Hyundai Motor Group has brought the highest return to investors among the top five business groups in South Korea so far this year.
The group’s listed affiliates recorded a price earnings ratio of 15.22 percent this year as of July 4, the highest among the country’s five biggest business groups, including Samsung, SK, LG and Lotte, according to market tracking company FnGuide on July 8.
Among Hyundai Motor Group’s listed units, Hyundai Wia Corp. came in first with a stock price gain of 34.90 percent since the beginning of the year. Lee Jae-il, an analyst at Eugene Investment & Securities said, “The company’s recruitment of outside directors and implementation of restructuring is working.”
Kia Motors Corp. showed the second highest earnings rate with 25.56 percent over the same period. This was largely due to favorable exchange rate conditions.
In addition, eight out of 11 affiliates under Hyundai Motor Group recorded a rise in stock prices, including Hyundai Glovis Co. with 25.19 percent, Hyundai Mobis Co. with 19.55 percent, Hyundai Motor Securities Co. with 18.77 percent and Hyundai Motor with 17.30 percent.
The average price earnings ratio of Samsung Group’s 16 listed affiliates stood at 11.01 percent. Ten companies, including KOSPI market bellwether Samsung Electronics Co., saw their stock prices rise.
The price of Samsung Electronics shares fell to 37,000 won (US$31.34) early this year due to worsening semiconductor market conditions but it rose to 45,250 won (US$38.33) as of July 4 thanks to a steady demand from foreign investors. Affiliates that posted a double-digit rise in stock prices included Cheil Worldwide Inc. with 29.33 percent, Samsung Securities Co. with 22.70 percent, Hotel Shilla Co. with 16.34 percent and Multicampus Co. with 11.34 percent.
Nine out of 12 listed affiliates of LG Group saw their stock price increase 7.71 percent on average, while 10 out of 18 listed companies of SK Group had an average increase of 3.34 percent.
Only Lotte Group showed a minus growth of 8.45 percent among the top five business groups. Among its 11 listed affiliates, the share price of Lotte Confectionery Co. rose 71.13 percent, followed by Lotte Fine Chemical Co. with 32.52 percent and Lotte Chilsung Beverage Co. with 23.57 percent. However, the remaining affiliates suffered a big drop, including Lotte Corp. with -24.86 percent, Lotte Shopping Co. with -23.93 percent, Lotte Food Co. with -18.90 percent and Lotte Insurance Co. with -12.31 percent. The delay in Hotel Lotte listing dragged down the stock price of Lotte Corp., while Lotte Shopping suffered from sluggish sales in the distribution business. Lotte Food and Lotte Insurance saw their share prices drop because of the fall in the selling price of processed fat and the rise in loss ratio from long-term risks, respectively.