[0403주요뉴스] Hanwha-Daewoo Shipbuilding & Marine Engineering, EU approved… Only the Korean Fair Trade Commission remains
This is the main news by media at this time on April 3, delivered by Infostock Daily.
[인포스탁데일리=김윤기 기자]
▲ Hanwha-Daewoo Shipbuilding & Marine Engineering, EU approved… Only the Korean Fair Trade Commission remains
It has been confirmed that even the European Union (EU) has decided to ‘unconditionally approve’ the business combination between Hanwha (KS:) and Daewoo Shipbuilding & Marine Engineering (KS:) (Daewoo Shipbuilding). All seven foreign countries, including Japan and China, saw no possibility of limiting competition in their countries even if Hanwha and Daewoo Shipbuilding were merged. The only thing left until the final business combination between Hanwha and Daewoo Shipbuilding is over is Korea’s Fair Trade Commission. According to industry sources, the EU’s competition authority, the European Commission, approved the business combination between Hanwha and Daewoo Shipbuilding on the 31st of last month. Initially, the EU Commission was known to announce the results of the review on the 18th of this month, but approved the combination earlier than scheduled. Considering that business combination review can take more than several years, the decision to approve it in just three weeks is exceptionally fast.
▲ China’s counterattack… “U.S. Micron Product Survey”
China has begun to regulate Micron Technology, the largest memory semiconductor company in the United States. It is interpreted as a response to the measures of the United States, which implemented last year’s semiconductor export controls. On the 31st of last month, the Internet Security Appeal Office under the China National Internet Information Office (CAC) announced that it would conduct an Internet security review for Micron products sold in China. The government office explained the reason for the review as “to protect national security by ensuring the safety of the supply chain of critical information infrastructure and preventing potential problems in products from causing Internet security risks.”
▲ New monthly sales record for 5 months in the US…Hyundai Motor’s ‘Leading Alone’
These days, ‘automobiles’ and ‘secondary batteries’ are the most active places in the Korean industry. Analyzing Korea’s export performance in March this year, out of the 15 major export items, the export amount of all 13 items except for these two industries decreased compared to the same month last year. Last month’s car exports increased by 64.2% compared to the same month last year, reaching $6.52 billion, exceeding $6 billion for the first time in Korea’s monthly export history. The highest monthly record set in February ($5.6 billion) of this year was rewritten in one month. Favorable factors were the easing of semiconductor supply shortages, the increase in exports of high-priced eco-friendly vehicles such as electric vehicles, and the expansion of global sales following the launch of new models.
▲ DB Hitech enforced ‘physical division’… Activist funds targeted
DB HiTek, which is physically splitting the fabless division, has been targeted by activist funds. It was from the fact that the physical division was promoted despite extreme opposition from minority shareholders. As signs of a dispute over management rights of DB HiTek, whose largest shareholder’s stake is only around 17%, are expected to increase stock price volatility for the time being. According to the Korea Exchange, last week (March 27-31), the index closed at 2476.86, up 61.9 points (2.56%) from the previous week (2414.96). During the week, in the stock market, foreigners net bought 891.8 billion won, institutional institutions net bought 248.4 billion won, and individuals net sold 1.3188 trillion won. According to NH Investment & Securities, this week (April 3-7), the KOSPI index is expected to move between 2380 and 2530.
▲ “Return to normal after 5 months? They all want to die”… Sparks splatter KT partner
KT’s partners are clamoring that they are on the verge of giving up while continuing the ‘management vacuum’ situation by repeating three times of selecting a candidate for the next CEO since December of last year and then canceling it three times. This is because investment decisions and new volume orders have virtually stopped. In a state where the board of directors collapsed without finally being able to appoint the next CEO, Katie started an emergency management system and expected the deadline for normalization of the company to be ‘more than 5 months’, which made her even more discouraged.
