January 30, 2020 Korea Morning Focus

Company News & Analysis Major Indices Close Chg Chg (%) Electro-Mechanics (009150/Buy/TP: W160,000) Raise TP KOSPI 2,185.28 8.56 0.39 A mixed outlook KOSPI 200 293.98 1.21 0.41 KOSDAQ 670.18 5.48 0.82 LG Innotek (011070/Buy/TP: W201,000) Raise TP Positives abound Turnover ('000 shares, Wbn) Volume Value POSCO Chemical (003670/Trading Buy/TP: W70,000) Downgrade rating, KOSPI 681,558 6,590 but raise TP KOSPI 200 84,850 4,457 KOSDAQ 1,040,290 5,574 Expectations of growth driving shares higher

Market Cap (Wbn) LG H&H (051900/Buy/TP: W1,640,000) Value growth on track KOSPI 1,472,172 KOSDAQ 242,426

KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,649 1,548 101 Institutional 1,534 2,032 -498 3,355 2,982 373

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 561 599 -38 Institutional 197 206 -9 Retail 4,792 4,713 79

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 1,445 1,467 -21 KOSDAQ 505 571 -66

Advances & Declines Advances Declines Unchanged KOSPI 516 305 88 KOSDAQ 779 450 115

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value 59,100 300 965 Hynix 97,900 1,600 269 KODEX Leverage 14,355 40 268 KODEX Kosdaq150 8,220 170 208 Leverage KODEX 200 Futures 6,095 -35 174 Inverse 2X

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Boditech 16,900 0 229 OKONG Corp. 7,690 520 212 Paru 4,655 5 199 Sugentech 8,430 690 164 DongKoo Bio & Pharma 20,000 2,550 125 Note: As of January 29, 2020

This document is a summary of a report prepared by Mirae Asset Co., Ltd. (“Mirae Asset Daewoo”) and published on our website. Please review the compliance notices contained in the original report. Information and opinions contained herein have been compiled in good faith from sources deemed to be reliable. However, the information has not been independently verified. Mirae Asset Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy or completeness of the information and opinions contained in this document. Mirae Asset Daewoo accepts no responsibility or liability whatsoever for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. Information and opinions contained herein are subject to change without notice. This document is for informational purposes only. It is not and should not be construed as an offer or solicitation of an offer to purchase or sell any securities or other financial instruments. This document may not be reproduced, further distributed or published in whole or in part for any purpose.

Samsung Electro-Mechanics (009150 KS) A mixed outlook

Technology 4Q19 review: Decent OP of W138.6bn (-55.2% YoY, -26.7% QoQ) Results Comment For 4Q19, Samsung Electro-Mechanics (SEMCO) announced revenue of W1.85tr (-5.3% January 30, 2020 YoY, -16.7% QoQ) and operating profit of W138.6bn (-55.2% YoY, -26.7% QoQ), which were 6.5% (vs. W1.97tr) and 1.1% (vs. W140.2bn) below our estimates, respectively. The market was looking for revenue of W1.99tr and operating profit of W122.6bn. We believe the latest results were solid overall. At the module solutions unit, revenue (Maintain) Buy disappointed due to the waning effects of Samsung Electronics’ (SEC) Galaxy Note 10 sales, but margins were decent, which we attribute to favorable currency effects. The Target Price (12M, W) ▲ 160,000 4Q19 average US$/W rate was 1,176, higher than our expectation. We estimate a gain of 10 in the US$/W rate leads to a W1.5bn increase in operating profit. Share Price (01/29/20, W) 132,500 At the component solutions unit, multi-layer ceramic capacitor (MLCC) OP margin rose for the first time in five quarters. We estimate the unit’s 4Q19 OP margin improved Expected Return 21% 3.2%p QoQ to 13.8%. Utilization also rose from 75% in 3Q19 to 80% in 4Q19. That said, ASP still declined. OP (19F, Wbn) 706 Of note, the company recognized W254.2bn in losses from discontinued operations, Consensus OP (19F, Wbn) 683 following the substrate solutions unit’s (RF-PCB, BGA, etc.) exit from the HDI business. Given that the HDI business previously recorded quarterly losses of around W20-30bn, EPS Growth (19F, %) -21.6 its discontinuation should have a positive impact on 2020 earnings. Market EPS Growth (19F, %) -34.6 P/E (19F, x) 18.9 Substrates and camera modules stabilizing; Pace of improvement in MLCCs Market P/E (19F, x) 15.2 to be key KOSPI 2,185.28 Looking to 1Q20, we anticipate revenue of W2.07tr (+0.3% YoY, +12.0% QoQ) and Market Cap (Wbn) 9,897 operating profit of W161.2bn (-33.5% YoY, +16.3% QoQ). The upcoming launch of the Shares Outstanding (mn) 78 Galaxy S20 should provide a boost to module solutions earnings, while the substrate Free Float (%) 73.4 solutions unit should continue profitability thanks to its withdrawal from loss-making Foreign Ownership (%) 31.6 businesses. Beta (12M) 1.11 One area of concern is the component solutions unit, which includes MLCCs. While we 52-Week Low 84,600 see positive effects coming from automotive MLCCs and the proliferation of 5G in 52-Week High 137,000 2H20, meaningful earnings improvement looks unlikely in 1H20, especially given the (%) 1M 6M 12M high margins recorded in 1Q19. Absolute 5.6 46.7 16.7 Reiterate Buy and lift TP to W160,000 Relative 6.5 36.3 16.6 The substrate and camera module businesses are now normalizing. Substrate margins 150 Samsung Electro-Mechanics are likely to improve due to the exit from the PLP/HDI businesses, while camera KOSPI 130 module margins should stabilize on the application of the company’s folded technology. The Galaxy S20 should also have positive effects. The key question going 110 forward will be how quickly the MLCC business can improve. We reiterate our Buy

