[STOCK WATCH] NHN KCP down 4%

PUBLISHED : November 02, 2016 - 15:10

UPDATED : November 02, 2016 - 15:10

- Compared with industrial index, the Return comparison Volatility was positive

- All related stocks also decline. Software industry -2.91%

- Target price KRW 24,000, has 47% disparate to increase compared with stock price.

- Institutions and Foreigners buy, Individuals sell

- Turnover Rate and Price Range both proper

- The main shareholding group is Individuals

■ Market Review

On Nov. 2 02:40 P.M., NHN KCP (060250) declined 4.4% to 16,300 won (US$14.21). It had declined 13.3% through the past month. Standard deviation, the risk index for stock price, was 2.5% over the same period of time over one month.

Compared with its close competitors within the same industry, KOSDAQ, as the monthly volatility of NHN KCP was relatively expand, the stock price was stay at a low level with decline. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -5.3%. As high volatility and a bearish stock price trend, the return-on-risk recorded a low value. However, the return-on-risk is much better than the industrial mean, -12.4, and thus the industrial comparison performance was positive.

Comparing industry to the market, the KOSDAQ industry including NHN KCP records higher volatility but lower earning rate than Software. 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)
AfreecaTV(067160)	-10.3%	-23.5%	-12.9%	2.5%	-4.1
NHN KCP(060250)	-13.3%	-26.4%	-31.5%	2.5%	-5.3
KGINICIS(035600)	-9.2%	-15.1%	-28.6%	2.4%	-3.8
KGMBLS(046440)	-11.1%	-16.0%	-26.8%	1.8%	-6.1
GOLFZONYUWONHOLDINGS(121440)	-6.9%	-11.7%	-7.6%	1.6%	-4.2

Software	-11.2%	-11.0%	-15.8%	1.0%	-11.2
KOSDAQ	-11.1%	-8.8%	-13.7%	0.9%	-12.4

Target price 24,000 won, has 47% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of NHN KCP is 24,000 won. The stock price is 16,300 won as of yesterday, so there is 7,700 won (47%) disparate in order to be able to increase.

■ Earnings & Valuation

NHN KCP(060250): 2Q(Apr ~ June) of 2016 Earnings (reported at Aug. 17. 2016)

	Revenue	Operating Income	Net Income
2Q of 2016	645.8 T	21.8 T	18.4 T
Previous Quarter	8.1% increase	30.4% decline	35.5% decline
YoY	47.7% increase	58.0% increase	8.1% decline

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while NHN KCP's P/E ratio, a price-paid ratio of annual net income, is relatively higher value, its P/B ratio, a financial ratio of a company's book value, records a proper value.

P/E ratio and P/B ratio

Close Compatitors	ROE	PER	PBR	Basic Date
NHN KCP(060250)	9.8	33.3	3.3	June 2016
KGINICIS(035600)	4.6	28.2	1.3	June 2016
AfreecaTV(067160)	14.0	35.6	5.0	June 2016
GOLFZONYUWONHOLDINGS(121440)	-0.7	-	0.6	June 2016
KGMBLS(046440)	6.8	20.2	1.4	June 2016

■ Investor Group

Institutions and Foreigners buy, Individuals sell
From Oct. 31, both institutions and foreigners were buying during the past 2 trading days. As a shareholding sum by investor group for the past 4 weeks, foreigners have bought 38,545 shares with a maintenance of shareholding and institutions have bought 20,938 shares in spite of lowered the position recently. However, during the same period, individuals have sold 59,483 shares in a lessening 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 NHN KCP was 0.68%. And the daily volatility, the average range of rise and fall, during the same period is 3.35%.

The main shareholding group is Individuals
As per the inquiry for shareholding by investor group, the major investor group is Individuals with 80.7% from total outstanding shares. Foreigners and institutions each hold 10% and 9.28%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 78.08%. Foreigners hold 12.79% and institutions hold 9.11%.

Cumulated shareholdings per investor group (1Mo)		Total shareholdings per investor group

* Other Investor groups, included as "other corporations", are considered as "Individuals".

By HeRo (hero@heraldcorp.com)

This article is produced by the algorithm developed by the artificial intelligence developer ThinkPool in collaboration with Herald Corp.

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