▲ 5 major financial holding companies, M&A after internal reorganization… Acquisition of securities and insurance companies started
Financial holding companies are turning their eyes to the mergers and acquisitions (M&A) market in earnest after completing internal reorganizations, including the appointment of a new chairman and presidents of each affiliate, and organizational reshuffle. This is because the need to strengthen business portfolios in the non-banking sector, such as securities, insurance, and credit cards, has increased as the government and financial authorities are pressuring banks to refrain from generating excessive profits through loan-to-deposit margins (the difference in interest rates between deposits and loans). The M&A market is also plentiful. Lotte Card’s sale process has already begun last year, and Lotte Non-Life Insurance, which is owned by a private equity fund (PEF), is scheduled to be put up for sale soon. Insurance companies such as MG Insurance, KDB Life Insurance, and ABL Life Insurance are also waiting for new owners. Although not officially listed on the market, some securities companies are also being courted by financial holding companies that are desperate to strengthen their non-banking businesses behind the scenes.
▲ Celltrion’s (KS:) 3 brothers ‘slow down’ despite the return of Chairman Seo Jeong-jin… future prospects
Celltrion (KS:) Group’s founder Jeong-jin Seo returned to the forefront of management after two years, raising expectations for the three Celltrion brothers (Celltrion, Celltrion Healthcare, and Celltrion Pharmaceuticals), but the recent share price trend has been sluggish. As Chairman Suh returned, expectations for the merger of the three companies increased, but soon turned into disappointment when no specific plan was forthcoming, and the sale went on sale. However, the stock market paid attention to the ‘Seo Jeong-jin Magic’ and predicted that the stock price trend of the Celltrion Group would be positive in the future. Celltrion Pharmaceuticals fell 10.57% over the past week. Celltrion Healthcare (KQ:) and Celltrion (068270) fell 4.9% and 2.47%, respectively.
▲ Chinese Alibaba (HK:) followed by Jingdong business division… The maknae of China’s big tech hit
China’s leading big tech, Jingdong.com, is reorganizing its business. According to Bloomberg News on the 1st (local time), Jingdong.com plans to separate its real estate and industrial businesses and list on the Hong Kong stock exchange. The specific amount of funding was not disclosed, but major foreign media predicted that these companies would each raise $1 billion (approximately 1.2938 trillion won) through an initial public offering (IPO). Jingdong.com’s plan to split the business is attracting more attention as it came two days after Alibaba announced that it would embark on the biggest reorganization since its inception. Analysts say that China’s major big techs, from Alibaba to Jingdong.com, can seek corporate structural changes because the Chinese government’s big tech regulations have come to an end.
▲ Ford and Tesla… China CATL and U.S. battery plant construction promotion
US electric vehicle maker Tesla (NASDAQ:) is promoting the construction of a battery plant in Texas in partnership with China’s Ningdusdai (CATL), the world’s No. According to reports, Tesla recently held talks with the White House over this plan. Tesla recently laid out an expansion plan to inject $22 billion to increase production and lower costs as competition in the industry intensifies. Central to this is a collaboration with CATL, which produces low-cost lithium iron phosphate (LFP) batteries, Bloomberg explained. The plan to build a joint plant between Tesla and CATL is similar to Ford’s plan to build a battery plant in Michigan with CATL.
▲ Chang Se-joo, chairman of Dongkuk Steel, returns as a registered director… Shall we go to the management front?
Se-joo Chang, chairman of Dongkuk Steel, is expected to become a registered director at an extraordinary shareholders’ meeting in May. It has been 8 years since I resigned from the CEO position in June 2015. With his younger brother Sae-wook Jang leading the company as a whole, attention is focusing on whether Chairman Jang will return to the forefront of management after appointing an in-house director. Dongkuk Steel will hold an extraordinary general meeting of shareholders at 9:00 am on the 17th at Ferrum Hall on the 3rd floor of Ferrum Tower, Eulji-ro, Jung-gu, Seoul, and will vote on agenda items such as the appointment of Chairman Jang Se-joo as an inside director. The appointment of Chairman Chang as an inside director is a matter of ordinary resolution, and it is passed when a majority of shareholders in attendance and at least one-fourth of the total number of issued shares are met. As Chairman Jang’s friendly stake reaches 36%, the possibility of rejection is not high.
