Report

KISCO Holdings (001940.KS): Lower-than-expected1Q but valuation attractive

  • -  1Q18 operating profit came in at KRW6.2bn, which was lower than our estimate.

  • -  Subsidiaries KISCO (104700.KS, BUY; fourth-largest rebar maker in Korea; 40.8% ownership) and Hwanyoung Steel (sixth-biggest rebar producer in Korea; 83.5% ownership) help to keep cash flow

    pumping.

  • -  We maintain BUY and our target price of KRW17,800 (pre-split price KRW89,000).

Underlying
KISCO Holdings

KISCO Holdings is a holding company. Through its subsidiaries, Co. is engaged in the manufacture of iron and steel including steel bars, pipes and sheets.

Provider
Hyundai Motor Investment & Securities
Hyundai Motor Investment & Securities

Hyundai Motor Investment & Securities is the investment banking arm of the Hyundai Motor Group. The company offers stock brokerage and advisory services; derivative products brokerage and advisory services; wrap account portfolio management services; and VIP wealth management and tax planning, institutional equities, derivatives, and futures brokerage services, as well as sells investment and institutional products. It also provides equity offering, ABS, real estate PF and real estate PF securitization, offshore SOC, structured financing, asset securitization, real estate sales, IPO advisory, and private equity fund and fund management services; and CMA/RP portfolio management and fixed income based investments, as well as involved in the issuance, management, and brokerage of OTC derivatives. In addition, the company offers research services, including macro economic forecasts and stock market outlook, industry overviews and forecasts, fixed income strategies, corporate credit analysis, and valuation analysis. Further, it offers a range of retirement and pension services for individuals and corporate members; portfolios and asset allocation consulting and marketing services; proposing retirement pension plans; contract and payment management services; pension plan advisory and actuarial services; and system development and implementation services, as well as operates call centers for retirement pension services, etc. 

Analysts
Hyun Wook Park

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