The author is an analyst of NH Investment & Securities. She can be reached at jiyoony@nhqv.com. -- Ed. F&F’s consolidated 3Q22 OPM likely reached 30%, helped by brisk domestic casual/sports sales and the recognition of sales in advance for F/W exports to China. In 4Q22, earnings momentum remains val
The author is an analyst of KB Securities. He can be reached at jk.lim@kbfg.com. -- Ed. Near-term concerns easing, but fundamental issues remainKTB yields should retreat for a while on hopes for a U.S. Fed pivot amid slowing economic indicators and the U.K.’s efforts to stabilize its financial marke
The United States is increasingly curbing the growth of the Chinese semiconductor sector and this is posing an increasing burden on Samsung Electronics and SK Hynix, which are manufacturing products in China in close business relations with it.According to the New York Times, the U.S. Department of
People Power Party lawmaker Kwon Myung-ho said on Oct. 5 that South Korea’s annual imports from Japan of 100 items in the material, component and equipment (MCE) industries increased from US$11.3 billion to US$13.4 billion from 2019 to 2021.Specifically, semiconductor-related imports increased 58.9
Hyundai Motor Group’s EV sales volume in the U.S. market dropped last month in the wake of the implementation of the Inflation Reduction Act.Specifically, the Hyundai Ioniq 5 sales volume was 1,306 in September. The figure was 1,517 in August and 1,984 in July. The Kia EV6 sales volume increased fro
The author is an analyst of NH Investment & Securities. He can be reached at sw.kang@nhqv.com. -- Ed. We view the sharp rise in bond market volatility in September as being the cost of losing trust in CBs. But, after the September FOMC, a massive sell-off of TIPS was verified at end month. This sign
The Korea Institute for Industrial Economics and Trade said in its report on Oct. 3 that exports from the South Korean defense industry hit an all-time high of US$7.25 billion last year and are expected to exceed US$20 billion this year.Korea's annual arms exports topped US$1 billion for the fir
The South Korean government is strengthening its cooperation with Germany, the European Parliament and Japan in response to the U.S. Inflation Reduction Act.The Ministry of Trade, Industry and Energy of South Korea and the Ministry for Economic Affairs and Climate Action of Germany recently discusse
As POSCO and Hyundai Steel have difficulties in securing steel products for export due to production disruptions, they have trouble in coping with exchange rate risks.Steelmakers such as POSCO and Hyundai Steel have dealt with fluctuations in exchange rates through a "natural hedge," which means pur
The Bank of Korea announced on Sept. 29 that South Korea’s net barter terms of trade index was 82.49 last month, down 10.3 percent from a year ago, down 0.3 percent from the previous month, and the lowest since records began in January 1988.According to the bank, this deterioration in terms of trade
The author is an analyst of NH Investment & Securities. He can be reached at pk.park@nhqv.co. -- Ed. We expect Dentium to report 3Q22 sales of W91.8bn and OP of W30.6bn. In China, VBP bidding prices are likely to be released in October~November. Results of the bidding are to determine Dentium’s earn
The Federation of Korean Industries held a seminar on Sept. 28 to discuss the United States’ supply chain internalization measures and South Korea’s response.The keynote address was delivered by independent lawmaker Yang Hyang-ja, head of the Semiconductor Industry Special Committee of the National
The author is an analyst of Shinhan Investment Corp. He can be reached at yjjung86@shinhan.com. -- Ed. Auto stocks to serve as a defensive play in the current environmentAlmost all consumer goods cannot escape the impacts of an economic slowdown or recession. Auto stocks are typical cyclical stocks
The author is an analyst of NH Investment & Securities. He can be reached at pk.park@nhqv.co. -- Ed. Although boosting our 2023 OP estimate, we lower our TP on Daewoong to W230,000 in reflection of a drop in peer group valuation multiple. We expect the firm to post 3Q22 sales of W303.5bn and OP of W
Korea Trade Insurance Corp. (K-SURE) signed a co-fianancing agreement with the Export-Import Bank (EXIM Bank) of the United States in New York on Sept. 22 to cooperate to create a one-stop shop facility that will provide joint support for U.S. and Korean export projects in new and strategic industri
Even Korea’s six main industries that buttress the national economy are shaking from their foundations due to a rise in the exchange rate, high interest rates and soaring raw material prices.Many experts are concerned that Korean companies in the so-called six core sectors -- semiconductors, electri
The Ministry of Economy and Finance announced on Sept. 25 that it would work together with banks so they can increase their forward exchange purchase for shipbuilders, where selling is increasing for an increase in orders and credit limits are being reached for a rise in exchange rate.According to t
Daewoo Shipbuilding & Marine Engineering (DSME) will be sold to Hanwha Group.The Korea Development Bank (KDB) announced on Sept. 26 that it will sell part of its stake in DSME to Hanwha Group for about 2 trillion won. After the sale, KDB's stake will be lowered from 55.7 percent to 28.2 percentT
The author is an analyst of NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com. -- Ed. Doosan Corp’s liquidity issues have been successfully addressed. Moving ahead, growth potential should strengthen for the firm on stable in-house business (led by electronics), recognition of T
The authors are analysts of Shinhan Investment Corp. They can be reached at idh@shinhan.com and jiunmyoung@shinhan.com, respectively. -- Ed. Takeaways from DX Korea 2022Defense Expo Korea (DX Korea) is a platform for land forces equipment exhibition. This year marks the fifth biennial event since it