[STOCK WATCH] CS Wind up 3%

Oct. 27, 2016 - 14:05 By thinkpool

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

- All related stocks also increase.Machinery industry -0.07%

- Target price KRW 30,000, has 18% disparate to increase compared with stock price.

- Institutions and Individuals buy, Foreigners sell

- Turnover Rate and Price Range both proper

- The main shareholding group is Individuals

■ Market Review

As of Oct. 27 11:55 A.M., CS Wind (112610) increased 2.64% to 25,250 won (US$ 22.17). It had increased 5.87% through the past month. Standard deviation, which indicates risk, records 2.8% over the same period over one month.

Compared with its close competitors within the same industry, KOSPI, the monthly earnings rate of CS Wind was the highest and its volatility within 1 month was considerably higher than that of its peer group. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was 2.0. Though its volatility was the highest among its peer group, an incredible increase of stock price lead to good return-on-risk. Moreover, compared with the KOSPI industry, the return-on-risk is much better than the industrial mean, -3.5, and thus the industrial comparison performance was good.

Comparing industry to the market, the KOSPI industry including CS Wind records higher volatility but lower earning rate than Machinery. 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)
DSINFRA(042670)	-15.3%	-5.1%	-9.5%	3.1%	-4.9
CSWIND(112610)	5.9%	4.1%	36.5%	2.8%	2.0
HANMI Semi(042700)	0.4%	-0.7%	-14.9%	2.3%	0.1
HYUNDAI ELEV(017800)	-6.0%	-2.3%	5.7%	2.2%	-2.7
HANKUK CARBON(017960)	0.0%	-3.6%	-10.1%	1.5%	0.1

Machinery	-9.4%	-6.3%	0.0%	1.4%	-6.7
KOSPI	-2.1%	-1.1%	0.3%	0.6%	-3.5

■ Earnings & Valuation

CSWIND(112610): 2Q(Apr ~ June) of 2016 Earnings (reported at Aug. 01. 2016)

	Revenue	Operating Income	Net Income
2Q of 2016	1,101.1 T	6.6 T	81.3 T
Previous Quarter	47.2% increase	88.9% decline	33.9% decline
YoY	185.7% increase	94.1% decline	27.0% increase

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, CSWIND's P/B ratio, a financial ratio of a company's book value, and its P/E ratio, a price-paid ratio of annual net income, are both at a proper value.

P/E ratio and P/B ratio

Close Compatitors	ROE	PER	PBR	Basic Date
CSWIND(112610)	7.4	17.8	1.3	June 2016
HANKUK CARBON(017960)	9.4	9.1	0.9	June 2016
HYUNDAI ELEV(017800)	0.1	3029.9	2.2	June 2016
HANMI Semi(042700)	15.0	12.4	1.9	June 2016
DSINFRA(042670)	-15.6	-	0.4	June 2016

■ Investor Group

Institutions and Individuals buy, Foreigners sell
From Oct. 25, foreigners have been continuously selling CS Wind during the past 2 trading days. As a shareholding sum by investor group for the past 4 weeks, institutions have bought 4,262 shares as they turn toward a buying stance and individuals have bought 33,923 shares with an increasing position. However, during the same period, foreigners have sold 38,185 shares with maintenance of a selling position.

Turnover Rate and Price Range both proper
Regarding the statistics for the past month on trade volume as the total outstanding shares, the daily turnover rate of CS Wind was 0.31%. And the daily volatility, the average range of rise and fall, during the same period is 4.52%.

The main shareholding group is Individuals
As per the inquiry for shareholding by investor group, the major investor group is individuals with 78.22% from total outstanding shares. Foreigners and institutions each hold 11.88% and 9.88%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 81.01%. Foreigners hold 14.4% and institutions hold 4.57%.

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

thinkpool