National Pension Service's Chosen Investment Keywords: 'High Dividend, Battery, Reopening'

Betting on Secondary Battery Stocks like Daejoo Jeonja Jaeryo
Becoming a Major Shareholder of High-Dividend Macquarie Infrastructure
Reopening Expectations... Massive Buying of Consumer and Distribution Stocks

[Asia Economy Reporter Lee Seon-ae] The National Pension Service (NPS), a major player in the domestic stock market, has adjusted its portfolio at the beginning of the new year, drawing attention as it became a major shareholder in several companies. The keywords that characterize the companies receiving the NPS's love calls can be summarized as 'high dividend, battery, and reopening.'

According to the Financial Supervisory Service's electronic disclosure system on the 6th, the NPS announced on the 3rd that it secured more than 5% of the shares in Cosmo Chemical, Daewoo Electronic Materials, and Seojin System. The commonality among these companies is that they all operate in the secondary battery (battery) related business. This is the first time the NPS has secured over 5% stakes in these companies, becoming a major shareholder. It is interpreted as a strategic move to bet on the battery market, which is considered a new growth engine.

The NPS secured a 5.06% stake in Daewoo Electronic Materials. Daewoo Electronic Materials is the first domestic company to mass-produce silicon anode materials for secondary batteries, and high growth is expected. Juminwoo, a researcher at NH Investment & Securities, said, "Except for China's BTR and Japan's Shin-Etsu, the mass production capabilities of potential competitors have not yet been verified, so Daewoo Electronic Materials' position is expected to remain very solid at least until 2025," adding, "High growth exceeding industry growth will begin from the fourth quarter of this year, when the increase in silicon addition ratio is fully reflected."

The NPS also secured 5.06% and 5.30% stakes in Cosmo Chemical, which supplies cobalt sulfate used in cathode materials for secondary batteries, and Seojin System, which supplies secondary battery cases, respectively. Additionally, the NPS's shareholding ratios in Cheonbo, SeAH Steel Holdings, and LX Holdings were recorded at 5.00%, 5.03%, and 5.01%, respectively. Cheonbo is recognized for its high technological competitiveness in the secondary battery electrolyte material business, ensuring profitability. LX Holdings, a pure holding company, derives most of its corporate value from its subsidiaries. Its core subsidiaries have chosen and are promoting secondary battery materials as a new growth business. SeAH Group, operated under the dual holding company system of SeAH Holdings and SeAH Steel Holdings, is also actively investing in new secondary battery material businesses.

The NPS appears to be expecting a reopening (resumption of economic activities) as well. It invested in Jeju Air, a stock mentioned as a reopening stock, securing a 6.04% stake. Increasing its stake in Hana Tour to 6.52% can also be seen in the same context.

It also invested in dividend stocks that can provide stable returns during a stock market downturn. The NPS secured up to a 5.01% stake in Macquarie Infrastructure. This is the first time the NPS has appeared as a major shareholder since Macquarie Infrastructure's listing. Macquarie Infrastructure is a company under the Macquarie Group, the world's largest infrastructure asset manager and Australia's largest investment bank, operating businesses such as roads, tunnels, bridges, railroads, and city gas.

Researcher Jang Moon-jun of KB Securities explained, "Macquarie Infrastructure has a revenue structure based on long-term contracts and a transparent cost structure, resulting in high earnings visibility, and at the current stock price level, a stable dividend yield of over 7% can be expected."

The NPS also increased its stake in Zinus, a specialized mattress company, to 5.01%. Accordingly, it became the third-largest shareholder following Hyundai Department Store (36.98%) and founder Lee Yoon-jae (6.66%). Zinus plans to conduct a bonus issue every year and maintain a dividend payout ratio of 25%. Researcher Choi Jong-kyung of Heungkuk Securities emphasized, "There is sufficient room for performance improvement," adding, "Regular annual bonus issues and a 25% dividend payout policy are positive for enhancing shareholder value."

Meanwhile, the stocks in which the NPS increased its holdings in the disclosure on the 3rd follow the same investment strategy trend. It increased its stake in Hotel Shilla, considered a reopening stock, from 7.58% to 10.67%, up by 3.09 percentage points. It also increased its holdings in Samyang Foods (1.13%), GS Retail (1.03%), and Orion Holdings (1.00%), raising their current shareholding ratios to 9.61%, 9.29%, and 6.09%, respectively.