90 rating on SEMCO and lift our target price to W160,000 (from W151,000), applying a target P/B of 1.9x (45% premium to five-year average; vs. 1.83x previously). Our target 70 1.19 5.19 9.19 1.20 price implies upside potential of 20.8%. We think the stock may need to take a breather following its recent run.

Mirae Asset Daewoo Co., Ltd.

[ Telecom Equipment/Electronic FY (Dec.) 12/16 12/17 12/18 12/19F 12/20F 12/21F Components] Revenue (Wbn) 6,033 6,838 8,193 8,200 8,552 9,350

Wonjae Park OP (Wbn) 24 306 1,018 706 821 969 +822-3774-1426 OP margin (%) 0.4 4.5 12.4 8.6 9.6 10.4 [email protected] NP (Wbn) 15 162 656 514 620 737

EPS (W) 190 2,084 8,457 6,628 7,993 9,495

ROE (%) 0.3 3.8 14.5 9.7 10.2 11.0

P/E (x) 268.0 48.0 12.2 18.9 16.6 14.0 P/B (x) 0.9 1.8 1.6 1.6 1.6 1.4

Dividend yield (%) 1.0 0.8 1.0 0.9 0.9 1.0

Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

LG Innotek (011070 KS) Positives abound

Technology 4Q19 review: Surprise OP of W209.3bn (+102.0% YoY, +12.2% QoQ) Results Comment For 4Q19, LG Innotek reported revenue of W2.97tr (+22.0% YoY, +21.2% QoQ) and January 30, 2020 operating profit of W209.3bn (+102.0% YoY, +12.2% QoQ), exceeding our expectations (W2.74tr and W180.8bn, respectively). The market was looking for revenue of W2.7tr and operating profit of W158.8bn. The biggest drivers were the optical solutions unit (camera modules and 3D sensing (Maintain) Buy modules) and currency effects. Two of the three new iPhones adopted triple cameras. We estimate triple camera ASP is over US$50, vs. the low-US$30 level for dual camera Target Price (12M, W) ▲ 201,000 modules. iPhone sales remained robust through December (typically a weak month), supporting continued gains in ASP. Share Price (01/29/20, W) 158,000 Currency also had a positive impact on earnings. An increase of 10 in the US$/W rate adds an estimated W1.5bn to the firm’s monthly operating profit. In 4Q19, we believe Expected Return 27% the currency impact was amplified by an increase in dollar-based revenue due to the new iPhone effects. The 4Q19 average US$/W rate was 1,176, higher than the market forecast of 1,160. On the non-operating side, we believe the company booked W100bn OP (19F, Wbn) 403 in expenses, partly due to the discontinuation of the HDI business. In our view, such Consensus OP (19F, Wbn) 370 aggressive expense recognition bodes well for 2020 earnings. EPS Growth (19F, %) -37.3 Robust earnings to continue in 1H20; Seasonality to abate Market EPS Growth (19F, %) -34.6 P/E (19F, x) 32.4 Looking to 1Q20, we expect revenue of W1.8tr (+31.7% YoY, -39.2% QoQ) and operating Market P/E (19F, x) 15.2 profit of W35.9bn (turning to profit YoY, -82.8% QoQ). We project optical solutions KOSPI 2,185.28 revenue to expand 70.5% YoY, boosted by continued strong sales of Apple’s products and the likely release of new products. Market Cap (Wbn) 3,739 Shares Outstanding (mn) 24 In 2020, we anticipate the substrates/materials unit’s earnings growth to accelerate, Free Float (%) 59.2 thanks to the discontinuation of the loss-making HDI business. We forecast the unit’s Foreign Ownership (%) 33.1 operating profit to grow from W156.3bn in 2019 to W214.7bn in 2020. This is Beta (12M) 0.77 encouraging, as it signals a diversification in the operating profit mix away from 52-Week Low 92,800 camera modules. 52-Week High 158,000 Reaffirm Buy and raise TP to W201,000 (%) 1M 6M 12M The 2020 outlook for Apple appears bullish; iPhone unit sales look increasingly likely to Absolute 12.9 41.7 64.6 grow this year. Apple’s new smartphone release in 1H20 should also help LG Innotek Relative 13.8 31.6 64.4 by easing seasonality, while Apple’s adoption of time-of-flight (ToF) modules in 2H20 should lift ASP per unit. We could also begin to see the effects of efficiency 180 LG Innotek KOSPI enhancements in the LED business and the discontinuation of the HDI business. We 160 reaffirm our Buy call on LG Innotek and raise our target price to W201,000 (from 140 W171,000), applying a P/B of 1.87x (30% premium to five-year average; vs. 1.58x 120 previously) to our 12-month forward BPS of W107,449. 100

80 1.19 5.19 9.19 1.20

Mirae Asset Daewoo Co., Ltd.

[ Telecom Equipment/Electronic FY (Dec.) 12/16 12/17 12/18 12/19F 12/20F 12/21F Components] Revenue (Wbn) 5,755 7,641 7,982 8,302 9,394 9,791

Wonjae Park OP (Wbn) 105 296 264 403 457 488 +822-3774-1426 OP margin (%) 1.8 3.9 3.3 4.9 4.9 5.0 [email protected] NP (Wbn) 5 175 163 102 303 294

