[STOCK WATCH] HYUNDAI ROTEM rises 4%

Oct. 24, 2016 - 15:06 By thinkpool

- Compared with its close competitors, in spite of high Volatility, Earning Rate is low

- Target price KRW 24,200, has 27% disparate to increase compared with stock price.

- Institutions and Individuals buy, Foreigners sell

- Turnover Rate and Price Range both proper

- Institution 19.96%, Foreigners 24.72%

■ Market Review

On Oct. 24, HYUNDAI ROTEM (064350) increased 4.12% to 18,950 (US$16.70). It had declined 5.49% through the past month. Standard deviation, the variableness index, was 2.2% on the same period over one month.

Compared with its close competitors within the same industry, KOSPI, the monthly volatility of HYUNDAI ROTEM was at a low level, the earnings rate over one month was also the lowest with decline of stock price. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -2.4%. By tumbling of stock price, the return-on-risk is the lowest among its peer group in spite of low volatility. Moreover, compared with the KOSPI industry, the return-on-risk is below the industrial mean, -0.5, and thus the industrial comparison performance was not so good.

Comparing industry to the market, the KOSPI industry including HYUNDAI ROTEM records higher volatility but lower earning rate than Transport Equipment. Even though the earning rate of the industry is negative, the industry was more satisfactory than the market.

Close Competitors	Earning rate (%)			STD (1Mo)	Return on Risk (1Mo)
Close Competitors	1 Mo	3 Mo	6 Mo	STD (1Mo)	Return on Risk (1Mo)
HYUNDAI MIPO DOCK(010620)	12.2%	15.9%	19.9%	2.5%	4.8
SAMSUNG HVY IND(010140)	11.4%	9.2%	-0.2%	2.5%	4.5
Daewoo Shipbuilding(042660)	0.0%	0.0%	-17.7%	2.3%	0.1
HYUNDAI ROTEM(064350)	-5.5%	-3.8%	3.8%	2.2%	-2.4
SSANGYONG MTR(003620)	0.7%	7.3%	-2.8%	1.3%	0.5

Transport Equipment	-3.5%	0.9%	4.5%	1.0%	-3.5
KOSPI	-0.3%	-0.6%	1.3%	0.6%	-0.5

Target price KRW 24,200, has 27% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of HYUNDAI ROTEM is KRW 24,200. The stock price is KRW 18,950 as of yesterday, so there is KRW 5,250 (27%) disparate in order to be able to increase.

■ Earnings & Valuation

HYUNDAI ROTEM(064350): 2Q(Apr ~ June) of 2016 Earnings (reported at July 29. 2016)

	Revenue	Operating Income	Net Income
2Q of 2016	7,224.7 T	389.7 T	227.0 T
Previous Quarter	0.2% decline	26.4% increase	1355.1% increase
YoY	22.3% decline	turn to profit	turn to profit

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while HYUNDAI ROTEM's P/E ratio, a price-paid ratio of annual net income, is at the highest level, its P/B ratio, a financial ratio of a company's book value, is a proper value.

P/E ratio and P/B ratio

Close Compatitors	ROE	PER	PBR	Basic Date
HYUNDAI ROTEM(064350)	-17.0	-	1.1	June 2016
HYUNDAI MIPO DOCK(010620)	6.7	11.0	0.7	June 2016
Daewoo Shipbuilding(042660)	0.0	-	-	June 2016
SSANGYONG MTR(003620)	1.7	85.6	1.4	June 2016
SAMSUNG HVY IND(010140)	-5.5	-	0.5	June 2016

■ Investor Group

Institutions and Individuals buy, Foreigners sell
As of yesterday, institutions have been selling for the past 7 trading days and foreigners have been selling for the past 2 trading days. As a shareholding sum by investor group for the past 4 weeks, Institutions have bought 195,793 shares in spite of lowered the position recently and Individuals have bought 76,519 shares changing stance to buying from selling. However, during the same period, foreigners have sold 272,312 shares .

Cumulated shareholdings per investor group (1Mo)		Total shareholdings per investor group

* Other Investor groups, included as "other corporations", are considered as "Individuals".

By HeRo (hero@heraldcorp.com)

This article is produced by the algorithm developed by the artificial intelligence developer ThinkPool in collaboration with Herald Corp.

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