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Economic Analysis

Asia Infrastructure Investment Bank

Abstract: Asia Infrastructure Investment Bank 亚洲基础设施投资银行 (AIIB) is a financial institution proposed by China on October 2013. It is an institution for large-scale infrastructure investments in Asia-Pacific area. Currently, by August 2015, 37 regional and 20 non-regional members are prospective founding members and 50 of which have signed the Articles of Agreement including South Korea, … Continue reading

Economic Analysis

Impact of Fed’s Decision on the Korean Real Estates Market

Abstract: After the recovery from the Asian Financial Crisis of 1997, the economy of South Korea underwent structural change in investment, from the fixed capital formation of firms to the residential speculation of households. The trend became evident after the Global Financial Crisis of 2008, when both the market value of the real estates and … Continue reading

Investment Analysis

2015.10.08 – SK Hynix (000660)

Rating: Overweight Target Price (KRW): 44,300 Price (8 Oct 2015, KRW): 37,550 3Q15 Earnings Forecast Solid: We forecast SK Hynix to post sales of KRW5.00T (+9%,QoQ), operating profit of KRW1.4T (-3%,QoQ) and net profit of KRW1.07T (-3%,QoQ) for its upcoming 3Q15 earnings announcement on Oct. 22. Despite recent downtrend in PC DRAM ASP, SK Hynix’s decision to increase Mobile … Continue reading

Investment Analysis

2015.10.08 – Daum Kakao (037520)

Rating: Overweight Target Price (KRW): 157,295 Price (8 Oct 2015, KRW): 123,300 In the last quarter, 2Q15, Daum Kakao’s earnings from game industry has been diminished to 53,984 million KRW. It has incurred some loss from its game business having some of its market share taken by its competitors. However, the numbers are improving due to “Friends Pop for … Continue reading

Investment Analysis

2015.09.29 – Michael Kors (KORS)

Rating: Overweight Target Price (USD): 57.70 Price (28 Sep 2015, USD): 40.55 In the past few years, the company saw an unprecedented high growth rate, where sales grew at ~53% CAGR. Market expectations, however, have remained rather pessimistic about KORS’ future prospects, with this year’s share price down 46% YTD. While the management’s guidance notes that the company is … Continue reading

Economic Analysis

The Effects of Quantitative Easing in US since 2008 and its Expected Response in 2016

Download: KEIC Macroecon Team 2 – US QE Revision and Prediction Abstract: US has implemented Quantitative Easing (QE) since the Global Financial Crisis in 2008. QE is a very conventional tool that is used to treat the economic confidence during the period of crisis and not many countries have implied in history. In this paper … Continue reading