EPS (W) 209 7,385 6,891 4,324 12,806 12,435

ROE (%) 0.3 9.4 8.0 4.7 12.8 11.1

P/E (x) 422.4 19.5 12.5 32.4 12.3 12.7 P/B (x) 1.2 1.7 1.0 1.5 1.5 1.3

Dividend yield (%) 0.3 0.2 0.3 0.2 0.2 0.2

Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

POSCO Chemical (003670 KS) Expectations of growth driving shares higher

Advanced Materials Stock rallies on improving sentiment on global EV industry Company Report Since October 2019, POSCO Chemical’s stock has rallied 45%. We believe the main driver has been improved sentiment on the global electric vehicle (EV) industry January 30, 2020 triggered by Tesla. During this time, 1) POSCO Chemical did not announce any additional capacity expansion plans for battery materials, 2) cathode material prices have fallen 10%, and 3) prices of needle coke, which is sold by affiliate PMC Tech, have plunged roughly 20%. While the company did announce a three-year cathode supply st (Downgrade) Trading Buy deal with LG Chem on January 21 , this had already been anticipated by the market (due to the company’s disclosure of its medium/long-term cathode capacity ramp-up plans in 4Q18) and thus does not fully explain the stock’s strong gains. Target Price (12M, W) ▲ 70,000 2020 revenue to surge 35% to W2tr, but net profit to contract Share Price (01/29/20, W) 59,900 In 2020, we expect revenue to surge 35% to around W2tr, driven by sales volume growth of cathode and anode materials following a series of capacity ramp-ups. Expected Return 17% However, we project net profit to contract, as we believe: 1) operating profit growth will lag behind revenue growth, affected by the initial operation of new capacities; and 2) equity-method gains from PMC Tech will tumble from W26bn in 2019 to W2bn in 2020 OP (19F, Wbn) 91 as a result of weaker needle coke prices. Consensus OP (19F, Wbn) 92 Still, medium/long-term growth prospects remain intact EPS Growth (19F, %) -22.5 Nevertheless, we believe POSCO Chemical’s medium/long-term growth prospects Market EPS Growth (19F, %) -34.6 remain intact, as battery material capacity expansions are likely to continue on the P/E (19F, x) 28.4 back of an expanding EV market. Management has so far revealed plans to expand capacity to 59,000 tonnes for cathode materials and 76,000 tonnes for anode materials Market P/E (19F, x) 15.2 by 2022. However, we think the company will go further and continue to expand KOSPI 2,185.28 capacity beyond 2022, as the EV market grows. Market Cap (Wbn) 3,653 We also think the company could take over battery material-related businesses Shares Outstanding (mn) 61 currently operated or being built by POSCO, similar to what we saw with the POSCO Free Float (%) 34.6 ESM acquisition. Currently, POSCO operates a 5,000-tonne cathode material plant (60% Foreign Ownership (%) 7.6 owned by POSCO and 40% owned by Huayou Cobalt) and a 5,000-tonne precursor Beta (12M) 1.04 plant (40% owned by POSCO and 60% owned by Huayou Cobalt) in China (both plants 52-Week Low 41,250 were completed in August 2019 and are currently in pilot operation). POSCO is also set to break ground on a 40,000-tonne lithium processing plant (79% owned by POSCO 52-Week High 71,400 and 21% owned by Pilbara Minerals) in Gwangyang this March, and has been building (%) 1M 6M 12M a 25,000-tonne lithium extraction and processing plant in Argentina since 2019. Absolute 26.1 25.1 0.5 Take medium/long-term approach if stock corrects on sluggish earnings Relative 27.2 16.1 0.4 We raise our target price on POSCO Chemical to W70,000 (from W60,000). In light of 140 POSCO Chemical KOSPI the company’s medium/long-term growth prospects, we applied a target multiple of 30x (vs. 25x previously) to our EPS estimate for 2023, the year in which planned 120 capacity expansions will come fully online. Given the implied upside potential, we 100 downgrade our rating from Buy to Trading Buy. We advise taking a medium/long-term approach in the event of any correction triggered by sluggish earnings. 80

60 1.19 5.19 9.19 1.20

Mirae Asset Daewoo Co., Ltd.

[ Metals & Mining/Machinery] FY (Dec.) 12/16 12/17 12/18 12/19F 12/20F 12/21F Revenue (Wbn) 1,118 1,197 1,384 1,491 2,020 2,565 Jaekwang Rhee +822-3774-6022 OP (Wbn) 85 104 106 91 115 154 [email protected] OP margin (%) 7.6 8.7 7.7 6.1 5.7 6.0

NP (Wbn) 44 104 132 105 87 116 EPS (W) 740 1,753 2,237 1,733 1,419 1,906 ROE (%) 8.0 17.2 19.0 12.0 8.4 10.5

P/E (x) 16.2 22.7 28.5 28.4 42.2 31.4 P/B (x) 1.3 3.6 5.0 3.0 3.4 3.2 Dividend yield (%) 2.5 0.9 0.6 0.8 0.7 0.7 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

January 30, 2020 POSCO Chemical

Table 1. Quarterly and annual earnings (Wbn, %) 1Q19 2Q19 3Q19 4Q19F 1Q20F 2Q20F 3Q20F 4Q20F 2018 2019F 2020F

Revenue 355 370 372 395 451 451 559 559 1,384 1,491 2,020 POSCO Chemical (parent) 343 358 359 385 441 441 549 549 1,341 1,445 1,980 Subsidiaries 12 12 13 10 10 10 10 10 43 47 40 Operating profit 22 17 28 25 27 27 30 30 106 91 115 POSCO Chemical (parent) 21 16 27 24 27 27 30 30 102 89 113 Subsidiaries 1 0 1 1 1 1 1 1 4 2 2 OP margin 6.2 4.5 7.5 6.2 6.0 6.0 5.4 5.4 7.7 6.1 5.7 POSCO Chemical (parent) 6.2 4.5 7.6 6.3 6.1 6.1 5.5 5.5 7.6 6.2 5.7 Subsidiaries 4.7 4.2 4.1 5.0 5.0 5.0 5.0 5.0 10.5 4.5 5.0 Equity-method income 10 9 7 1 0 0 0 0 71 26 2 Pretax profit 33 27 38 24 27 27 30 30 177 123 114 Net profit (controlling interests) 33 23 30 19 20 20 23 23 132 105 87 Source: Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research

LG H&H (051900 KS) China growth on track

Cosmetics 4Q19 review: Solid earnings

During market hours on January 29th, LG H&H reported solid 4Q19 results, with Results Comment revenue and operating profit coming in at W2.01tr (+18.5% YoY) and W241bn (+14.3% January 30, 2020 YoY), respectively. Operating profit was in line with the consensus.

