LG Energy Solution is considering receiving subsidies set by the U.S. Inflation Reduction Act (IRA) in cash. This is because if the subsidies are received in cash rather than tax credits, they will be included in operating profit, resulting in a significant performance improvement in the future.Acco
The U.S. House Committee on Foreign Affairs has voiced that allies such as South Korea should not be unfairly harmed by the Inflation Reduction Act (IRA)."Since the enactment of the IRA last year, two of our key allies in the Indo-Pacific region, South Korea and Japan, have expressed concerns about
The author is an analyst of NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.While internal and external conditions have deteriorated markedly, we see no need for concern toward capital ratio figures. We see expansion of shareholder return as providing a potential trigger for s
The U.S. Department of the Treasury is about to release detailed rules of the Inflation Reduction Act. Attention is focusing on EV and EV-battery-related incentive criteria.According to the act, a tax credit of US$3,750 is provided for an EV battery with a ratio of components manufactured in North A
The concept of a silicon shield in the global semiconductor industry can be defined as the Taiwanese semiconductor industry’s role as a deterrent against Chinese military invasion. According to the concept, the entire world is reliant on Taiwan’s semiconductor industry and, as such, a Chinaese invas
The LA Times reported that the U.S. Inflation Reduction Act is adversely affecting Hyundai Motor Group and its EV sales volume in the United States.“The act is to provide subsidies for EVs manufactured and sold in the United States, such as those of Ford, GM and Tesla, and Hyundai Motor Company and
As Ford and CATL recently announced a plan to build a battery manufacturing plant in Marshall in the U.S. state of Michigan by investing US$3.5 billion, the U.S. Republican Party, which is conservative on diplomatic issues, is expressing concern about the project. According to foreign media reports
Hyundai Mobis will invest 10 trillion won over the next three years to secure competitiveness and retire 150 billion won worth of treasury stocks to enhance shareholder value. Chung Eui-sun, chairman of Hyundai Motor Group, was reappointed as an inside director of Hyundai Mobis.The company laid out
The author is an analyst of NH Investment & Securities. He can be reached at jaemin.ahn@nhqv.com. -- Ed. We anticipate notable earnings growth at KT’s new businesses, including its content, real estate holdings, and AI ventures. CEO appointment should be finalized within March, resolving market conc
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Change in management strategy includes lowered shareholder return target— Woori FG reported 2022 consolidated NP (attributable to controlling interests) of KRW3.17tn (+22.2% YoY). — Although KRW-based loans inc
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Suggested mid-term shareholder return of 30-40%; 4Q22 earnings miss on large-scale costsㅡ 2022 consolidated NP (attributable to controlling interests) came in at KRW4.64tn (+15.5% YoY). — NII rose 17.9% YoY wit
Hyundai Motor Group, which is building an electric vehicle (EV) plant in the U.S. state of Georgia to start operation in 2025, is planning to increase EV production in its U.S. plants where internal combustion engine vehicles have been produced.Specifically, starting from the first half of this year
The author is an analyst of NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com. -- Ed. Earnings at Samsung C&T have leveled up thanks to stable earnings at the construction division, brisk growth at the bio division, and the resolution of Covid-19 impacts. Moves to strengthen its
The U.S. Department of the Treasury recently revised tax law-related rules so that electric vehicle (EV) battery manufacturers in the United States can get tax credits in cash based on the Inflation Reduction Act even in the event of business loss and zero tax payment.“In the early stage of EV batte
The author is an analyst of NH Investment & Securities. She can be reached at yd.yoon@nhqv.com. -- Ed. We expect Mirae to report consensus-beating 4Q22 earnings, considering: 1) the reflection of one-off factors and gains from asset revaluations; and 2) a likely modest level of PF-related provisioni
POSCO successfully issued bonds abroad to attract an investment of US$2 billion. The U.S. dollar-denominated bonds, which were issued on Jan. 9, consist of US$0.7 billion of three-year, US$1 billion of five-year and US$0.3 billion of 10-year.The Fed raised rates by 50 basis points on Dec. 15. The bo
The author is an analyst of Shinhan Securities. He can be reached at yjjung86@shinhan.com. -- Ed. 4Q22 OP to come in at KRW300.3bn (+297% YoY, -42% QoQ)We now expect LG Energy Solution to post 4Q22 sales in line with market expectations at KRW8.2tr (+84% YoY, +7% QoQ), but believe operating profit w
The author is an analyst of KB Securities. He can be reached at jk.lim@kbfg.com. -- Ed. Bank of Korea focus on consumer prices; rate freeze in January would not signal end of rate upcycleBoth the BoK and U.S. Fed have stated that they will step down the pace of rate hikes, but financial markets are
The U.S. Department of the Treasury announced that countries other than the United States and its FTA partners may be added to the Inflation Reduction Act as places of production eligible for U.S. electric vehicle (EV) subsidies. This means South Korean EV battery manufacturers’ more leeway regardin
The stock prices of Hyundai Motor Co. and Kia Corp. are continuing to fall due to the impact of the U.S. Inflation Reduction Act (IRA) and high interest rates.According to market research firms, Hyundai Motor's Q4 operating profit and sales are estimated at 2.8844 trillion won and 38.155 trillio