Thanks to Secondary Batteries, POSCO Smiles... Shinsegae and Lotte Struggle Due to Consumption Slowdown

Analysis of Market Capitalization Changes in Listed Subsidiaries of Top 10 Groups
POSCO Group's Market Cap Increased by 96% Compared to End of Last Year
All Listed Subsidiaries of Shinsegae Show Decline in Stock Prices
LG Saenghwal Geongang is the Stock with the Largest Market Cap Shrinkage

Amid the rollercoaster performance of secondary batteries in the stock market this year, it has been revealed that secondary batteries also had a significant impact on the market capitalization of the top 10 conglomerates. Riding on the success of secondary batteries, POSCO Group's market capitalization nearly doubled. In contrast, the economic downturn and sluggish performance of retail stocks were directly reflected in the market capitalization of related groups.

According to financial information provider FnGuide on the 22nd, among the top 10 conglomerates, POSCO saw the largest increase in market capitalization this year. As of the 17th, POSCO Group's market capitalization was KRW 81.5267 trillion, up 96.02% from KRW 41.5917 trillion at the end of last year. SK Group followed with a 34.75% increase, then Hanwha (29.65%), Hyundai Motor (23.19%), Samsung (18.12%), and HD Hyundai (8.25%) in that order.

On the other hand, LG, GS, Lotte, and Shinsegae saw decreases in market capitalization. Shinsegae experienced the largest decline at 22.11%. Next were Lotte with a 10.17% decrease, GS with 7.13%, and LG with 5.39%.

Among individual stocks, the company with the largest increase in market capitalization within the top 10 conglomerates was POSCO DX. POSCO DX's stock price surged an astonishing 804%, from KRW 6,250 at the end of last year to KRW 56,500 on the 17th. Its market capitalization ranking also jumped more than 40 places, from 46th in the KOSDAQ market at the end of last year to 4th. Hanwha Ocean followed with a 269.17% increase, POSCO International with 267.84%, POSCO M-Tech with 206.01%, and HD Hyundai Electric with 107.06%, all recording triple-digit growth rates.

The stock with the largest market capitalization decline was LG Household & Health Care. Its market capitalization dropped 53.25%, from KRW 11.2763 trillion at the end of last year to KRW 5.2711 trillion. HD Hyundai Energy Solutions fell 51.74%, NanoEntek 39.08%, Hanwha Solutions 33.65%, and Shinsegae International 33.21%, all showing significant decreases.

In addition to POSCO DX, POSCO International, and POSCO M-Tech recording triple-digit growth rates, POSCO Group's listed affiliates such as POSCO Holdings (67.63%), POSCO Steelion (59.94%), and POSCO Future M (58.89%) also saw substantial stock price increases, collectively contributing to the group's 96% rise in market capitalization.

Following POSCO, SK was the second-largest gainer in market capitalization, led by SK Hynix. SK Hynix's stock price rose 73.2% this year. The competitiveness in high-bandwidth memory (HBM) contributed to SK Hynix's stock price increase. Cha Min-sook, a researcher at Korea Investment & Securities, said, "Although losses continue, the deficit is narrowing each quarter, and SK Hynix was the first among competitors to return to profitability in DRAM. The competitiveness in HBM and the market preemption effect are expected to continue through next year. While the stock price rose rapidly on expectations for HBM, considering that the memory upcycle is in its early stages, there is ample room for further growth." Additionally, SK Rent-a-Car rose 58.41%, SK Square 42.31%, and SK Networks 38.70%, supporting the increase.

Samsung's market capitalization growth was driven by the 31.1% rise in its flagship Samsung Electronics and a 44.81% increase in Samsung Heavy Industries' stock price, thanks to its return to profitability. Choi Kwang-sik, a researcher at Daol Investment & Securities, noted, "Samsung Heavy Industries showed improvement for three consecutive quarters this year: a return to profitability in Q1, a one-off adjusted return to profitability in Q2, and a jump in profitability in Q3. Sales growth and a turnaround in performance are expected to continue next year."

With the sluggishness of retail stocks becoming prominent, Shinsegae, Lotte, and GS saw declines in market capitalization. Shinsegae's group market capitalization fell more than 22% this year, with all listed affiliates posting negative stock price returns. Shinsegae International dropped 33.21%, Emart -21.94%, Shinsegae -21.59%, Shinsegae Construction -20.24%, Shinsegae Food -16.86%, Shinsegae I&C -11.85%, and Gwangju Shinsegae -3.28%, all showing weakness. Among Lotte's 11 listed affiliates, 8 saw stock price declines. Jo Sang-hoon, a researcher at Shinhan Investment Corp., explained, "The unprecedented inflation since the second half of last year followed by an economic downturn and prolonged consumption slowdown led to deteriorating performance in domestic sectors. Additionally, fatigue from frequent price increases over the past two years negatively impacted sales volume."