announced on May 2 that the 2021 and 2021 investment of the 98 excluding Samsung Electronics and SK Hynix is smaller than their 2018 and 2019 investment.“The non-financial two-year
Hyundai Research Institute said in its report on May 1 that stagflation is imminent in the South Korean economy, with oil and raw material prices rising along with interest rates and the won-dollar exchange rate.In March this year, consumer prices rose 4.1 percent, the highest since December 2011. T
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY but lower target price by 5.6% to KRW85,000 We lower our TP by 5.6% to KRW85,000 (12m fwd BVPS x 1.7x target P/B) to reflect a drop in 3y avg. ROE (13.3%→12.3%) attributable to revised down earning
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY but lower target price to KRW140,000 We maintain BUY on SK hynix but lower our TP by 6.7% to KRW140,000 (12m fwd BVPS x 1.4x target P/B), as 2023E/2024E NP (attributable to controlling interests) w
The Korea Economic Research Institute announced on April 26 that South Korea’s national debt (D1) has increased 62.9 percent from 660 trillion won to 1,075 trillion won since 2017. “The average annual increase in 2012 to 2023 is estimated at 3.2 percent, which is 1.8 times the OECD average, and the
The author is an analyst of KB Securities. She can be reached at leesunhwa@kbfg.com. -- Ed. Maintain BUY, target price of KRW430,000 We maintain BUY and TP of KRW430,000. 1Q22 revenue should miss the consensus on slowing new merch sales for BTS PTD concerts and major artists’ inactivity. However, 2Q
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY but lower TP by 12% to KRW150,000 We lower our 12m TP by 12% to KRW150,000 (based on 12m fwd BVPS and target P/B of 1.45x) for SK hynix as we reflect downward revisions to 2022E and 2023E NP (attri
The three-year government bond yield rose 0.053 percentage point to 2.837 percent on April 4. It is the highest since June 9, 2014, when the yield was 2.84 percent. The yield has jumped no less than 1.04 percentage points since the beginning of this year.Likewise, the 10-year yield rose 0.058 percen
The author is a strategist of NH Investment & Securities. He can be reached at lawrence.kim@nhqv.com. -- Ed. Negatives abound in the stock market, including reduced GDP growth projections, galloping inflation, and the US’s monetary tightening. In January, the market plunged on excessive concerns ove
The author is an analyst of NH Investment & Securities. He can be reached at esshim@nhqv.com. -- Ed. As Korea’s number-one online payment provider, NHN KCP’s earnings are rising in line with the expansion of online shopping market. Despite concerns over a slowing in market growth in the post-pandemi