Only 2 in the Year of the Ox... Will the Emperor Liquor Drought End in the Year of the Tiger?

On the 30th, KOSPI closed at 2,977.65, down 15.64 points (0.52%) from the previous trading day. Dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Lee Seon-ae] Will the scarcity of "Emperor Stocks" priced over 1 million KRW per share be resolved in the Year of the Black Tiger 2022? In the Year of the Ox, the domestic stock market had only two such Emperor Stocks, making the situation quite bleak. However, with many ambitious stocks aiming to become Emperor Stocks in the new year, attention is focused on the outcome.

According to the Korea Exchange on the 31st, as of the last trading day of this year's stock market, there were only two domestic Emperor Stocks: LG Household & Health Care and Taekwang Industrial. Stocks priced over 1 million KRW per share are commonly called Emperor Stocks. This means that across both KOSPI and KOSDAQ, only two stocks exceeded 1 million KRW. LG Household & Health Care and Taekwang Industrial closed the previous day at 1,097,000 KRW and 1,043,000 KRW respectively.

Samsung Biologics, LG Chem, and NCSoft briefly surpassed the 1 million KRW mark this year but failed to maintain their status as Emperor Stocks. Samsung Biologics reached 1,047,000 KRW on August 18, LG Chem hit 1,050,000 KRW on January 14, and NCSoft touched 1,048,000 KRW on February 8, momentarily drawing attention as Emperor Stocks. However, following a downward trend, Samsung Biologics ended the last trading day of the year at 903,000 KRW, LG Chem at 615,000 KRW, and NCSoft at 643,000 KRW.

The most promising candidates to become Emperor Stocks next year include F&F, Samsung Biologics, Samsung SDI, and NCSoft. F&F recorded a peak of 998,000 KRW on the 29th and closed the previous day at 945,000 KRW. It is practically the frontrunner to claim the Emperor Stock title next year. According to financial information provider FnGuide, the consensus target price for F&F is 1,137,500 KRW, about 30% higher than the current price. Seo Hyun-jung, a researcher at Hana Financial Investment who set a target price of 1.2 million KRW, said, "F&F is expected to improve profitability through performance visibility based on high brand awareness and operating leverage expansion," adding, "Sales are projected to grow at an average annual rate of 25% until 2023 through entry into the Chinese market."

The securities industry's outlook (target prices) for Samsung Biologics, NCSoft, and Samsung SDI also averages above 1 million KRW. Samsung Biologics, considered a strong candidate to break the 1 million KRW barrier, is currently fluctuating in the 900,000 KRW range but is expected to reach the 1 million KRW mark again once the correction ends.

Samsung SDI also shows bright growth prospects due to the global expansion of the electric vehicle market and surging demand. Kim Cheol-jung, a researcher at Mirae Asset Securities who set a target price of 1.3 million KRW, stated, "Samsung SDI maintains the most stable performance among Korean battery cell companies and is expected to have the highest order backlog growth rate going forward." Kang Dong-jin, a researcher at Hyundai Motor Securities, set a target price of 1 million KRW and said, "Samsung SDI's stock price will be re-evaluated following the listing of LG Energy Solution."

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