[STOCK WATCH] Isu Chemical drops 3%

Oct. 28, 2016 - 13:47 By thinkpool

- The Return On Risk, -3.0, is in the lower class, it is lower than the industrial index

- Most of related stocks also decline. Chemicals industry -0.62%

- Target price KRW 26,600, has 62% disparate to increase compared with stock price.

- Institutions and Foreigners sell, Individuals buy

- Turnover Rate and Price Range both proper

- Participation of Foreigners is active, 16.62%

■ Market Review

As of Oct. 28 11:55 A.M., Isu Chemical (005950) declined 2.96% to 16,400 won (US$ 14.32). It had declined 7.87% through the past month. Standard deviation, which indicates risk, records 2.6% over the same period over one month.

Compared with its close competitors within the same industry, KOSPI, as the monthly volatility of Isu Chemical remained at the highest level, 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 -3.0%. As increasing of volatility and decline of stock price, the return-on-risk was poor. Moreover, compared with the KOSPI industry, the return-on-risk is below the industrial mean, -2.5, and thus it is hard to say that the industrial comparison performance was positive.

Comparing industry to the market, the KOSPI industry including Isu Chemical 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)
ISU CHEM(005950)	-7.9%	-9.9%	-3.0%	2.6%	-3.0
KOLON PLASTICS(138490)	-8.5%	-18.2%	-20.2%	1.9%	-4.4
SAMHWA PAINT(000390)	-0.9%	-0.4%	-13.4%	1.5%	-0.5
HUVIS(079980)	-3.6%	-10.5%	-16.8%	1.5%	-2.3
KANGNAM JEVIS(000860)	-2.1%	-0.8%	-11.5%	1.2%	-1.7

Chemicals	-3.5%	-2.2%	-5.0%	0.9%	-3.8
KOSPI	-1.5%	-1.0%	-0.3%	0.6%	-2.5

Target price KRW 26,600, has 62% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of Isu Chemical is 26,600 won. The stock price is 16,400 won so there is 10,200 won (62%) disparate in order to be able to increase.

■ Earnings & Valuation

ISU CHEM(005950): 2Q(Apr ~ June) of 2016 Earnings (reported at Aug. 09. 2016)

	Revenue	Operating Income	Net Income
2Q of 2016	2,467.3 T	127.4 T	158.5 T
Previous Quarter	25.4% decline	9.6% increase	130.0% increase
YoY	39.5% decline	389.9% increase	turn to profit

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while Isu Chemical'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
ISU CHEM(005950)	1.7	41.6	0.7	June 2016
HUVIS(079980)	4.1	15.7	0.6	June 2016
KOLON PLASTICS(138490)	8.3	17.2	1.4	June 2016
SAMHWA PAINT(000390)	8.2	11.2	0.9	June 2016
KANGNAM JEVIS(000860)	8.8	5.9	0.5	June 2016

■ Investor Group

Institutions and Foreigners sell, Individuals buy
From Oct. 20, foreigners have been continuously selling Isu Chemical during the past 6 trading dayss. As a shareholding sum by investor group for the past 4 weeks, foreigners have sold 100,906 shares with maintenance of a selling position and institutions have sold 8,756 shares with a changing stance to selling from buying. However, during the same period, individuals have bought 109,662 shares with an increasing 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 Isu Chemical was 0.47%. And the daily volatility, the average range of rise and fall, during the same period is 2.66%.

Participation of Foreigners is active, 16.62%
As per the inquiry for shareholding by investor group, the major investor group is individuals with 70.72% from total outstanding shares. Foreigners and institutions each hold 16.62% and 12.65%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 74.08%. Foreigners hold 18.18% and institutions hold 7.72%.

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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