▲ OPEC’s surprise production cut… “Oil prices rise again to $100-120.”
Markets are at risk of disruption when the Organization of the Petroleum Exporting Countries (OPEC) suddenly decides to cut crude oil production. Oil-consuming countries have little room for a concerted response, and energy industry executives said on the 2nd (local time) that oil prices could jump at least $10 a barrel immediately, Archyde.com reported on the 2nd (local time). Originally, OPEC was expected to stick to the 2 million barrels per day cut it had agreed to by the end of the year. However, Saudi Arabia and Russia, which lead the traditional oil cartel OPEC, have changed their stance to cut production by an additional 1.1 million barrels from May.
▲ Let the loan be released… 2030 Back to the apartment market
Recently, the number of apartment purchases by people in their 20s and 30s is increasing rapidly. It is analyzed that households in their 20s and 30s began to purchase mainly items for quick sale as the new special housing loan and the easing of loan standards for the actual needy class such as first-time home buyers. Given that the 20s and 30s are new demand entering the real estate market, it is also interpreted that the increase in purchases by the younger generation is a sign that the real estate market will bottom out and rebound. According to the housing transaction status of buyers by age group of the Korea Real Estate Agency, the proportion of apartment purchases in the nation under 20s and 30s in February exceeded 30% at 31.96%.
▲ Criticism of ‘money feast’ grows… Entered 3% per annum in the 4 major banks
The lower end of the commercial bank mixed-type (5-year fixed-type) home mortgage interest rate has fallen to the 3% range in about a year. After the financial authorities criticized the banks’ interest business, banks lowered their lending rates one after another, and the market interest rate also fell. According to the financial sector on the 2nd, as of March 31st of the 4 major banks (KB Kookmin, Shinhan, Woori, Hana), the interest rate of the mixed-type main deposit was calculated at 3.660-5.856% per year. Compared to the 3rd of the same month (4.410 to 6.522% per year), the bottom fell by 0.750 percentage points and the top by 0.666 percentage points. It is the first time in more than a year since February last year that the commercial bank’s hybrid mortgage interest rate has fallen to the 3% range.
▲ Samsung and SK Semiconductor’s first quarter deficit forecast of 4 trillion won each… 2nd quarter ‘bottom’ expectations
The performance of semiconductor companies in the first quarter of this year is expected to be the ‘worst ever’ due to piling up inventory and falling product prices. Stock markets estimate that Samsung Electronics and SK Hynix will each lose up to 4 trillion won. The possibility that the deficit will be larger in the second quarter than in the first quarter cannot be ruled out. Considering the possibility of an earnings shock in the first quarter and further declines in semiconductor prices, analysis is continuing that the possibility of a deficit beyond that is open. Samsung Electronics’ sales and operating profit for the first quarter of this year were estimated at 64,384.1 billion won and 1,178.1 billion won, respectively. This is a decrease of more than 80% from the 5,925.4 billion won forecast for operating profit compiled in early January, just three months ago.
▲ Selvas Health ‘runaway’ when Ecopro’s share price ‘runs’
Selvas Healthcare, a listed company, rose to No. 1 in domestic stock price growth in the first quarter of this year. This is the result of Selvas AI (108860), which got on the Chat GPT theme stock train, and attracted its subsidiary Selvas Healthcare to related themes. Attention is focused on the fact that the rise was steeper than that of the secondary battery company Ecopro Group, which has seen an exceptionally large rise in stock prices since the beginning of this year. According to the Korea Exchange on the 3rd, from the beginning of this year to the end of the first quarter, the share price of Selvas Healthcare soared by 411.48%. After forming a closing price of 2,090 won on December 29, the last day of the stock market opening last year, and closing at 10,690 won on the 31st of last month, the stock price rose by 8,600 won in three months.
Reporter Kim Yoon-gi [email protected]