Daily Brief South Korea: Hyundai Motor, SemiFive, Hanwha Energy, Wonik PNE and more

• Names outside the new tax regime may hike year-end payouts, with gov’t push boosting odds despite fuzzy timing, drawing local desk interest.
• With timing murky, local desks are targeting high-yield names, 25–40% FY25 payout, and ~10%+ DPS growth as prime candidates for year-end dividend hikes ahead of AGMs.
• Nine first-tier names (25–40% payout, <10% DPS growth, 3%+ yield) are prime dividend plays; five second-tier names (20–25% payout) need monitoring for potential Q4 expense tweaks.

• SemiFive confirmed its IPO price at 24,000 won, which was at the high end of the IPO price range. 
• A 43.9% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. This is also a bullish sign. 
• Our base case valuation of SemiFive is implied market cap of 1.4 trillion won or target price of 42,349 won per share, which is 76% higher than the IPO price.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Hanwha TotalEnergies, Vedanta Resources.
• Hanwha TotalEnergies Petrochemical (HTP) is a vertically integrated petrochemicals producer in South Korea.
• The company produces a range of commodity chemicals, including base chemicals (olefins and aromatics), polymers (e.g. polyethylene and polypropylene) and energy products (jet fuel and diesel).

• Wonik PNE is a key South Korean manufacturer of battery formation and testing equipment, integral to the secondary battery production process for electric vehicles (EVs) and energy storage systems (ESS).
• The company exhibits a high-growth, high-risk profile, characterized by explosive revenue growth driven by the expanding battery market, but marred by significant volatility in profitability and negative cash flow.
• Strategic acquisitions and a focus on providing turn-key solutions for major global battery manufacturers like Samsung SDI, LG Energy Solution, and SK ON position it to capitalize on long-term EV and ESS demand, though investor caution is warranted due to cyclicality and execution risks.

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