Report

Hyundai Marine & Fire (001450.KS): Earnings momentum to remain solid

  • -  4Q17 net income, at KRW66.8bn, was in line with the consensus, helped by a 1.6%p YoY improvement in the loss ratio and higher investment income (+8.1% YoY). We expect the long-term risk loss ratio and AUM to continue to improve in 2018.

  • -  Investment income for the quarter rose 8.1% YoY on the back of solid growth in AUM (+9.5% YoY) and stable investment yield (3.1%, albeit slightly lower YoY). We expect investment income to continue to grow as we believe AUM will increase further in 2018.

  • -  Earnings will likely remain on the upside track in 2018. We maintain BUY and our target price of KRW53,000.

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
Jin Sang Kim

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