Neowiz employee fined for insider trading in Japan

[THE INVESTOR] Japanese financial authorities have uncovered insider trading concerning Korean games maker Neowiz Games’ Japanese subsidiary, local news reported on June 21. According to reports, an employee became aware that the company was planning to buy up shares of its Japanese unit Game On. Having gained the information, the employee then traded Game On shares after the plans were made public in 2011.At the time, Neowiz Games acquired Game On shares worth 2 billion yen (US$19 million) to r

June 21, 2016

Korean dealers kick off direct sale of KOSPI 200 futures to US investors

[THE INVESTOR] Korean securities firms started to trade Korea Exchange’s flagship KOSPI 200 futures directly with US customers, KRX said on June 21.KRX, the country’s bourse operator, said it has cleared hurdles that had undermined the sales of Korean derivative products in the US by receiving approvals from two US financial regulators. “The sales activity related to derivative products is expected to gain momentum in the US,” said Yoo Hee-wook, director of Derivative Product Marketing division.

June 21, 2016

Foreign investors keep buying Hana Financial stocks

[THE INVESTOR] Foreign investor are maintaining a strong appetite for Hana Financial Group, a major South Korean banking group, while overseas holders have reduced exposure to other Korean bank stocks as ongoing corporate restructuring weighs on local lenders. Foreign holdings of Hana Financial Group shares rose 0.9 percentage points during the past three months, from 64.8 percent in March to 65.7 percent in June. Foreigners bought some 3.27 million of Hana stocks since mid-March. In stark to co

June 21, 2016

[ANALYST REPORT] Hanmi Pharm: Beijing Hanmi’s R&D potential

Chinese government regulation to impact Chinese pharma market Over Jun 16~17, Hanmi Pharm’s Chinese subsidiary—Beijing Hanmi—invited analysts to a site visit for the first time in seven years. According to IMS data, the Chinese pharma market was worth RMB1.1tn in 2015 (grew at a 2011~2015 CAGR of 16.0%), and the market (according to IMS estimates) will grow at a 2016~2020 CAGR of 6.9%. Growth factors for the Chinese pharma market: expanding health insurance coverage; growing private healthcare e

June 20, 2016

Rothwell International IPO oversubscribed

[THE INVESTOR] Chinese auto parts manufacturer Rothwell International, which took orders from retail investors for its initial public offering on Korea’s tech-heavy KOSDAQ next week, was 328 times oversubscribed with deposits totaling 3.15 trillion won (US$2.71 billion won), the company said on June 20. “As a listed Chinese firm, we will take the lead in resolving China discount and creating premium,” said Zhou Xiangdong, the company’s chief executive. Rothwell International started taking subsc

June 20, 2016

[ANALYST REPORT] Hana Financial Group: Foreigners are buying for good reasons

BUY and 6M TP of W33,000 maintained- The target price is derived by applying the target P/B of 0.4x to the 2016E BPS of W77,857.- Over the last three months, Hana Financial Group’s foreign ownership gained nearly 0.9%p. This compares with most of its peer banks (other than Woori Bank), which saw their foreign ownership decline considerably.-There are two reasons why foreign investors are buying Hana Financial Group. First, its exposure to large company loans is forecast to decrease a whopping 7.

June 20, 2016

Railway-related stocks surge on national railroad network plan

[THE INVESTOR] Railway-related stocks surged on June 20 as the Korean government confirmed its national railroad network plan . Shares in Hyundai Rotem, the country’s train manufacturer, rose 6.69 percent to close at 18,350 won (US$15.79). The company’s first vendor Daeho AL closed at 2,750 won, up a whooping 21.41 percent. Stocks listed on the secondary market KOSDAQ including Woowon Development and DAEATI hit the upper price limit. Korea Train Express.On June 17, the Ministry of Land, Infrastr

June 20, 2016

Samsung C&T shares rally on hopes of holding firm transformation

[THE INVESTOR] Shares of Samsung C&T, the fashion and trading arm of Samsung Group, continued to rally June 20 on expectations that it would benefit from the group’s ongoing corporate restructuring. Its shares closed at 122,000 won (US$105.04), up 2.09 percent from the last trading session on June 17 when it climbed 3.46 percent. “If Samsung C&T successfully transform itself as the holding company of Samsung Group, it will secure more than 20 percent of Samsung Electronics’ business units and ot

June 20, 2016

Seoul shares close higher on eased Brexit concerns

[THE INVESTOR] South Korean stocks closed higher on June 20 on eased concerns over the UK’s exit from European Union following a lawmaker’s murder. The benchmark Korea Composite Stock Price Index increased 27.72 points, or 1.42 percent, to close at 1,981.12. Trade volume was moderate at 385 million shares worth 3.9 trillion won (US$3.3 billion), with winners outnumbering losers 658 to 169. The KOSPI rose from the revived risk-on appetite after the latest Brexit polls showed voters favor Britain

June 20, 2016

Chinese operations expected to boost Hanmi Pharm

[THE INVESTOR] NH Investment and Securities maintained Hanmi Pharm’s target price at 1.1 million won (US$944) on June 20, saying that the pharma firm’s Chinese branch is expected to continue expanding. Hanmi Pharm opened at 660,000 won on the stock market June 20, up 10,000 won from June 17. According to NH Investment and Securities, Beijing Hanmi has recorded an average annual growth rate of 21.2 percent since 2006. Saying that Beijing Hanmi is expected to apply for clinical trials and licenses

June 20, 2016

FSC to approve Bank of China’s participation in yuan-based derivatives market

[THE INVESTOR] The Bank of China, one of China’s four major state-owned banks, has decided to participate in yuan futures market launched by the Korea Exchange last year, sources said June 20. Financial Services Commission, Korea’s top financial regulator, is expected to give a preliminary approval to the Seoul branch of BOC soon as the bank applied for operation license to trade yuan-based derivatives products here in March. Once the Chinese bank receives the green light, the Korean authority w

June 20, 2016

Seoul shares open higher on eased Brexit fears

[THE INVESTOR] South Korean shares opened higher on June 20 due to eased Brexit concerns following the murder of a British politician who was in favor of remaining in the European Union.Polls conducted after her murder last week show that more citizens now favor staying in the EU rather than leaving, a contrast from earlier. The benchmark Korea Composite Stock Price Index soared 18.15 points, or 0.87 percent, to 1,970.38 during the first 15 minutes of trading. Most large cap stocks traded higher

June 20, 2016

South Korean share prices rebound on eased Brexit woes

[THE INVESTOR] South Korean stocks snapped a six-day fall to close higher on June 17 on eased concerns over a British exit from the European Union. However, the rebound was still shaky amid lingering uncertainties in the global economy. The Korean won fell against the U.S. dollar.The benchmark Korea Composite Stock Price Index edged up 1.41 points, or 0.07 percent, to close at 1,953.4. Trade volume was at 478.81 million shares worth 4.42 trillion won (US$3.78 billion), with winners outnumbering

June 17, 2016

[ANALYST REPORT] LG Electronics: MC division to again disappoint

Rather than a demand rebound, LG Electronics (LGE) earnings are to continue being buoyed by its competitiveness in the home entertainment and home appliances markets (absence of rivals strong enough to supplant its positions in these markets). However, we expect earnings at its MC division to remain weak.2Q16 preview: MC division to book disappointing earnings We expect LGE to register 2Q16 sales of W14.4tn (up 3% y-y, up 8% q-q) and operating profit of W608.0bn (up 149% y-y, up 20% q-q) on weak

June 17, 2016

[ANALYST REPORT] The global robot revolution is here, and growing

The past month has seen a spate of robotics M&A activity around the world. China tipped its hand to its RIoT ambitions with a USD5bn offer for Germany’s Kuka, one of the world’s leading robotics companies. Kuka has traditionally been a strong player in the industrial robot space but recently has been aggressively moving into the service robotics domain due to the expected massive growth of the segment.Toyota is also reported to be in talks with Google to acquire Boston Dynamics and Schaft—the wo

June 17, 2016