Report

Daehan Steel (084010.KS): Rebar demand still robust

Despite lower-than-expected 3Q17 results, we maintain BUY on Daehan Steel in light of: 1) its stronger earnings outlook for 4Q17 on favorable seasonality and ASP hike; 2) the prospect of firm rebar demand in 2018; and 3) an attractive valuation of 0.5x P/B.

 

Underlying
Daehan Steel

Daehan Steel Co Ltd. Daehan Steel Co., Ltd. is a Korea-based company engaged in the manufacturing of steel products. The Company mainly produces steel bars, such as round steel bars and deformed steel bars, which are applied in construction of bridges, buildings, power plants and others. It also produces billets used as raw materials of steel bars, as well as bar-in-coils and wire rods. In addition, through its subsidiaries, it engages in the freight storage and transportation business, as well as development and leasing of non-residential buildings.

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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