[STOCK WATCH] Samsung Engineering drops 6%

PUBLISHED : October 31, 2016 - 14:38

UPDATED : October 31, 2016 - 15:25

- The Return On Risk, -4.2, is in the lower class, it is higher than the industrial mean

- Most of related stocks also decline. Services industry -1.2%

- Target price KRW 10,300, has 7% disparate to increase compared with stock price.

- Individuals and Foreigners buy, Institutions sell

- Turnover Rate and Price Range both proper

- The main shareholding group is Individuals

■ Market Review

As of Oct. 31 11:40 A.M., Samsung Engineering (028050) declined 6.08% to 9,580 won (US$ 8.35). It had declined 11.43% through the past month. Standard deviation, the volatility index for stock price, was 2.7% over the same period of time over one month.

Compared with its close competitors within the same industry, KOSPI, as the monthly volatility of Samsung Engineering relatively expanded, the stock price decline to the lowest among the its peer group. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -4.2%. As increasing of volatility and decline of stock price, the return-on-risk was poor. However, the return-on-risk is much better than the industrial mean, -4.8, and thus the industrial comparison performance was positive.

Comparing industry to the market, the KOSPI industry including Samsung Engineering records higher volatility but lower earning rate than Services. Even though the earning rate of the industry is negative, the industry was more satisfactory than the market.

Close Competitors	Earning rate (%)			STD (1Mo)	Return on Risk (1Mo)
Close Competitors	1 Mo	3 Mo	6 Mo	STD (1Mo)	Return on Risk (1Mo)
SAMSUNG ENG(028050)	-11.4%	-13.0%	-20.9%	2.7%	-4.2
DOOSAN(000150)	-1.9%	-11.0%	-2.4%	2.2%	-0.8
HANKOOK TIRE WORLDWIDE(000240)	-7.5%	8.5%	-3.8%	1.9%	-3.9
LS(006260)	-7.7%	1.1%	12.1%	1.8%	-4.2
Cheil Worldwide(030000)	5.3%	-6.1%	1.5%	1.6%	3.2

Services	-7.3%	-4.0%	-3.1%	0.8%	-9.1
KOSPI	-2.9%	-1.4%	-0.8%	0.6%	-4.8

Target price 10,300 won, has 7% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of Samsung Engineering is 10,300 won. The stock price is 9,580 won so there is 720 won (7%) disparate in order to be able to increase.

■ Earnings & Valuation

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry,Samsung Engineering's P/B ratio, a financial ratio of a company's book value, and its P/E ratio, a price-paid ratio of annual net income, are both at a relatively higher level.

P/E ratio and P/B ratio

Close Compatitors	ROE	PER	PBR	Basic Date
SAMSUNG ENG(028050)	-127.4	-	2.0	June 2016
LS(006260)	1.9	31.6	0.6	June 2016
Cheil Worldwide(030000)	9.2	27.4	2.5	June 2016
DOOSAN(000150)	-15.0	-	0.3	June 2016
HANKOOK TIRE WORLDWIDE(000240)	8.3	9.1	0.8	June 2016

■ Investor Group

Individuals and Foreigners buy, Institutions sell
From Oct. 21, institutions have been continuously selling Samsung Engineering during the past 6 trading days. As a shareholding sum by investor group for the past 4 weeks, foreigners have bought 522,413 shares and individuals have bought 331,027 shares changing stance to buying from selling. However, during the same period, institutions have sold 853,440 shares with a selling trend.

Turnover Rate and Price Range both proper
Regarding the statistics for the past month on trade volume as the total outstanding shares, the daily turnover rate of Samsung Engineering was 0.64%. And the daily volatility, the average range of rise and fall, during the same period is 4.9%.

The main shareholding group is Individuals
As per the inquiry for shareholding by investor group, the major investor group is individuals with 77.68% from total outstanding shares. Foreigners and institutions each hold 12.27% and 10.04%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 75.47%. Institutions hold 12.26% and foreigners hold 12.25%.