In cosmetics (60% of consolidated revenue), revenue grew 27.3% YoY to W1.3tr, but OP margin declined 2.3%p YoY, affected by LG H&H’s acquisition of New Avon, a low-cost door-to-door business. (Maintain) Buy Duty-free store revenue (38% of total cosmetics revenue) grew only 11% YoY, despite Target Price (12M, W) 1,640,000 robust growth of the overall duty-free market (+29% YoY). LG H&H’s onshore cosmetics sales in China (17% of total cosmetics revenue) expanded 62% YoY in 4Q19 (vs. +30% Share Price (01/29/20, W) 1,296,000 YoY in 3Q19) at the expense of duty-fee shopping, supported by timely Singles Day marketing. Chinese cosmetics revenue expanded 26.2% YoY in 4Q19 (vs. +27.6% YoY in Expected Return 27% 3Q19) based on duty-free and onshore sales.

In household & personal care (21% of consolidated revenue), revenue inched up 1% YoY to W342.2bn, and operating profit increased 8.8% YoY to W9.2bn. OP (19F, Wbn) 1,176 Consensus OP (19F, Wbn) 1,171 In beverages (19% of consolidated revenue), revenue and operating profit climbed to W334.6bn (+8.4% YoY) and W11.9bn (+21% YoY), respectively. EPS Growth (19F, %) 14.0 Market EPS Growth (19F, %) -34.6 Earnings impact of the coronavirus outbreak P/E (19F, x) 25.3 Market P/E (19F, x) 15.3 At this point, it is hard to predict how far and how fast the coronavirus will spread. KOSPI 2,185.28 Assuming the current outbreak is similar in scale to the SARS outbreak in 2003, we estimate it may cause an approximately 15% YoY decline in LG H&H’s domestic duty- Market Cap (Wbn) 20,241 free revenue and onshore sales in China and an 8-10% drag on annual operating profit. Shares Outstanding (mn) 18 Free Float (%) 59.8 Reiterate Buy and TP of W1,640,000 Foreign Ownership (%) 45.0 We maintain our Buy call and target price of W1,640,000 on LG H&H. The stock is Beta (12M) 0.65 trading at a 2020F P/E of 22.5x, a 30% discount to the average of global luxury 52-Week Low 1,137,000 cosmetics names. We expect that discount to narrow, given: 1) the high share of China 52-Week High 1,453,000 luxury cosmetics revenue in the company’s overall cosmetics revenue (more than 40%, vs. average of 20-30% for global luxury brands); and 2) high earnings visibility (%) 1M 6M 12M supported by LG H&H’s increasing share in China’s luxury skin care market. Absolute 3.0 4.5 7.5 Relative 3.9 -2.9 7.4

130 LG H&H KOSPI 120

110

100

90

80 1.19 5.19 9.19 1.20

Mirae Asset Daewoo Co., Ltd.

[ Global Consumer] FY (Dec.) 12/16 12/17 12/18 12/19F 12/20F 12/21F Revenue (Wbn) 6,094 6,105 6,748 7,685 8,114 8,681 Woochang Chung +822-3774-6753 OP (Wbn) 881 930 1,039 1,176 1,312 1,474 [email protected] OP margin (%) 14.5 15.2 15.4 15.3 16.2 17.0

NP (Wbn) 568 606 683 778 900 1,027 EPS (W) 32,070 34,226 43,714 49,820 57,594 65,758 ROE (%) 24.9 21.9 20.5 19.9 19.5 19.0

P/E (x) 26.7 34.7 25.2 25.3 22.5 19.7 P/B (x) 5.8 6.9 5.6 5.4 4.7 4.0 Dividend yield (%) 0.9 0.8 0.8 0.8 0.9 1.1 Note: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, Mirae Asset Daewoo Research estimates

Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.

Mirae Asset Daewoo Research Key Universe Valuations January 30, 2020

※All data as of close January 28, 2020, unless otherwise noted.

