[STOCK WATCH] Hyundai Wia rises 3%

PUBLISHED : November 08, 2016 - 16:10

UPDATED : November 08, 2016 - 17:11

- The Return On Risk, -5.4, it is lower than the industrial median

- Related stocks mixed, Transport Equipment industry +0.19%

- Target price KRW 113,100, has 45% disparate to increase compared with stock price.

- Institutions and Foreigners sell, Individuals buy

- Turnover Rate and Price Range both proper

- Institution 30.42%, Foreigners 25.42%

■ Market Review

As of Nov. 8 11:25 A.M., Hyundai Wia (011210) increased 2.78% to 77,700 won (US$ 68.45). It had declined 9.23% through the past month. Standard deviation, which indicates variableness, records 1.7% over the same period of time over one month.

Compared with its close competitors within the same industry, KOSPI, even though the monthly earnings rate of Hyundai Wia stayed negative, its volatility for 1 month was at the lowest level. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -5.4%. As the volatility was low, the return-on-risk was a proper rate in spite of stock price decline. However, compared with the KOSPI industry, the return-on-risk is below the industrial mean, -4.1, and thus it is hard to say that the industrial comparison performance was positive.

Comparing industry to the market, the KOSPI industry including Hyundai Wia records higher volatility but lower earning rate than Transport Equipment. 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)
MANDO(204320)	0.0%	0.6%	36.6%	2.9%	0.1
HYUNDAI MIPO DOCK(010620)	-19.7%	-19.0%	-4.7%	2.5%	-7.8
SAMSUNG HVY IND(010140)	-5.0%	14.1%	7.0%	2.4%	-2.0
HYUNDAI ROTEM(064350)	-16.3%	-13.3%	2.9%	2.4%	-6.7
HYUNDAI WIA(011210)	-9.2%	-6.5%	-19.3%	1.7%	-5.4

Transport Equipment	-4.5%	-5.4%	1.3%	1.0%	-4.5
KOSPI	-2.9%	-3.0%	-0.1%	0.7%	-4.1

Target price 113,100 won, has 45% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of Hyundai Wia is 113,100 won. The stock price is 77,700 won, so there is 35,400 won (45%) disparate in order to be able to increase.

■ Earnings & Valuation

HYUNDAI WIA(011210): 3Q(July ~ Sept) of 2016 Earnings (reported at Oct. 27. 2016)

	Revenue	Operating Income	Net Income
3Q of 2016	17,439.5 T	639.5 T	7.4 T
Previous Quarter	10.5% decline	29.6% decline	98.7% decline
YoY	3.9% decline	42.7% decline	99.2% decline

Financial structure Overview

Compared with 4 close competitors with similar market capitalization within its industry, while Hyundai Wia's P/E ratio, a price-paid ratio of annual net income, is relatively lower 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
HYUNDAI WIA(011210)	6.4	9.8	0.6	June 2016
HYUNDAI MIPO DOCK(010620)	6.7	8.8	0.6	June 2016
MANDO(204320)	10.7	15.7	1.7	June 2016
HYUNDAI ROTEM(064350)	-17.0	-	1.0	June 2016
SAMSUNG HVY IND(010140)	-5.5	-	0.4	June 2016

■ Investor Group

Institutions and Foreigners sell, Individuals buy
The joint selling by institutions and foreigners is noticed. Institutions have been selling for the past 8 trading days and foreigners have been selling for the past 6 trading days. As a shareholding sum by investor group for the past 4 weeks, foreigners have sold 57,246 shares and institutions have sold 423,652 shares with a selling trend. However, during the same period, individuals have bought 480,898 shares with an increasing position.

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 Hyundai Wia was 0.39%. And the daily volatility, the average range of rise and fall, during the same period is 1.58%.

Institution 30.42%, Foreigners 25.42%
As per the inquiry for shareholding by investor group, the major investor group is individuals with 44.14% from total outstanding shares. Institutions and foreigners each hold 30.42% and 25.42%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 44.37%. Institutions hold 30.43% and foreigners hold 25.19 %.