Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>There are credible signs that the Dongwon Group is getting ready to bid for a controlling stake in HMM (011200 KS). </li>
<li>If the StarKist sale is completed, Dongwon Industries could gain an additional 2 trillion won in cash.</li>
<li>The increasing commercial feasibility of conducting container shipping through the new North Sea Arctic and Greenland seas could provide new long-term revenues/lower costs for HMM (011200 KS).</li>
</ul>


There are credible signs that the Dongwon Group is getting ready to bid for a controlling stake in HMM (011200 KS). 
If the StarKist sale is completed, Dongwon Industries could gain an additional 2 trillion won in cash.
The increasing commercial feasibility of conducting container shipping through the new North Sea Arctic and Greenland seas could provide new long-term revenues/lower costs for HMM (011200 KS).


Dongwon Group: Getting Ready to Bid for Controlling Stake in HMM + New Arctic/Greenland Sea Routes?

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

<ul><li>For 3Q25, HMM posted revenue of W2.71tr (-23.8% YoY). Container revenue fell 27% YoY, driving overall top-line weakness.</li><li>While volume on US routes was soft (-4% YoY), strong growth on European routes (+63% YoY) led to a 4% YoY increase in total container volume.</li><li>However, this was not enough to offset a 38% YoY drop in freight rates. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For 3Q25, HMM posted revenue of W2.71tr (-23.8% YoY). Container revenue fell 27% YoY, driving overall top-line weakness.While volume on US routes was soft (-4% YoY), strong growth on European routes (+63% YoY) led to a 4% YoY increase in total container volume.However, this was not enough to offset a 38% YoY drop in freight rates. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HMM (011200 KS/Buy)Container Margins Recovering

Cross Asset Strategy

<ul>
<li>We are starting a new series of insights called "Top 10 Korean Stock Picks Bi-Weekly."
</li>
<li>The main purpose of these insights is to pick top 10 stocks in Korea that could outperform KOSPI in the following two week period.</li>
<li>The top 10 stock picks include Kia Corp, Kangwon Land, OCI Holdings, HD Hyundai, Doosan Bobcat, BNK Financial, Hyundai Mobis, HMM, Hyundai Glovis, and Korean Reinsurance.</li>
</ul>


We are starting a new series of insights called "Top 10 Korean Stock Picks Bi-Weekly."

The main purpose of these insights is to pick top 10 stocks in Korea that could outperform KOSPI in the following two week period.
The top 10 stock picks include Kia Corp, Kangwon Land, OCI Holdings, HD Hyundai, Doosan Bobcat, BNK Financial, Hyundai Mobis, HMM, Hyundai Glovis, and Korean Reinsurance.


Top 10 Korean Stock Picks Bi-Weekly (Starting 20 January 2025)

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of MS-South Korea in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on KEPCO, LG Display, SK Hynix, LG Energy Solution, SKSQUARE, POSCO INTERNATIONAL, Samsung Electronics, ECOPROBM.</li>
</ul>


We analysed the earning revision of component stocks of MS-South Korea in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on KEPCO, LG Display, SK Hynix, LG Energy Solution, SKSQUARE, POSCO INTERNATIONAL, Samsung Electronics, ECOPROBM.


MS-South Korea Index Earning Revision (Aug): KEPCO, LG Display, SK Hynix, LG Energy Solution

<ul>
<li>It was reported today in numerous local media that there will be an inclusion of 'shareholder value improvement' management evaluation criteria for listed government enterprises.</li>
<li>Some of these listed government enterprises rallied strongly today (KEPCO - up 10%; KOGAS - up 12.7%; Korea District Heating - Up 30%). </li>
<li>The detailed evaluation criteria for management evaluation of government enterprises will include the appropriateness of dividend levels, protection of minority shareholders, and compliance with best practices for ESG improvement.</li>
</ul>


It was reported today in numerous local media that there will be an inclusion of 'shareholder value improvement' management evaluation criteria for listed government enterprises.
Some of these listed government enterprises rallied strongly today (KEPCO - up 10%; KOGAS - up 12.7%; Korea District Heating - Up 30%). 
The detailed evaluation criteria for management evaluation of government enterprises will include the appropriateness of dividend levels, protection of minority shareholders, and compliance with best practices for ESG improvement.


Inclusion of 'Shareholder Value Improvement' Mgmt Evaluation Reforms for Listed Govt Enterprises

South Korea

HMM Co., Ltd. provides marine transportation services.  The Company commands different types of vessels including full container vessels, oil tankers, car carriers, LNG carriers, bulk carriers, and tramps.

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HMM Co., Ltd. (011200 KS)

Dongwon Group: Getting Ready to Bid for Controlling Stake in HMM + New Arctic/Greenland Sea Routes?

Dongwon Group may bid for controlling stake in HMM, potential cash boost from StarKist sale, and new shipping routes could benefit HMM's long-term...

Douglas Kim

HMM (011200 KS/Buy)Container Margins Recovering

While volume on US routes was soft (-4% YoY), strong growth on European routes (+63% YoY) led to a 4% YoY increase in total container volume.

Mirae Asset Securities

Top 10 Korean Stock Picks Bi-Weekly (Starting 20 January 2025)

We are starting a new series of insights called "Top 10 Korean Stock Picks Bi-Weekly." Main purpose of them is to pick top 10 stocks in Korea that...

Douglas Kim

MS-South Korea Index Earning Revision (Aug): KEPCO, LG Display, SK Hynix, LG Energy Solution

We analyzed MS-South Korea's consensus for Aug 2026 and highlighted changes of EPS in KEPCO, LG Display, SK Hynix, LG Energy Solution, SKSQUARE,...

Ke Yan, CFA, FRM

Inclusion of 'Shareholder Value Improvement' Mgmt Evaluation Reforms for Listed Govt Enterprises

It was reported today in numerous local media that there will be an inclusion of 'shareholder value improvement' management evaluation criteria for...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dongwon Group: Getting Ready to Bid for Controlling Stake in HMM + New Arctic/Greenland Sea Routes?

​Dongwon Group may bid for controlling stake in HMM, potential cash boost from StarKist sale, and new shipping routes could benefit HMM's long-term...

Douglas Kim

HMM (011200 KS/Buy)Container Margins Recovering

While volume on US routes was soft (-4% YoY), strong growth on European routes (+63% YoY) led to a 4% YoY increase in total container volume.

Mirae Asset Securities

Top 10 Korean Stock Picks Bi-Weekly (Starting 20 January 2025)

We are starting a new series of insights called "Top 10 Korean Stock Picks Bi-Weekly." Main purpose of them is to pick top 10 stocks in Korea that...

Douglas Kim

MS-South Korea Index Earning Revision (Aug): KEPCO, LG Display, SK Hynix, LG Energy Solution

We analyzed MS-South Korea's consensus for Aug 2026 and highlighted changes of EPS in KEPCO, LG Display, SK Hynix, LG Energy Solution, SKSQUARE,...

Ke Yan, CFA, FRM

Inclusion of 'Shareholder Value Improvement' Mgmt Evaluation Reforms for Listed Govt Enterprises

It was reported today in numerous local media that there will be an inclusion of 'shareholder value improvement' management evaluation criteria for...

Douglas Kim

Dongwon Group may bid for controlling stake in HMM, potential cash boost from StarKist sale, and new shipping routes could benefit HMM's long-term...