19F Earnings growth Mkt Cap Price P/E (x) P/B (x) ROE (%) Ticker Company Div Yield OP EPS (Wbn) (W) (%) 19F 20F 19F 20F 19F 20F 19F 20F 19F 20F 005930 Samsung Electronics 352,814 59,100 2.4 -53.2 41.0 -46.6 37.2 18.4 13.4 1.5 1.4 8.7 11.1 000660 SK Hynix 71,271 97,900 1.5 -64.8 -3.0 -61.6 -3.2 11.9 12.3 1.3 1.2 12.1 10.6 035420 NAVER 29,666 180,000 0.2 -17.8 77.0 -47.3 132.4 86.8 37.4 4.3 3.9 6.3 13.4 005380 Hyundai Motor 27,991 131,000 3.1 52.1 39.6 103.3 59.0 12.0 7.6 0.5 0.5 4.3 6.6 051910 LG Chem 23,648 335,000 1.2 -55.7 70.9 -72.5 164.0 64.7 24.5 1.5 1.4 2.4 6.1 012330 22,826 239,500 2.1 17.9 16.4 24.3 17.1 9.9 8.5 0.7 0.6 7.3 7.9 068270 21,946 171,000 - - - - 0.0 0.0 028260 Samsung C&T 21,530 113,500 1.8 -21.5 23.4 -38.7 11.0 20.7 18.6 0.9 0.9 4.9 5.1 051900 LG H&H 20,241 1,296,000 0.8 13.2 11.5 14.0 15.6 26.0 22.5 5.6 4.7 19.9 19.5 005490 POSCO 19,748 226,500 4.4 -27.4 6.4 31.6 22.7 8.9 7.2 0.4 0.4 5.1 6.0 006400 Samsung SDI 19,735 287,000 0.3 -33.6 89.7 -37.7 75.8 46.2 26.3 1.6 1.5 3.6 5.9 055550 18,873 39,800 12.2 4.1 9.9 0.0 5.4 5.4 0.5 0.5 9.1 8.4 017670 SK Telecom 18,773 232,500 4.3 7.3 -3.5 -60.6 68.2 15.2 9.1 0.8 0.7 5.4 8.8 105560 KB Financial Group 18,400 44,250 6.3 4.4 9.2 3.4 5.5 5.4 0.5 0.4 9.0 8.5 000270 Motors 17,248 42,550 2.1 73.6 26.7 58.0 32.0 9.4 7.2 0.6 0.6 6.5 8.0 015760 KEPCO 16,659 25,950 - - - - - 135.9 0.2 0.2 - 0.2 034730 SK Holdings 16,499 234,500 2.1 -2.8 21.5 -36.6 11.0 11.6 10.5 0.9 0.8 8.2 8.3 018260 Samsung SDS 15,321 198,000 1.3 10.4 12.3 10.3 11.8 22.1 19.7 2.3 2.1 11.1 11.3 036570 NCsoft 14,248 649,000 0.9 -14.6 117.7 10.5 99.6 30.8 15.4 4.5 3.6 18.2 29.7 035720 14,113 163,500 0.1 179.1 115.5 220.9 96.5 83.1 42.3 2.7 2.5 3.2 6.1 032830 Samsung Life 13,940 69,700 - - - - 0.0 0.0 003550 LG Corp. 12,407 71,900 3.5 -28.0 45.0 -18.4 16.8 8.3 7.1 0.7 0.6 8.1 8.9 090430 AmorePacific 11,838 202,500 0.6 -8.4 18.7 -0.9 19.1 36.0 30.2 3.0 2.8 7.2 8.1 096770 SK Innovation 11,558 125,000 5.1 -42.8 18.2 -68.7 92.4 22.7 11.8 0.6 0.6 2.8 5.4 066570 LG Electronics 10,997 67,200 1.1 -6.4 13.9 -42.2 106.7 16.9 8.2 0.8 0.7 4.9 9.4 000810 Samsung F&M 10,138 214,000 - - - - 0.0 0.0 086790 10,043 33,450 -0.8 7.4 8.7 0.6 4.1 4.1 0.4 0.3 8.8 8.3 009150 Samsung Electro-Mechanics 9,897 132,500 0.8 -30.6 16.2 -21.6 20.6 20.0 16.6 1.7 1.6 9.7 10.2 010950 S-Oil 8,691 77,200 0.4 -13.3 197.8 -54.2 948.9 76.2 7.3 1.4 1.2 1.8 17.3 009540 KSOE 8,387 118,500 - 88.1 - -39.1 34.2 56.1 0.7 0.7 2.1 1.3 091990 Celltrion Healthcare 8,074 56,100 - 144.5 435.7 165.0 131.7 49.7 4.5 4.3 3.7 9.3 251270 7,812 91,100 1.8 57.7 14.5 36.9 35.7 26.1 1.6 1.5 4.9 6.3 010130 Korea Zinc 7,482 396,500 2.8 9.2 6.9 23.3 3.5 11.5 11.1 1.1 1.0 10.0 9.6 011170 Lotte Chemical 6,752 197,000 5.3 -46.0 12.7 -54.7 32.3 9.4 7.1 0.5 0.5 5.5 6.9 030200 KT 6,684 25,600 4.3 -2.4 -1.1 -7.8 21.0 10.5 8.7 0.5 0.4 4.7 5.5 024110 6,233 10,800 -3.6 -3.5 -4.5 -6.0 4.2 4.5 0.3 0.3 7.7 6.8 032640 LG Uplus 5,916 13,550 4.8 -11.8 10.9 -16.7 15.0 14.7 12.8 0.8 0.8 5.8 6.4 018880 Hanon Systems 5,845 10,950 - - - - 0.0 0.0 086280 5,663 151,000 2.3 23.4 -0.1 14.9 15.2 11.3 9.8 1.2 1.1 11.1 11.6 034220 LG Display 5,296 14,800 ------0.4 0.4 - - 267250 4,699 288,500 6.4 -1.6 92.1 74.3 199.2 10.0 3.4 0.6 0.5 6.0 16.5 Holdings 000720 Hyundai E&C 4,415 39,650 1.3 12.4 10.9 42.6 -6.7 8.1 8.7 0.7 0.6 8.3 7.3 010140 4,322 6,860 - - - - - 43.8 0.6 0.6 - 1.7 029780 Samsung Card 4,235 36,550 14.1 -10.7 1.0 8.2 12.1 11.2 0.6 0.6 1.5 1.6 004990 3,913 37,300 2.1 91.0 11.9 198.2 20.3 7.2 6.0 0.4 0.4 7.5 8.3 071050 Korea Investment Holdings 3,840 68,900 - - - - 0.0 0.0 004020 3,797 28,450 2.6 -53.6 23.0 -97.9 2611.5 454.7 16.8 0.2 0.2 0.0 1.3 011070 LG Innotek 3,739 158,000 0.2 53.0 13.4 -37.3 196.2 36.5 12.3 1.7 1.5 4.7 12.8 003670 POSCO Chemical 3,653 59,900 0.7 -14.2 26.4 -22.5 -18.1 34.6 42.2 3.6 3.4 12.0 8.4 012750 S1 3,526 92,800 2.9 4.1 8.1 48.7 10.6 23.0 20.8 2.4 2.3 11.8 12.4 Source: Mirae Asset Daewoo Research

