Hyundai Motor share prices slip after HHI block deal

[THE INVESTOR] Hyundai Motor shares fell on June 30 following the news of a block deal by Hyundai Heavy Industries and Hyundai Samho Heavy Industries on the previous day.On June 30, Hyundai Motor closed 2.52 percent lower at 135,500 won (US$ 117.5).Hyundai Motor’s automotive affiliates Kia Motors and Hyundai Mobis also closed lower. Kia shares closed at 43,200 won, down 1.37 percent, while Hyundai Mobis closed at 252,000 won, down 2.51 percent. Hyundai Heavy and Hyundai Samho sold 1.24 million a

June 30, 2016

[ANALYST REPORT] Tire: Earnings momentum to slow down in 2H16

We find that demand for replacement equipment (RE) tires in Europe and the US has been slowing down from 2Q16, due mainly to the rise in inventory levels in sales channels. Global demand growth is continuing at a sluggish pace, estimated around 2% YTD-2016, making it difficult to raise tire prices. Meanwhile, domestic tire companies are likely to post solid operating profit for 2Q16 as a whole, but may see earnings momentum turn sluggish from 2H16 due to the rise in raw material input prices and

June 30, 2016

[ANALYST REPORT] Korea Development Bank: Capital buffers sufficient to absorb losses from exposures to shipbuilders and shippers

We expect Korea Development Bank (KDB, Aa2, stable) to report continued asset pressure from its exposures to the shipbuilding and shipping industries. However, its capital buffers are sufficient to absorb related credit costs, even under our stressed scenario.The Korean government‘s (Aa2 stable) announcements on 8 June of its Restructuring Plan for the Shipping and Shipbuilding Industries and Measures for the Recapitalization of Policy Banks do not change the fundamental credit issue facing the

June 30, 2016

[ANALYST REPORT] Construction: Government moves to stabilize presales market

WHAT’S THE STORY?2H policy includes plan to stabilize presales market: Korea’s Ministry of Strategy and Finance yesterday released its 2H economic policy, with a KRW20t financial improvement plan (including a KRW10t supplementary budget), while policies related to housing and construction comprise measures to: 1) stabilize the nation’s overheated presales market; 2) stimulate rentals via REITs; 3) expand the infrastructure for publicprivate partnerships [PPPs]; and 4) support overseas orders. We

June 30, 2016