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

<ul>
<li>Hana Financial remains our buy pick among Korean banks; it is close to the top our scorecard, it remains attractively valued and its returns are improving</li>
<li>Hana is trading at a large PBV discount to KB Financial; this currently stands at a 30%+ discount which is over one standard deviation from the historical PBV discount mean</li>
<li>Furthermore, we see that this relatively dovish phase of monetary policy, Hana appears to have more limited downside risk than its peers in terms of further interest spread erosion</li>
</ul>


Hana Financial remains our buy pick among Korean banks; it is close to the top our scorecard, it remains attractively valued and its returns are improving
Hana is trading at a large PBV discount to KB Financial; this currently stands at a 30%+ discount which is over one standard deviation from the historical PBV discount mean
Furthermore, we see that this relatively dovish phase of monetary policy, Hana appears to have more limited downside risk than its peers in terms of further interest spread erosion


Korean Banks; Stick with Hana (086790 KS) On the Buy List

Derivatives and Quantitative Strategist

Gaudenz Schneider

<ul>
<li>
Context: This Insight is an update on two previously published relative value pairs.</li>
<li>
Highlight: The trades provide a case study illustrating how mean-reversion trades can fail to revert or hit stop-losses within extended timeframes.</li>
<li>
Why Read: Gain insights into timing-related challenges in mean-reversion strategies and time-based exit as a risk management choice.</li>
</ul>



Context: This Insight is an update on two previously published relative value pairs.

Highlight: The trades provide a case study illustrating how mean-reversion trades can fail to revert or hit stop-losses within extended timeframes.

Why Read: Gain insights into timing-related challenges in mean-reversion strategies and time-based exit as a risk management choice.


Case Study: Time-Based Exit in Two Long-Running Pair Trades

<ul>
<li>We stick with Hana Financial as our sole buy in Korean banks; even though it does not top our proprietary scorecard, it remains attractively valued and its returns are improving</li>
<li>We downgrade Woori to a neutral from a buy, with Woori now trading at a PBV premium to Hana; historically, this has been an indicator of future poor share performance</li>
<li>KB Financial ranks top in our scorecard; KB is one watch, but remains a neutral due to limited appeal in terms of valuation</li>
</ul>


We stick with Hana Financial as our sole buy in Korean banks; even though it does not top our proprietary scorecard, it remains attractively valued and its returns are improving
We downgrade Woori to a neutral from a buy, with Woori now trading at a PBV premium to Hana; historically, this has been an indicator of future poor share performance
KB Financial ranks top in our scorecard; KB is one watch, but remains a neutral due to limited appeal in terms of valuation


Korean Banks; Keep Buy on Hana (086790 KS), Take Profits on Woori (316140 KS)

Fisher & Paykel Healthcare Cor / Equity Bottom-Up

<ul>
<li>
Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.</li>
<li>
Highlight: Currently six pair trade opportunities across three markets and three sectors persist.</li>
<li>
Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.</li>
</ul>



Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.

Highlight: Currently six pair trade opportunities across three markets and three sectors persist.

Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.


Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)

<ul>
<li>
Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.</li>
<li>
Highlight: Currently five pair trade opportunities across three markets and three sectors persist.</li>
<li>
Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.</li>
</ul>



Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.

Highlight: Currently five pair trade opportunities across three markets and three sectors persist.

Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs.


Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (28 Jul)

South Korea

Industrial Bank of Korea(IBK) is a policy bank providing development finance and related banking services to support small and medium-sized enterprises in Korea. The Bank provides loans, discount bills, trade finance, deposits, foreign exchange, and payment guarantees. The company also offers services such as credit cards, insurance and smart-phone banking.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Industrial Bank Of Korea (024110 KS)

Korean Banks; Stick with Hana (086790 KS) On the Buy List

Hana Financial is our buy among Korean banks on attractive valuations - big PBV discount to KB Financial - and improving returns. Hana has limited...

Victor Galliano

Case Study: Time-Based Exit in Two Long-Running Pair Trades

Case study illustrating when to exit mean-reversion pair trades that stall without hitting profit targets or stop-losses.

Gaudenz Schneider

Korean Banks; Keep Buy on Hana (086790 KS), Take Profits on Woori (316140 KS)

We stick with Hana as a buy in Korean banks, downgrading Woori to neutral, due to its premium PBV ratio to Hana; scorecard-topping KB Financial is...

Victor Galliano

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)

Statistical methodology identifies six pair trade opportunities across three markets and three sectors, offering unique insights into relative value.

Gaudenz Schneider

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (28 Jul)

Statistical methodology identifies five pair trade opportunities across three markets and sectors, offering unique insights into relative value.

Gaudenz Schneider

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korean Banks; Stick with Hana (086790 KS) On the Buy List

​Hana Financial is our buy among Korean banks on attractive valuations - big PBV discount to KB Financial - and improving returns. Hana has limited...

Victor Galliano

Case Study: Time-Based Exit in Two Long-Running Pair Trades

Case study illustrating when to exit mean-reversion pair trades that stall without hitting profit targets or stop-losses.

Gaudenz Schneider

Korean Banks; Keep Buy on Hana (086790 KS), Take Profits on Woori (316140 KS)

​We stick with Hana as a buy in Korean banks, downgrading Woori to neutral, due to its premium PBV ratio to Hana; scorecard-topping KB Financial is...

Victor Galliano

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (04 Aug)

​Statistical methodology identifies six pair trade opportunities across three markets and three sectors, offering unique insights into relative value.

Gaudenz Schneider

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (28 Jul)

​Statistical methodology identifies five pair trade opportunities across three markets and sectors, offering unique insights into relative value.

Gaudenz Schneider

Hana Financial is our buy among Korean banks on attractive valuations - big PBV discount to KB Financial - and improving returns. Hana has limited...

We stick with Hana as a buy in Korean banks, downgrading Woori to neutral, due to its premium PBV ratio to Hana; scorecard-topping KB Financial is...

Statistical methodology identifies six pair trade opportunities across three markets and three sectors, offering unique insights into relative value.

Statistical methodology identifies five pair trade opportunities across three markets and sectors, offering unique insights into relative value.