Mirae Asset Daewoo Research Market Data January 30, 2020

※All data as of close January 29, 2020, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 467.14 -18.41 -3.79 -1.34 USD/KRW 1,176.70 1,167.20 1,161.20 1,116.90 KOSPI 2,185.28 8.56 0.39 0.46 JPY100/KRW 1,078.30 1,071.37 1,059.92 1,022.19 KOSDAQ 670.18 5.48 0.82 -0.57 EUR/KRW 1,296.84 1,286.20 1,288.82 1,276.56 Dow Jones* 28,722.85 187.05 0.66 0.65 3Y Treasury 1.33 1.35 1.37 1.82 S&P 500* 3,276.24 32.61 1.01 0.56 3Y Corporate 1.92 1.94 1.94 2.27 NASDAQ* 9,269.68 130.37 1.43 1.95 DDR4 8Gb* 3.38 3.37 3.03 5.95 Philadelphia Semicon* 1,893.27 44.41 2.40 0.28 NAND MLC 64G* 2.49 2.49 2.34 2.60 FTSE 100* 7,480.69 68.64 0.93 -1.63 Oil (Dubai)* 58.57 62.23 67.88 60.32 Nikkei 225 23,379.40 163.69 0.71 0.75 Gold* 1,569.80 1,577.40 1,513.80 1,303.10 Hang Seng* 27,949.64 40.52 0.15 -2.08 Customer deposits (Wbn)* 30,221 27,033 28,714 24,269 Taiwan (Weighted) 12,118.71 0.15 Equity type BC (Wbn)(Jan. 23) 87,927 88,538 85,862 86,954 Note: * as of January 28, 2020 Source: KSDA, FnGuide, DRAMeXchange, MSCI

