Korea Zinc (010130) Earnings: FY Operating Profit Rises 12% But Misses Estimates

Korea Zinc on Smartkarma

Analysts on Smartkarma, such as Douglas Kim and Sanghyun Park, have been closely monitoring the situation with Korea Zinc. Douglas Kim highlighted a potential loophole in the cross-shareholding system that Korea Zinc‘s Chairman Choi is aiming to exploit to retain control. Additionally, a legal decision to disallow directors’ appointment using cumulative voting may favor the MBK/Young Poong alliance. This legal development has shifted market sentiment towards the alliance’s victory in the proxy battle, reducing the likelihood of further M&A activity and potentially leading to a decline in Korea Zinc‘s share price.

Sanghyun Park‘s analysis revealed that the National Pension Service’s stake in Korea Zinc is crucial, with the EGM vote outcome seemingly locked in, making short position plays attractive. The disclosure of NPS’s reduced stake and passive stance of most minority shareholders may hinder Choi’s chances of garnering sufficient support at the EGM. The showdown between MBK and Choi is intensifying, especially with the absence of cumulative voting, which could impact Choi’s prospects. Analysts suggest that holding short positions on Korea Zinc could be a viable strategy, given the prevailing dynamics before the EGM.

A look at Korea Zinc Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Korea Zinc shows a promising long-term outlook. With solid scores in Resilience and Momentum, the company seems well-positioned to weather challenges and capitalize on growth opportunities in the non-ferrous metal smelting industry. The scores for Dividend and Growth also indicate a stable and steadily developing company. While the Value score is not the highest, it still suggests potential for investment value in the company. Overall, Korea Zinc‘s diversified product range and presence in both domestic and international markets bode well for its future prospects.

Korea Zinc Co., Ltd. is a specialist in non-ferrous metal smelting, with a product portfolio that includes zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper. The company serves customers in both domestic and overseas markets, showcasing its global reach and market presence. With commendable scores in Resilience, Dividend, Growth, and Momentum, Korea Zinc appears to be a robust player in the industry, poised for sustained success and growth in the long run.

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