Report

Hanil Cement (003300.KS): Seeing signs of a concrete rebound

  • -  Shares have corrected recently as product prices remained flat while the prices of raw materials such as coking coal, gravel, and sand continued to increase.

  • -  The company is negotiating with construction companies to raise its remicon price for the Seoul metropolitan area; given the heightening raw material prices, we believe there is a high probability that the price of remicon will rise.

  • -  We expect higher raw material prices to lead to a remicon price increase and eventually a cement price increase.

  • -  We lower our target price from KRW200,000 to KRW160,000 but maintain BUY.

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
Jung-hwan Sung

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