Money Today's securities desk selected three best analyst reports for the first week of July (July 6-10), featuring target price adjustments on KB Financial Group, Hansem, and HD Hyundai Electric. DB Securities analyst Na Min-wook raised KB Financial's target price to 225,000 won, up 25,000 won (12.5%), citing record earnings and strong shareholder returns. Shinhan Investment analyst Park Hyun-jin increased Hansem's target to 38,000 won, up 2,000 won (5.6%), based on department store sales strength and European market entry. SK Securities analyst Na Min-sik lowered HD Hyundai Electric's target to 1.1 million won, down 400,000 won (26.7%), despite raised order guidance, attributing the cut to supply-demand dynamics. The reports reflect divergent sector trends in Korean financial services, apparel retail, and electrical equipment manufacturing.
DB Securities Raises KB Financial Target Price to 225,000 Won on Shareholder Return Outlook
DB Securities analyst Na Min-wook raised KB Financial Group's target price to 225,000 won from 200,000 won, a 12.5% increase, while maintaining a 'buy' rating. The analyst projected approximately 800 billion won in share buybacks in the second half of the year, bringing the estimated total shareholder return ratio for the year to 54.9%. The upgrade reflects improved net profit estimates, up approximately 5.2%, driven by interest income gains from rising rates and fee income improvement at non-bank subsidiaries. Na cited significant ROE (return on equity) improvement and strong shareholder return attractiveness as the basis for KB Financial being the top preferred stock within the sector. KB Financial Group held an opening ceremony for KB Financial Town in Jeonju, Jeonbuk on July 8, attended by KB Financial Group Chairman Yang Jong-hee and other officials.
Shinhan Investment Increases Hansem Target to 38,000 Won on European Expansion
Shinhan Investment Securities analyst Park Hyun-jin raised Hansem's target price to 38,000 won from 36,000 won, a 5.6% increase, maintaining a 'buy' rating. The adjustment reflects strong department store sales performance and successful European market entry by the Time and System brands. Park noted that Hansem's main brands showed continued strength in the second quarter, with both unit prices and sales volumes increasing more than 6% year-over-year, driving cost ratio improvements. Women's character brand Time and The Cashmere showed strong sales, while men's apparel saw increased sales centered on high-priced products including suits and premium blended knitwear. Imported brands including Ourlegacy and Totem grew more than 40% year-over-year based on per-store sales increases. In Paris, System opened an official store in the men's section of a major department store, contributing to monthly sales. The analyst noted that Hansem's PER (price-to-earnings ratio) for this year stands below 6x, at historical lows. On May 26, Hansem announced the launch of the 'Oakley × Meta AI Eyewear' collection at its online select shop EQL and flagship store EQL Grove in Seongsu-dong, Seoul.
SK Securities Cuts HD Hyundai Electric Target to 1.1 Million Won Despite Order Guidance Increase
SK Securities analyst Na Min-sik lowered HD Hyundai Electric's target price to 1.1 million won from 1.5 million won, a 26.7% reduction, while maintaining a 'buy' rating. The target price adjustment, the first since April 29, came despite strengthened fundamentals. On July 6, HD Hyundai Electric raised its annual order guidance from $4.2 billion to $5.2 billion at a meeting at its Cheongju distribution campus. The company cited production workforce expansion, production facility increases, and inclusion of distribution equipment and rotating equipment with relatively short lead times as reasons for the upward revision. Na noted that the order guidance increase does not immediately translate to this year's revenue, with sequential deliveries expected to stimulate growth in 2027-2028. On July 2, the company signed a long-term supply agreement (LTA) for data center power infrastructure with a global big tech company. Despite these positive developments, the stock price declined due to supply-demand shifts, with AI CAPEX-related investor interest previously spread across memory, optical communications, and power equipment sectors now concentrated in large-cap semiconductor stocks. The analyst assessed the decline as supply-demand driven rather than fundamentals-based, with fundamentals actually strengthening.
FAQ
What target price did DB Securities set for KB Financial stocks?
DB Securities analyst Na Min-wook raised KB Financial Group's target price to 225,000 won from 200,000 won, representing a 25,000 won (12.5%) increase, while maintaining a 'buy' investment rating.
Why did SK Securities lower HD Hyundai Electric's target price despite raised order guidance?
SK Securities analyst Na Min-sik lowered the target price to 1.1 million won from 1.5 million won (a 26.7% reduction) due to supply-demand dynamics, specifically the shift of AI CAPEX-related investor interest from power equipment stocks to large-cap semiconductor stocks, even though the company raised its annual order guidance from $4.2 billion to $5.2 billion on July 6.
How did Hansem's European expansion perform according to Shinhan Investment?
Shinhan Investment analyst Park Hyun-jin noted that Hansem's System brand opened an official store in the men's section of a major Paris department store, contributing to monthly sales and expanding brand presence through Paris collections.
