HD Hyundai's Group Market Cap Rises 41% in H1
SK, Hanwha, Hyundai Motor, and GS Also Show Growth
Meanwhile, Samsung, POSCO, LG, Shinsegae, and Lotte Decline
Among the top 10 conglomerates, HD Hyundai showed the largest increase in market capitalization in the first half of this year. Its market cap grew by more than 40% during the period. The surge in HD Hyundai Electric's stock price, which rose over 240% in the first half, drove the group's market cap growth. The total market capitalization of the top 10 groups increased by only 11 trillion KRW compared to the end of last year. In the second quarter, the increase from the first quarter was given back due to the sluggish performance of the Samsung Group.
According to financial information provider FnGuide on the 12th, as of the 10th of this month, HD Hyundai's market capitalization rose from 34.315 trillion KRW at the end of last year to 48.404 trillion KRW, an increase of 41.06%. This was the largest increase among the top 10 groups. SK followed with a 26.05% increase, then Hanwha with 15.81%, Hyundai Motor with 13.35%, and GS with 6.68% growth respectively.
On the other hand, the market caps of POSCO, LG, Shinsegae, Lotte, and Samsung decreased compared to the end of last year. POSCO recorded the largest decline at 27.14%, followed by LG (-14.25%), Shinsegae (-12.15%), Lotte (-8.92%), and Samsung (-2.86%).
HD Hyundai's market cap growth was led by HD Hyundai Electric. HD Hyundai Electric's stock price surged 246.11% this year. Its market capitalization expanded from 2.963 trillion KRW at the end of last year to 10.255 trillion KRW. Lee Sang-hyun, a researcher at BNK Investment & Securities, said about HD Hyundai Electric, "Considering the global power infrastructure investment and the increasing cycle of transformer demand, the stock price is expected to continue its upward trend." He added, "This year's annual performance is projected to show a 23% increase in sales compared to the same period last year, reaching 3.337 trillion KRW, and operating profit is expected to rise 65% to 519.4 billion KRW." Additionally, HD Korea Shipbuilding & Offshore Engineering increased by 11.41%, HD Hyundai by 6.64%, HD Hyundai Energy Solutions by 4.47%, and HD Hyundai Construction Equipment by 2.51%. Furthermore, the listing of HD Hyundai Marine Solutions in May also contributed to the group's market cap.
The SK Group's market cap growth was driven by significant increases in SKC, SK Square, and SK Hynix. SKC's market cap rose 87.31%, SK Square's by 65.53%, and SK Hynix's by 47% this year. In particular, SK Hynix showed a remarkable stock price rise in the first half, reaching the '200,000-won' mark. On the previous day, it hit an intraday high of 215,000 KRW, setting a new record. The advantage in high-bandwidth memory (HBM), which pushed SK Hynix's stock price up, is expected to continue throughout the year, sustaining the stock's strength. Cha Min-sook, a researcher at Korea Investment & Securities, said, "SK Hynix completed certification for HBM3 to Nvidia in October 2022 and is currently mass-producing and selling it. The next-generation product, HBM3e, was certified in March this year and has started mass production and sales." She added, "Customers begin purchasing components before new product launches to secure safety stock, so being selected as the primary supplier according to the customer's certification schedule is advantageous in securing sales volume and all other aspects. Regardless of competitors' certification status, SK Hynix is expected to maintain its advantage up to HBM3e." Korea Investment & Securities raised SK Hynix's target price by 9% to 240,000 KRW.
The combined market capitalization of the top 10 groups increased by 11.249 trillion KRW from 1,351.666 trillion KRW at the end of last year to 1,362.915 trillion KRW. However, considering that it exceeded 1,400 trillion KRW in the first quarter, increasing by nearly 50 trillion KRW compared to the end of last year, most of the gains were given back in the second quarter. The sluggish stock market trend in April and May is interpreted as the reason for the slowdown in market cap growth. In particular, the Samsung Group's poor performance had an impact. Samsung's market cap increased by nearly 5% in the first quarter but turned negative in the second quarter. Samsung Group's market cap, which approached 690 trillion KRW at the end of the first quarter, fell to the 630 trillion KRW level.
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