"Focus on Stocks with High Potential for Inclusion in the Value-Up Index"

Seungwoong Lee Yuanta Securities Researcher 'Upcoming Value-Up Index'

Considering that the Value-Up Index is scheduled to be announced later this month, advice has been given to pay attention to stocks that are likely to be included in the Value-Up Index in September.

Lee Seung-woong, a researcher at Yuanta Securities, stated in a report on the 2nd, "We judge that September is the time to regain interest in Value-Up," adding, "In particular, preliminary disclosures from large conglomerates such as Hyundai Motor, POSCO, and LG are increasing, and most of them plan to announce corporate value enhancement plans within the fourth quarter of this year."

He expected that participation in Value-Up by non-financial sectors would rapidly increase considering the upcoming Value-Up schedule. Previously, the Korea Exchange held a Value-Up meeting targeting the top 10 groups to encourage participation in the Value-Up program.

Researcher Lee said, "Among the nine companies that have currently disclosed corporate value enhancement plans, four are in the financial sector, and among the 18 companies that have made preliminary announcements, 10 are financial companies. However, among the 19 Value-Up related disclosures made since August, 11 are from non-financial sectors, showing a rapid increase. Therefore, corporate value enhancement, which has been mainly disclosed in the financial sector, is expected to expand to various industries."

Yuanta Securities summarized the implementation status of Value-Up, shareholder return policies, and investment indicators of 31 companies planning or implementing Value-Up by sector, and found that only three companies?Hyundai Motor, POSCO Holdings, and LG?had made Value-Up related disclosures among the 31 companies.

The companies analyzed by Yuanta Securities include Hyundai Motor, Kia, Hyundai Mobis, Samsung Electronics, SK Hynix, TCK, Comico, Wonik QnC, Hana Materials, SK Innovation, LG Chem, Lotte Chemical, Hanwha Solutions, Kumho Petrochemical, Kolon Industries, SK Telecom, LG Uplus, SK, LG, CJ, SK Square, POSCO Holdings, Korea Zinc, Samsung E&A, Hyundai Construction, DL E&C, Samsung SDS, Hecto Innovation, Gamseong Corporation, Megastudy Education, and DoubleU Games.

The researcher suggested, "Most companies have medium- to long-term shareholder return policies and are actively engaged in share buybacks and cancellations in addition to cash dividends, so there is a high possibility of inclusion in the Value-Up Index, and it is necessary to pay attention."