Mirae Asset Securities’ Korean stock recommendations (March, April 2024)
In last month’s National Assembly elections, the Democratic Party won a landslide victory in 161 of the 254 directly elected seats. This will have the following implications for investors:
📰 South Korea’s election caused a bit of a setback for capital market reforms (Nikkei Asia) April 2024 🗃️
“For investors, this will be seen as a problem. Frustration not only with the value-up program but with the entire marketsaid Peter Kim, head of global distribution at KB Securities in Seoul.
“The ruling party has had a difficult time passing pro-business policies, and now we are likely to experience a similar situation for several more years,” he said.
“A left-leaning Congress may be less cooperative with tax incentives for corporate value-enhancement programs. Since incentives can be viewed as tax breaks for the wealthy,Jinwook Kim, a Citi Research economist, said in a report Wednesday.
“We expect Share price momentum for corporate value growth theme is likely to temporarily weaken over the next few months.“It will become operational again around the middle of the second half of 2024,” he said.
The problem is that Korea’s high inheritance tax prevents large corporations run by large families from enacting reforms that would help their stock prices rise.
📰 South Korea’s stock market stimulus plan disappoints investors (Nikkei Asia) March 2024 🗃️
Experts say, “Chaebols benefit from falling stock prices due to high inheritance tax”
This book was mentioned in Monday’s post. It is unclear whether this book has been translated into English.
🇰🇷 A Country Without Shareholder Rights – A Book Review (Douglas Research Insights) $
This insight is a book review of A country without shareholder rights (Country without shareholder rights)is one of the best books on Korean corporate governance.
There is so much wisdom in this book. The author details the numerous corporate governance issues in Korea and how to address them.
This book was published in January 2024 and was written by Park Young-ok, a famous Korean retail investor.
The first three issues and detailed explanations are not behind a paywall.
1) Comparison of corporate governance structures in the Korean and Taiwanese stock markets (PROBLEM)
2) Damage to shareholder value (problem) through physical division (splitting) of affiliates (SK On/SK Innovation, LG Energy Solution/LG Chemical, SK Bioscience/SK Chemicals, Kakao Bank/Kakao)
3) Korea’s incorrect merger method that can damage shareholder value (problem)
and:
The author notes that Korea’s overall corporate governance level is similar to that of the United States in the 1970s and 1980s, so there is much to catch up with.
However, Douglas noted that the book’s author is estimated to have invested more than 200 billion won (USD 150 million) in Korean stocks a few years ago, suggesting that minority shareholders and individual investors can still make money in the Korean stock market. It means.
You will have to be more selective and patient…
amazing asset securities (KRX: 006800 /KRX: 520003) It is Korea’s largest investment bank and stock brokerage firm by market capitalization. They consistently release free research materials and post them on their website. Korean stock recommendations.
Stocks to research for this month april This post includes (in the order covered, from most recent to the beginning of the month):
SK IE Technology, Cosmo Advanced Materials, Amore Pacific, Sup, Hyundai Rotem, GS Engineering & Construction, Hanwha Systems, KT, SK Telecom, Chong Kun Dang Pharmaceutical, Cosmax, Samsung SDS, Samsung Engineering, Classys, Hanwha Solutions, POSCO International, POSCO Future M, LG Energy Solution, LG Household & Health Care, Dentium, Hyundai Glovis, SK Hynix, Krafton, LG U+, LG Innotek, HD Hyundai Electric, Samsung BioLogics, Samsung C&T, LX Hausys, SM Entertainment, Dear U, JYP Entertainment, Lotte Novate Co., Ltd., Hyundai Construction, HYBE, Shinsegae, F&F, ST Pharm, Hyundai Autoever, Yuhan Corporation, LIG Nex1, Korea Aerospace Industries, Hanwha Aerospace, SoluM Co., Ltd., OCI Holdings , CJ Logistics, Daewoo E&C, GS E&C, DL Construction Co., Ltd., Samsung Electronics, Korean Air, Wemade, S-Oil, Samsung Electro-Mechanics, Samhwa Capacitor, Jin Air, Kakao
and March (since there were far fewer reports than usual):
Chong Kun Dang Holdings, HD Hyundai Electric, KEPCO, JYP Entertainment, Cosmax, Samsung Engineering, People & Technology, Creative Innovation System Co., Ltd.
Mirae Asset Securities publishes Korean stock recommendation research in English. When I click on that item website, i received No pop-ups They ask me what type of investor I am or where I am located. But there is this disclaimer. End of each research report PDF file:
This post is no You should quote directly from the website or the research document itself (beyond just stating the title of the report – keep the disclosures above in mind).
With the disclaimer in mind: research report Select a section of the website and corporate analysis Take a look on your phone, in another tab, or in your browser. A short title of the research piece (summarizing their thoughts and linking to a few paragraph summary on the website) and Advice on Stock Recommendations.
However, the summary and more detailed study included in the PDF file no Include a good long-term technical chart, a description of what the company does or a link to the investor relations page of your stock pick, current quotes or latest statistics, etc. It’s everything I hate whenever it’s unavailable.
To make your life easier, this post includes:
A title containing the stock name.
IR page link and Yahoo! This is a brief explanation of stock prices. Jae Won.
Link to Wikipedia page (for what it’s worth…)
The title of the report is linked to a brief summary overview of the report. amazing asset securities Website.
The link is amazing asset securities research report PDF file About stock selection.
It is the price/book (most recent quarter) ratio plus the forward or trailing P/E plus the dividend yield tied back to Yahoo! This is a financial statistics page.
The latest long-term technical charts financial resources linked back to Yahoo!
And as always, this post Provided for informational purposes only (And again, to make your life easier…). This does not constitute investment advice and/or recommendations…
Keep in mind that Mirae Asset Securities will do this to some extent. We are conducting sales research. You will probably see no or very few sell recommendations from them (along with all the usual conflicts of interest that would arise from doing so). Just like you rarely see sell recommendations coming from Wall Street…
But their stock research comes with good stock financing and is in English. (Again, many Korean stocks do not yet have IR pages or financial reports in English.) a good starting point Information for anyone interested in investing directly in Korean stocks.
SK IE Technology Co., Ltd. (KRX: 361610) is Manufacturing and Sales battery materials In Korea, Asia and Europe. The company operates through two segments: LiBS and New Business Segments. We develop and supply separators for IT devices and electric vehicle batteries. We manufacture film-based and ceramic-coated separators. These include flexible cover window materials for foldable displays.
Cosmo New Materials Technology Co., Ltd. (KRX: 005070) provide Secondary battery cathode active material Korea and internationally. We manufacture and supply high Ni cathode active materials used in electric vehicles and energy storage systems, such as lithium cobalt oxide, as well as cathode active materials used in IT secondary batteries such as smartphones, tablet PCs, and laptops. In addition, we supply color toner, MLCC release film, semiconductor package adhesive film, halogen-free insulating film, display materials, and magnetic tape.
Amore Pacific Co., Ltd. (KRX: 090430) Are you Korean Beauty and cosmetics tycoon, Sulwhasoo, Laneige, Mamonde, Etude House, Amore Pacific, and Innisfree, and more than 30 beauty, personal care, and health brands. Founded in 1945 by Chairman Seong-Hwan Seo, the company is currently managed by Chairman Kyung-Bae Suh, the founder’s son. It is the second largest cosmetics company in Korea and one of the top 10 cosmetics companies in the world.
