LG Household & Health Care, Samsung C&T, Hyundai Motor, and NCSoft Neck and Neck
All Rankings Change in One Day
Interest in Whether NCSoft Will Enter
[Asia Economy Reporter Song Hwajeong] Recently, competition to enter the top 10 in KOSPI market capitalization has intensified. With four stocks clustered around the 21 trillion won mark, the market capitalization rankings are expected to continue changing depending on stock price fluctuations for the time being.
As of 9:20 a.m. on the 3rd, the KOSPI market capitalization rankings from 9th to 12th were Samsung C&T, LG Household & Health Care, Hyundai Motor, and NCSoft, respectively. Based on the previous day's closing prices, the order was LG Household & Health Care, Samsung C&T, NCSoft, and Hyundai Motor. The rankings changed completely within a day.
NCSoft, which had risen to 11th place the previous day and was on the verge of entering the top 10, fell more than 1% on this day and dropped back to 12th place. With NCSoft's rise, SK, which had been competing with the other three stocks for the 10th place, appears to have fallen behind in the competition. Samsung C&T, which had held the 9th position, lost its spot to LG Household & Health Care the previous day and is now fluctuating back and forth.
These stocks are clustered around a market capitalization of 21 trillion won, causing the rankings to continuously shift with stock price changes. Based on the previous day's closing prices, LG Household & Health Care's market capitalization was 21.5375 trillion won, Samsung C&T 21.492 trillion won, NCSoft 21.1637 trillion won, and Hyundai Motor 21.1532 trillion won. Looking at stock price movements over the past month, NCSoft showed the most remarkable trend with a 19.01% increase. Samsung C&T followed with an 11.65% rise, and LG Household & Health Care increased by 0.66%. In contrast, Hyundai Motor fell by 3.41% over the month.
In the future, variables such as second-quarter earnings and equity value are expected to influence the stock prices of these companies. According to financial information provider FnGuide, Samsung C&T's second-quarter earnings consensus is sales of 7.4067 trillion won and operating profit of 235.8 billion won. Sales are expected to decrease by 7.09% compared to the same period last year, but operating profit is expected to increase by 6.84%. In particular, Samsung C&T, whose stock price rose thanks to the equity value of affiliates such as Samsung Biologics, is expected to undergo a stock price revaluation based on equity value. Jeong Daero, a researcher at Mirae Asset Daewoo, said, "Among Samsung C&T's total corporate value, its own businesses such as construction account for 10.1%, and the equity value of its affiliates accounts for 89.9%. Currently, the equity value of affiliates held by Samsung C&T is at a historic high, but the market capitalization is clearly undervalued, so a stock price revaluation reflecting the equity value will take place."
LG Household & Health Care is estimated to have an operating profit decrease of 3.75% to 290.2 billion won and sales increase of 1.2% to 1.8545 trillion won. Due to the impact of the novel coronavirus (COVID-19), expectations for performance have diminished, so the biggest variable for LG Household & Health Care's stock price will be the recovery of Chinese consumption. Hyundai Motor's second-quarter sales and operating profit consensus are 21.9379 trillion won and 342.4 billion won, respectively, expected to decrease by 18.65% and 72.34% compared to the same period last year.
NCSoft is expected to continue solid performance in the second quarter. Sales are estimated at 645.3 billion won and operating profit at 254.1 billion won, increasing by 57.08% and 96.37%, respectively. Lee Jinman, a researcher at SK Securities, said about NCSoft, "Thanks to abundant momentum such as major updates for Lineage M and 2M, new mobile game releases, and overseas expansion of Lineage 2M, quarterly profit growth is expected to continue throughout the year," adding, "Considering its high profitability, unique IP power within the genre, and abundant overseas expansion potential, there is additional upside potential." SK Securities raised NCSoft's target stock price from 900,000 won to 1,200,000 won.
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