[Featured Stock] SeAH Besteel Rebounds After 6 Days... Up 4%

[Asia Economy Reporter Song Hwajeong] SeAH Besteel is rebounding after 6 days, rising more than 4%.

As of 9:53 AM on the 21st, SeAH Besteel was trading at 15,600 KRW, up 650 KRW (4.35%) from the previous day. SeAH Besteel had fallen for 5 consecutive days until the previous day. In particular, the stock price dropped nearly 14% the day before as news of a spin-off to transition into a holding company was announced.

The rebound is interpreted as being driven by expectations that the value of subsidiaries will be highlighted after the spin-off. Park Kwangrae, a researcher at Shinhan Financial Investment, said, "So far, the performance of SeAH Changwon Special Steel has not received attention due to the slowdown in growth of the parent company SeAH Besteel, but after the spin-off, the valuation of SeAH Changwon Special Steel will be reassessed," adding, "As of the 20th, SeAH Besteel's market capitalization of 536.1 billion KRW does not reflect the value of subsidiaries including SeAH Changwon Special Steel." Park Hyunwook, a researcher at Hyundai Motor Securities, also said, "The background of this holding company establishment is presumed to be to realize the value of subsidiaries, which has not been properly reflected in the stock price despite good performance," and added, "Once the holding company is established, the appropriate value of subsidiaries will be reflected in the mid to long term."