KOSPI Top 10 Foreign Net Buy / Net Sell (Wbn) KOSPI Top 10 Institutional Net Buy / Net Sell (Wbn) Net Buy Net Sell Net Buy Net Sell LG Household & Health Care 32.90 Shilla 11.05 KT&G 28.88 Samsung Electronics 150.45 Samsung Electronics 28.30 LG Electronics 9.64 KODEX Kosdaq150 Leverage 18.79 LG Household & Health Care 22.11 Hyundai Motor 24.55 SK Energy 8.32 LG Innotek 12.07 Celltrion 20.85 Hynix 22.99 Posco Chemtech 7.51 10.36 Hyundai Mobis 20.69 KT&G 15.81 Amore Pacific 7.23 KODEX 200 7.24 Samsung Electronics (P) 19.74 Macquarie Korea Infrastructure SEMCO 12.46 SK C&C 6.68 6.62 Hyundai Motor 19.02 Fund NC Soft 9.93 Hyundai Wia 5.40 SK C&C 5.73 POSCO 15.55 SK Telecom 8.57 LG Chem 5.03 International 3.96 KODEX Leverage 14.91 Samsung C&T 8.48 Kolmar Korea 4.57 J contentree 2.93 Shinhan Financial Group 14.64 7.10 KODEX 200 4.34 LG Electronics 2.61 KODEX 200 Futures Inverse 2X 14.21 Source: KSDA, FnGuide

KOSDAQ Top 10 Foreign Net Buy / Net Sell (Wbn) KOSDAQ Top 10 Institutional Net Buy / Net Sell (Wbn) Net Buy Net Sell Net Buy Net Sell Celltrion Healthcare 11.72 HLB 10.85 Celltrion Healthcare 13.00 CJ ENM 3.61 Settlebank 11.63 BH,LTD. 6.69 Settlebank 2.80 REMED 3.07 OSSTEM IMPLANT 6.77 Winix 3.75 BH,LTD. 2.67 Changhae Ethanol 2.85 Mezzion Pharma 3.56 Toptec 3.49 Hugel 1.93 Leeno 2.83 JYP Entertainment 3.33 SillaJen 3.44 UniTest 1.93 DongKoo Bio & Pharma 2.68 Ahn Lab 3.33 Chemtronics 3.24 Chunbo 1.75 PearlAbyss 2.58 Suprema 2.84 Dongjin Semichem 2.77 Eugene Technology 1.65 Bioneer 2.49 Paradise 2.73 ViroMed 2.67 Unisem 1.49 SUPEX BNP 1.99 Seojin System 2.59 ADTechnology 2.44 1.46 Boditech 1.87 RFHIC 2.04 UniTest 2.41 Mezzion Pharma 1.44 ADTechnology 1.78 Source: KSDA, FnGuide

KOSPI Top 10 by Market Cap (Wbn) KOSDAQ Top 10 by Market Cap (Wbn) Close (W) Chg (W) Mkt Cap Close (W) Chg (W) Mkt Cap Samsung Electronics 59,100 300 352,814 Celltrion Healthcare 56,100 3,100 8,074 Hynix 97,900 1,600 71,271 HLB 99,800 -1,700 4,265 Samsung Electronics (P) 49,600 500 40,815 CJ ENM 142,400 100 3,123 Samsung Biologics 491,000 -3,000 32,487 PearlAbyss 185,500 0 2,416 NAVER 180,000 1,500 29,666 Studio Dragon 84,800 3,300 2,383 Hyundai Motor 131,000 0 27,991 KMW 55,600 0 2,214 LG Chem 335,000 -1,500 23,648 Hugel 438,400 10,200 1,894 Hyundai Mobis 239,500 -5,500 22,826 Medy-tox 320,200 5,000 1,862 Celltrion 171,000 500 21,946 Wonik IPS 35,850 -50 1,760 Samsung C&T 113,500 1,500 21,530 Soulbrain 98,600 400 1,715 Source: