[EQUITIES] HI Investment & Securities forecasts 17.1% rise in Hyundai Glovis’ Q2 earnings

[THE INVESTOR] HI Investment & Securities forecast on July 12 that Hyundai Glovis will post a 17.1 percent on-year increase in its second-quarter operating profit to reach 185.8 billion won (US$ 161.36 million). “Most divisions, with the exception of the pure car carrier business, are expected to achieve external growth, especially on the back of stabilizing raw material prices,” the brokerage said in a report. It added that Hyundai Glovis shares are undervalued considering its 10.3 price-earnin

July 12, 2016

[EQUITIES] Shinhan Investment forecasts 8.9% decline in Hotel Shilla’s Q2 earnings

[THE INVESTOR] Shinhan Investment on July 12 slashed its target price on Hotel Shilla shares to 85,000 won (US$73.80) from 90,000 won on its declining operating profit.Hotel Shilla’s second quarter operating profit is expected to fall 8.9 percent on-year to 26.80 billion won, the brokerage said. Shinhan’s projections are below the current market consensus of 3.32 billion won. “The company’s downtown duty-free shop is expected to post a 25.5 percent increase in sales, but its airport outlet is se

July 12, 2016

Foreign investors scoop up software stocks on upbeat Q2 earnings outlook

[THE INVESTOR] As investors went into risk-aversion mode, software firms are increasingly becoming their safe havens due to low price volatility and analysts’ optimistic forecasts on their earnings. According to market analysis provider FnGuide, foreign investors scooped up 600.5 billion won (US$521 million) worth of local software shares since May this year. Leading the pack was Naver, South Korea’s No.1 Internet portal, with 425.3 billion won, followed by Com2uS at 112.5 billion won, Samsung S

July 12, 2016

Korean Air issues W900b ABS

[THE INVESTOR] Korean Air Lines disclosed on July 11 that it has issued asset-backed securities to the value of 900 billion won (US$ 783 million). Korea Air’s latest ABS are backed by the company’s passenger fare income on domestic flights. The company had initially planned to issue ABS to the value of 700 billion won, but raised the figure to secure funds while interest rates are low, a Korean Air official told the local media. With the latest issuance, the company has issued ABS valued at 1.2

July 11, 2016

NPS loads up on auto, chemicals, pharma stocks

[THE INVESTOR] The National Pension Service padded up its portfolio with auto, chemical and pharmaceutical stocks while offloading food and textile shares this year, data showed on July 10. According to the latest financial industry data, of the companies in which the NPS holds 5 percent or more stake, 135 saw an increase during the first six months of the year. The figures are based on the NPS’ portfolio as of end-June. National Pension ServiceOf these, 13 are in the automotive industry, 12 in

July 11, 2016

[ANALYST REPORT] Tougher environmental regulations credit negative for KEPCO, subsidiaries

On July 5, the Korean government raised the minimum amount of electricity that generation companies should produce from renewable sources to 5 percent of each generator’s annual output for 2018, 6 percent for 2019 and 7 percent for 2020, a 0.5-1.0 percentage-point increase from its previous targets under the Renewable Portfolio Standard. The government also said that it aims to boost generators’ direct sales of renewable-sourced electricity to residential and industrial consumers. These initiati

July 11, 2016

[ANALYST REPORT] Korea’s growth to benefit from strong FDI

On July 4, Korea’s Ministry of Trade, Industry and Energy announced that foreign direct investment commitments in the first six months of this year increased by 18.6 percent from a year earlier to $10.5 billion, equal to 0.8 percent of 2015 GDP. This is credit positive for Korea (Aa2 stable) because, combined with government initiatives to restructure the Korean economy, these commitments will support economic growth, which has been negatively affected by dampened global demand. Total FDI commit

July 11, 2016

NPS picks BlackRock, GCM Grosvenor to manage hedge funds

[THE INVESTOR] South Korea’s National Pension Service -- the world’s third-largest public pension fund -- has selected Blackrock and GCM Grosvenor as general partners for managing 1 trillion won worth of hedge funds.This is 0.2 percent of the 500 trillion won (US$428.2 billion) of NPS’ assets under management. BlackRock is the world’s largest asset management firm that more than US$ 4.65 trillion AUM. GCM has invested over US$45 billion in hedge funds, private equity, real estate and infrastruct

July 11, 2016