[STOCK WATCH] Young Poong down 2%

PUBLISHED : November 01, 2016 - 15:21

UPDATED : November 01, 2016 - 15:58

- On its close competitors, Earning Rate is low in spite of high Volatility

- Most related stocks increase. Iron & Metal Products industry +0.07%

- Individuals and Foreigners buy, Institutions sell

- Turnover Rate low in spite of proper Price Range

- Institution 46.45%, Foreigners 24.47%

■ Market Review

As of Nov. 1 01:40 P.M., Young Poong (000670) declined 2.01% to 975,000 won (US$ 855.34). It had declined 7.49% through the past month. Standard deviation, which indicates risk, records 1.7% on the same period over one month.

Compared with its close competitors within the same industry, KOSPI, the monthly volatility of Young Poong was not so high, the earnings rate for 1 month was also the lowest with decline of stock price. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -4.4%. As high volatility and a bearish stock price trend, the return-on-risk was poor, compared with its peer group. Moreover, compared with the KOSPI industry, the return-on-risk is below the industrial mean, -3.1, and thus the industrial comparison performance was not so good.

Comparing industry to the market, the KOSPI industry including Young Poong records lower volatility and earning rate than Iron & Metal Products. In other words, the industry was safer and the rate of decrease is smaller than that of 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)
HYUNDAI STEEL(004020)	-2.8%	-3.9%	-18.6%	2.1%	-1.3
POONGSAN(103140)	3.3%	11.7%	13.1%	1.7%	1.9
YOUNGPOONG(000670)	-7.5%	-13.9%	-10.4%	1.7%	-4.4
SEAH BESTEEL(001430)	-6.8%	-11.6%	-17.6%	1.7%	-3.9
KOR ZINC(010130)	-5.0%	-11.6%	-7.6%	1.6%	-3.1

Iron & Metal Products	-0.4%	-0.6%	-2.8%	1.4%	-0.2
KOSPI	-1.9%	-1.3%	-0.8%	0.6%	-3.1

■ Earnings & Valuation

YOUNGPOONG(000670): 2Q(Apr ~ June) of 2016 Earnings (reported at Aug. 17. 2016)

	Revenue	Operating Income	Net Income
2Q of 2016	6,178.0 T	75.0 T	341.8 T
Previous Quarter	3.1% increase	turn to profit	26.9% increase
YoY	0.4% decline	665.7% increase	4.5% increase

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while Young Poong's P/E ratio, a price-paid ratio of annual net income, is at the highest level, its P/B ratio, a financial ratio of a company's book value, is a proper value.

P/E ratio and P/B ratio

Close Compatitors	ROE	PER	PBR	Basic Date
YOUNGPOONG(000670)	3.3	18.4	0.6	June 2016
SEAH BESTEEL(001430)	5.9	7.4	0.4	June 2016
KOR ZINC(010130)	9.6	16.6	1.6	June 2016
POONGSAN(103140)	7.5	11.4	0.9	June 2016
HYUNDAI STEEL(004020)	4.5	9.4	0.4	June 2016

■ Investor Group

Individuals and Foreigners buy, Institutions sell
From Oct. 26, foreigners have been continuously selling Young Poong during the past 4 trading days. As a shareholding sum by investor group for the past 4 weeks, foreigners have bought 3,187 shares with a maintenance of shareholding and individuals have bought 1,507 shares with an increasing position. However, during the same period, institutions have sold 4,694 shares with a selling trend.

Turnover Rate low in spite of proper Price Range
Regarding the statistics for the past month on trade volume as the total outstanding shares, the daily turnover rate of Young Poong was 0.05%. If the turnover rate is quite low like this, it may be hard to trade due to its low degree of liquidity. Thus, one must pay attention in order to trade Young Poong. The daily volatility from bottom to top is 2.61% which is at a proper value.

Institution 46.45%, Foreigners 24.47%
As per the inquiry for shareholding by investor group, the major investor group is institutions with 46.45% from total outstanding shares. Individuals and foreigners each hold 29.06% and 24.47%. And as recent 5-day shareholding change by investor group, institutions is the major investor group with 43.69%. Foreigners hold 28.45% and individuals hold 27.85%.