[Click eStock] "KOSPI Rebounds, 8 Holding Companies' Stocks Also Rise"

[Asia Economy Reporter Oh Ju-yeon] Daishin Securities evaluated that as the domestic stock market rebounded from the 6th to the 10th, the market capitalization of holding companies also outperformed the weekly returns of KOSPI and KOSDAQ.

According to Daishin Securities on the 13th, the market capitalization of eight holding companies including SK, LG, CJ, Doosan, Hanwha, Hanjin Kal, Hyundai Heavy Industries Holdings, and Hyosung increased by 11.1% compared to the previous week. This level exceeds the weekly returns of KOSPI and KOSDAQ (7.8%, 6.7%).

Among the holding companies, the company with the highest weekly return was Hanjin Kal (25.0%), followed by Hanwha (15.8%), CJ (15.3%), and Doosan (14.3%).

Researcher Yang Ji-hwan of Daishin Securities analyzed, "The stock price strength of Hanjin Kal is presumed to be due to the ongoing management rights dispute and expectations of foreign investor inflows following inclusion in the MSCI index." Recently, the shareholding gap between the shareholder coalition and the current management has narrowed to about 0.41%, and since the number of circulating shares is small, if either party involved in the MSCI index inclusion or management rights dispute attempts to secure additional shares, it will inevitably act as a factor driving stock price increases due to supply and demand."

The Doosan Group has proceeded with due diligence for financial structure improvement by creditors, leading to changes in corporate governance and the sale of major affiliates. Researcher Yang diagnosed, "Doosan Solus, which holds future growth industry items, surged due to news of its sale progress, and the stock prices of other affiliates and Doosan also continued their rebound."

Daishin Securities selected SK, CJ, and Hyundai Heavy Industries Holdings as recommended stocks in the holding company sector.

In the case of SK, the SK Biopharm listing issue is anticipated. It is known that the securities registration statement will be finalized in April to May, and the listing will be completed within the first half of the year. Regarding CJ, attention was drawn to the disclosure that its subsidiary CJ ENM decided to dispose of 2.25 million shares of its subsidiary Studio Dragon for 166 billion KRW. The purpose of the disposal is to secure investment funds for future growth businesses and strengthening competitiveness, and after the disposal, CJ ENM's stake in Studio Dragon will decrease to 58.18%.

Considering that Hyundai Heavy Industries Holdings is going through the worst market conditions in the first quarter of this year, the management's strong commitment to shareholder returns, and valuation, it was judged that buying is necessary.

Researcher Yang said, "Hyundai Heavy Industries Holdings is expected to record an operating loss of about 425 billion KRW in the first quarter of this year, falling short of market expectations," and analyzed, "This is because of the operating loss of its main affiliate Hyundai Oilbank due to COVID-19 and the sharp drop in oil prices, as well as the expected poor performance of Hyundai Global Service and subsidiaries." However, he evaluated, "The poor performance due to ultra-low oil prices and COVID-19 has already been reflected in the stock price."

This content was produced with the assistance of AI translation services.