Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

Woori Financial Group  / Equity Bottom-Up

<ul>
<li>In our latest South Korean banks screener; we add Woori Financial to existing buy KB Financial as our preferred Korean banks picks</li>
<li>Delinquency ratios continued to worsen QoQ, with only Woori bucking the 4Q23 NPL trend; Woori has lagged in terms of returns, but we expect CoR control to support 2024 returns</li>
<li>KB has a low PBV ratio relative to its ROE, it delivers rising post-provision returns,  it has a high CET1 ratio and it maintains a healthy LDR</li>
</ul>


In our latest South Korean banks screener; we add Woori Financial to existing buy KB Financial as our preferred Korean banks picks
Delinquency ratios continued to worsen QoQ, with only Woori bucking the 4Q23 NPL trend; Woori has lagged in terms of returns, but we expect CoR control to support 2024 returns
KB has a low PBV ratio relative to its ROE, it delivers rising post-provision returns,  it has a high CET1 ratio and it maintains a healthy LDR


South Korean Banks; Woori Financial (316140 KS) Added to Buy List, Joining KB Financial (105560 KS)

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Quantitative Analysis

<ul>
<li>In this insight, we discuss using Smartkarma's new feature called Smart Score Screener to screen alpha generating stocks in Korea.</li>
<li>There are five major components of the Smart Score Screener including 1) Value, 2) Dividends, 3) Growth, 4) Resilience, and 5) Momentum.</li>
<li>In addition to these five major components, the Smart Score Screener also includes Country, Sector, and Market Cap breakdowns. There is also a Score section which provides cumulative scores. </li>
</ul>


In this insight, we discuss using Smartkarma's new feature called Smart Score Screener to screen alpha generating stocks in Korea.
There are five major components of the Smart Score Screener including 1) Value, 2) Dividends, 3) Growth, 4) Resilience, and 5) Momentum.
In addition to these five major components, the Smart Score Screener also includes Country, Sector, and Market Cap breakdowns. There is also a Score section which provides cumulative scores. 


Using Smartkarma's Smart Score Screener to Screen Alpha Generating Stocks in Korea

<ul>
<li>Our weighted metrics of share valuations, returns, capital adequacy and credit quality feed into a scorecard matrix; we look for opportunities where the risks are well discounted in current valuations</li>
<li>
<a href="https://www.smartkarma.com/entities/woori-financial-group-inc" target="_blank" data-smartkarma-citation="entities:27995:1" rel="noopener">Woori Financial Group (316140 KS)</a> remains the stand-out in terms of our matrix; this is based on valuation, dividend yield, and its superior credit quality relative to its peers</li>
<li>Hana Financial is second from top in our scorecard due to its attractive PBV ratio versus RoE, healthy dividend yield and sound credit quality; management should deliver improved medium-term returns</li>
</ul>


Our weighted metrics of share valuations, returns, capital adequacy and credit quality feed into a scorecard matrix; we look for opportunities where the risks are well discounted in current valuations

Woori Financial Group (316140 KS) remains the stand-out in terms of our matrix; this is based on valuation, dividend yield, and its superior credit quality relative to its peers
Hana Financial is second from top in our scorecard due to its attractive PBV ratio versus RoE, healthy dividend yield and sound credit quality; management should deliver improved medium-term returns


Korean Banks; Stick with Hana (086790 KS) And Woori (316140 KS)

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>In just three weeks, on June 3rd, South Korea will hold an early presidential election.</li>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> on Tuesday closed at 347.17,  <strong>entering deeply overbought territory based on our time and price quantitative models</strong>. </li>
<li>Whether the index rallies into the election and then declines, or starts selling off ahead of the vote,<strong> our tactical stance is unchanged: we recommend short exposure or appropriate hedging.</strong>
</li>
</ul>


In just three weeks, on June 3rd, South Korea will hold an early presidential election.
The KOSPI 200 INDEX on Tuesday closed at 347.17,  entering deeply overbought territory based on our time and price quantitative models. 
Whether the index rallies into the election and then declines, or starts selling off ahead of the vote, our tactical stance is unchanged: we recommend short exposure or appropriate hedging.



KOSPI 200 Tactical Outlook: Waiting for the June Elections

Douglas Research Advisory

Kepco Plant Service & Engineering / Equity Bottom-Up

<ul>
<li>In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March. </li>
<li>Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service &amp; Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility. </li>
<li>The biggest near-term negative catalyst on the Korean stock market remains tariffs.  The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of March.</li>
</ul>


In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March. 
Some of the top 10 Korean stock picks in the bi-weekly (starting 17 March) include Kepco Plant Service &amp; Engineering, Hyundai Wia, Poongsan, and Doosan Enerbility. 
The biggest near-term negative catalyst on the Korean stock market remains tariffs.  The final legal outcome on President Yoon Seok-Yeol is expected to be made by the end of March.


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

South Korea

BNK Financial Group Inc. a holding company, provides a full range of consumer and commercial banking-related financial services. The Company's main businesses include banking, trust banking, and assets management to individuals, businesses, and other financial institutions.

Price Gauge
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Bnk Financial Group (138930 KS)

South Korean Banks; Woori Financial (316140 KS) Added to Buy List, Joining KB Financial (105560 KS)

Adding Woori as a buy alongside KB; Woori shows undemanding multiples, a promising NPL trend and potential for improved 2024 returns. KB has a low...

Victor Galliano

Using Smartkarma's Smart Score Screener to Screen Alpha Generating Stocks in Korea

In this insight, we discuss using Smartkarma's new feature called Smart Score Screener to screen alpha generating stocks in Korea.

Douglas Kim

Korean Banks; Stick with Hana (086790 KS) And Woori (316140 KS)

Weighted scorecard metrics drive opportunities in undervalued stocks; Woori Financial with its strong credit quality and high dividend yield, Hana...

Victor Galliano

KOSPI 200 Tactical Outlook: Waiting for the June Elections

The KOSPI 200 INDEX is in overbought territory ahead of SK's early presidential election on June 3rd, this insight discusses tactical...

Nico Rosti

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March.

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

South Korean Banks; Woori Financial (316140 KS) Added to Buy List, Joining KB Financial (105560 KS)

​Adding Woori as a buy alongside KB; Woori shows undemanding multiples, a promising NPL trend and potential for improved 2024 returns. KB has a low...

Victor Galliano

Using Smartkarma's Smart Score Screener to Screen Alpha Generating Stocks in Korea

In this insight, we discuss using Smartkarma's new feature called Smart Score Screener to screen alpha generating stocks in Korea.

Douglas Kim

Korean Banks; Stick with Hana (086790 KS) And Woori (316140 KS)

​Weighted scorecard metrics drive opportunities in undervalued stocks; Woori Financial with its strong credit quality and high dividend yield, Hana...

Victor Galliano

KOSPI 200 Tactical Outlook: Waiting for the June Elections

The KOSPI 200 INDEX is in overbought territory ahead of SK's early presidential election on June 3rd, this insight discusses tactical...

Nico Rosti

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (17 March 2025)

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 17 March.

Douglas Kim

Adding Woori as a buy alongside KB; Woori shows undemanding multiples, a promising NPL trend and potential for improved 2024 returns. KB has a low...

Weighted scorecard metrics drive opportunities in undervalued stocks; Woori Financial with its strong credit quality and high dividend yield, Hana...