[STOCK WATCH] Seobu T&D falls 3%

PUBLISHED : November 09, 2016 - 13:44

UPDATED : November 09, 2016 - 13:49

- Compared with industrial mean, the Return comparison fluctuation was high

- All related stocks also decline. Distribution industry -5.69%

- Target price KRW 33,000, has 79% disparate to increase compared with stock price.

- Individuals and Foreigners sell, Institutions buy

- Turnover Rate and Price Range both proper

- Participation of Institutions is active, 25.82%

■ Market Review

As of Nov. 9 01:10 P.M., Seobu T&D (006730) declined 3.41% to 18,400 won (US$16.41). It had declined 6.84% through the past month. Standard deviation, which indicates volatility of stock, records 1.6% on the same period over one month.

Compared with its close competitors within the same industry, KOSDAQ, Seobu T&D was not only satisfactory in investment return among its peer group, but its volatility was also the lowest. Over the recent month, the return-on-risk, the return on investment with consideration about risk, was -4.2%. As the volatility was low, the return-on-risk was a proper rate in spite of stock price decline. In spite of that, the return-on-risk is much better than the industrial mean, -11.5, and thus the industrial comparison performance was positive.

Comparing industry to the market, the KOSDAQ industry including Seobu T&D records higher volatility and earning rate than Distribution. Even though the earning rate of the industry is negative, the industry has more momentum 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)
CJ FW(051500)	-2.5%	0.3%	-29.0%	2.1%	-1.1
PRP(214450)	-8.9%	-20.2%	-29.1%	2.1%	-4.2
DAOU DATA(032190)	-15.7%	-26.1%	-21.8%	2.1%	-7.4
Interpark(108790)	-16.5%	-22.1%	-43.5%	1.8%	-9.1
Seobu T&D(006730)	-6.8%	-4.2%	-18.8%	1.6%	-4.2

Distribution	-15.1%	-14.1%	-18.0%	1.0%	-15.1
KOSDAQ	-11.5%	-12.6%	-14.8%	1.1%	-11.5

Target price 33,000 won, has 79% disparate to increase compared with stock price.
Per analysts' expectations during the recent month, the average target price of Seobu T&D is 33,000 won. The stock price is 18,400 won as of yesterday, so there is 14,600 won (79%) disparate in order to be able to increase.

■ Earnings & Valuation

Seobu T&D(006730): 2Q(Apr ~ June) of 2016 Earnings (reported at Aug. 17. 2016)

	Revenue	Operating Income	Net Income
2Q of 2016	133.0 T	34.1 T	6.4 T
Previous Quarter	0.2% decline	12.3% increase	14.2% decline
YoY	0.5% increase	23.7% increase	33.2% decline

■ Investor Group

Individuals and Foreigners sell, Institutions buy
From Nov. 01, foreigners have been continuously selling Seobu T&D during the past 6 trading days. As a shareholding sum by investor group for the past 4 weeks, institutions have bought 178,371 shares with trending trade. However, during the same period, foreigners have sold 90,096 shares with maintenance of a selling position and individuals have sold 88,275 shares with a decreasing 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 Seobu T&D was 0.19%. And the daily volatility, the average range of rise and fall, during the same period is 1.96%.

Participation of Institutions is active, 25.82%
As per the inquiry for shareholding by investor group, the major investor group is individuals with 60.4% from total outstanding shares. Institutions and foreigners each hold 25.82% and 13.76%. And as recent 5-day shareholding change by investor group, individuals is the major investor group with 54.78%. Institutions hold 26.57% and foreigners hold 18.63%.

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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