[STOCK WATCH] Chokwang Paint up 3%

Oct. 27, 2016 - 14:11 By thinkpool

- The Return On Risk, -2.0, it is higher than the industrial median

- All related stocks also increase. Chemicals industry +0.58%

- Target price KRW 20,000, has 70% disparate to increase compared with stock price.

- Individuals and Foreigners buy, Institutions sell

- Price Range is too low

- The main shareholding group is Individuals

■ Market Review

On Oct. 27 01:10 P.M., Chokwang Paint (004910) increased 3.07% to 11,750 won (US$10.33). It had declined 3.69% through the past month. Standard deviation, which indicates variableness, records 1.8% over the same period of time over one month.

Compared with its close competitors within the same industry, KOSPI, as the monthly volatility of Chokwang Paint had relatively expanded, the investment return for 1 month was negative. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -2.0%. Though the volatility was high, low decreasing rate of stock price lead that the return-on-risk remained around the average of its peer group. In spite of that, the return-on-risk is much better than the industrial mean, -3.3, and thus the industrial comparison performance was positive.

Comparing industry to the market, the KOSPI industry including Chokwang Paint records higher volatility but lower earning rate than Chemicals. 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)
DRB Industrial(163560)	-11.9%	-10.3%	12.0%	2.6%	-4.5
CHOKWANG PAINT(004910)	-3.7%	6.3%	-18.1%	1.8%	-2.0
MICHANG OIL(003650)	-0.1%	-1.5%	0.8%	1.6%	0.1
DAEHAN SYNTH FIBR(003830)	1.4%	-0.9%	-3.6%	1.3%	1.0
TAEKYUNG IND(015890)	-2.0%	-2.6%	-6.2%	0.5%	-4.0

Chemicals	-3.5%	-2.8%	-4.1%	0.9%	-3.8
KOSPI	-2.0%	-1.1%	0.4%	0.6%	-3.3

Target price 20,000 won, has 70% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of Chokwang Paint is 20,000 won. The stock price is 11,750 won as of yesterday, so there is 8,250 (70%) won disparate in order to be able to increase.

■ Earnings & Valuation

CHOKWANG PAINT(004910): 2Q(Apr ~ June) of 2016 Earnings (reported at Aug. 17. 2016)

	Revenue	Operating Income	Net Income
2Q of 2016	492.5 T	61.1 T	77.1 T
Previous Quarter	16.0% increase	91.7% increase	16.5% increase
YoY	2.2% decline	0.1% increase	16.7% increase

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while CHOKWANG PAINT's P/E ratio, a price-paid ratio of annual net income, is relatively higher value, its P/B ratio, a financial ratio of a company's book value, records a proper value.

P/E ratio and P/B ratio

Close Compatitors	ROE	PER	PBR	Basic Date
CHOKWANG PAINT(004910)	12.4	6.6	0.8	June 2016
TAEKYUNG IND(015890)	-4.1	-	0.5	June 2016
DRB Industrial(163560)	19.4	4.9	0.9	June 2016
DAEHAN SYNTH FIBR(003830)	-1.4	-	0.3	June 2016
MICHANG OIL(003650)	14.9	4.3	0.6	June 2016

■ Investor Group

Individuals and Foreigners buy, Institutions sell
From Oct. 20, foreigners have been continously selling Chokwang Paint during the past 5 trading days. As a shareholding sum by investor group for the past 4 weeks, foreigners have bought 38,085 shares with a maintenance of shareholding and individuals have bought 4,526 shares changing stance to buying from selling. However, during the same period, Institutions have sold 42,611 shares with a selling trend.

Price Range is too low
Regarding the statistics for the past month on trade volume as the total outstanding shares, the daily turnover rate of Chokwang Paint was 0.44%. The daily volatility during the same period is 0%, so the fluctuation of price range has been low.

The main shareholding group is Individuals
As per the inquiry for shareholding by investor group, the major investor group is individuals with 76.89% from total outstanding shares. Institutions and foreigners each hold 12.44% and 10.65%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 77.18%. Institutions hold 12.49% and foreigners hold 10.32%.

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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