DOCSLIB.ORG

Hyundai Steel Announces Merger with Hyundai Hysco

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Hyundai Steel Announces Merger with Hyundai Hysco Steel (Overweight/Maintain) Hyundai Steel announces merger with Hyundai Hysco Hyundai Steel to merge with Hyundai Hysco: Deal to be finalized on July 1 st , 2015 News Comment Merger likely to create only limited synergies April 9, 2015 Recommended strategy: Buy POSCO st Daewoo Securities CCo.,o., Ltd. Hyundai Steel to merge with Hyundai Hysco; Deal to be finalized on July 1 [Steel/Non-ferrous metal] On April 8th, Hyundai Steel announced it has decided to merge with Hyundai Hysco. Hyundai Hysco shareholders will receive 0.8577607 shares of Hyundai Steel for each existing Hyundai Seung-hun Jeon Hysco share they own. Dissenting shareholders will be able to exercise appraisal rights at +822-768-2713 W72,100 per share for Hyundai Steel and W63,552 per share for Hyundai Hysco, which are, [email protected] respectively, 9.2% and 6.4% lower than current share prices. The 2,667,762 shares Hyundai Hysco owns in Hyundai Steel will be allocated to Hyundai Hysco shareholders, which will have the same impact as cancelling 2% of treasury shares. As a result, the merged company will have 133,445,785 shares outstanding (rather than 136,113,547 shares). Merger likely to create only limited synergies In our view, the merger effects are more psychological than tangible. While the merger does have some benefits, we also see several negative effects that could partially offset the positives. We believe potential merger synergies between the two companies were mostly realized after Hyundai Hysco spun off its cold-rolled coil (CRC) division to Hyundai Steel in December 2013. We think the latest merger will have limited benefits, given the likelihood of 1) an increase in current Hyundai Hysco employees’ pay (which is lower than that of Hyundai Steel’s employees), and 2) margin deterioration at the steel pipe business due to the use of Hyundai Steel’s relatively expensive hot-rolled coil (HRC). We estimate the merger will boost Hyundai Steel’s EPS by 4.9% (based on the 2014 figure), but mainly as a result of the 2% treasury stock retirement. Such an impact appears to have been mostly priced in after yesterday’s rally. 2) Due to the removal of internal transactions, operating profit growth is likely to outpace revenue growth following the merger, pushing OP margin higher. But in the long term, we view this as a negative to pricing, as a seemingly high margin may work to the company’s disadvantage at a time when major customers, most notably Hyundai Motor Group (HMG), are struggling with falling margins. Recommended strategy: Buy POSCO Hyundai Steel’s and Hyundai Hysco’s stocks could rise further, in line with the overall advance of the steel sector. In the short run, however, we believe POSCO is the best bet in the sector. Hyundai Steel’s stock has gained 11.2% in the past month on merger expectations, while POSCO’s stock has fallen 7.2% during the same period amid poor industry conditions and prosecutors’ probe into the steelmaker’s former chairman. We find it hard to see Hyundai Steel’s stock continuing to rise on the merger issue alone, considering that the actual benefits of the tie-up with Hyundai Hysco will be limited. The challenging earnings outlook for HMG also poses a headwind to the steelmaker’s stock. In 4Q13, hopes of a merger similarly drove Hyundai Steel higher, pushing the stock’s P/B far above POSCO’s. But, after the deal was announced, Hyundai Steel’s P/B converged with that of POSCO in the subsequent quarter. Thus, in the near term, we believe POSCO shares are likely to catch up. We see little differentiation between Hyundai Steel’s and Hyundai Hysco’s shares, as prices will move toward the pre-set merger ratio. Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including tthehe U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. April 9, 2015 Steel TableTableTable 111.1. Exchange ratioratioratio of Hyundai Steel and Hyundai Hysco ItemItemItem Hyundai Steel Hyundai Hysco Base price (W) 73,299 62,873 Share price for merger (W) 73,299 62,873 Exchange ratio 1 0.8577607 Appraisal right exercise price (W) 72,100 63,552 Source: Hyundai Steel, KDB Daewoo Securities Research TableTableTable 222.2. Changes in major shareholders’ stakes Hyundai Steel Hyundai Hysco After merger Hyundai Motors 7.9% 29.4% 11.2% Kia Motors 19.8% 15.7% 19.6% Hyundai Hysco 2.3% Jung Mong-gu 11.8% 10.0% 11.8% Treasury shares 0.6% 0.8% 0.6% Source: Hyundai Steel, KDB Daewoo Securities Research TableTableTable 333.3. Estimated impact of merger (based on 2014 figures) Hyundai Steel (A)(A)(A) Hyundai Hysco After merger (B)(B)(B) B/AB/AB/A (% chg.) Revenue (Wbn) 16,762 4,214 19,249 14.8 Operating profit (Wbn) 1,491 352 1,829 22.6 OP margin (%) 8.9 8.3 9.5 Pretax profit (Wbn) 1,099 242 1,327 20.7 Net profit (Wbn) 765 164 918 20.1 EPS (W) 6,600 7,258 6,925 4.9 Net asset (Wbn) 13,815 932 14,577 5.5 ROE (%) 5.5 17.6 6.3 BPS (W) 119,220 41,190 109,916 -7.8 Total # of shares (‘000) 116,550 22,808 133,446 14.5 # of outstanding shares (‘000) 115,879 22,627 132,619 14.4 Source: KDB Daewoo Securities Research Figure 111.1. Hyundai Steel’s stock hashashas risenrisenrisen on merger expectationsexpectations,, while POSCO’s has fallen (%) 25 Hyundai Steel POSCO Hyundai Hysco 15 5 -5 -15 1M return 2M return 3M return Source: Thomson Reuters, KDB Daewoo Securities Research KDB Daewoo Securities Research 2 April 9, 2015 Steel Figure 222.2... Hyundai SteelSteel’’’’ss P/Bs P/B roseroserose temporarily in 4Q13 ononon merger expectations, butbutbut converged with that of POSCO in subsequent quarter (x) 1.4 Hyundai Steel's P/B POSCO's P/B Operation of blast furnace 1.2 1 Merger expectations 0.8 Merger expectations 0.6 0.4 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/15 Source: Thomson Reuters, KDB Daewoo Securities Research TableTableTable 444.4. TTTimelineTimeline of merger Hyundai Steel Hyundai Hysco BOD resolutions 4/8/15 4/8/15 Merger contract date 4/8/15 4/8/15 Announcement of closing date of shareholders list 4/8/15 4/8/15 Closing date of shareholders list for general meeting 4/29/15 4/29/15 Closing period of shareholders list Start 4/30/15 4/30/15 End 5/8/15 5/8/15 Notification of shareholders’ meeting 5/13/15 5/13/15 Reporting objection to merger Start 5/13/15 5/13/15 End 5/27/15 5/27/15 General meeting for merger approval 5/28/15 5/28/15 Exercising of appraisal rights by dissenting shareholders Start 5/28/15 5/28/15 End 6/17/15 6/17/15 Old share certificates to be submitted Start 5/29/15 End 6/30/15 Objections by creditors Start 5/29/15 5/29/15 End 6/30/15 6/30/15 Merger date 7/1/15 7/1/15 BOD resolutions (reporting completion of merger) 7/1/15 Completion of merger contract to be announced 7/1/15 Registration of merger 7/1/15 7/1/15 Distribution of stock certificates 7/14/15 Listing of new shares 7/15/15 Source: Hyundai Steel, Hyundai Hysco, KDB Daewoo Securities Research KDB Daewoo Securities Research 3 April 9, 2015 Steel APPENDIX 1 Important Disclosures & Disclaimers 222-2---YearYear Rating and Target Price History Company (((Code)(Code)Code)Code) DateDateDate RatingRatingRating Target Price Company (((Code)(Code)Code)Code) DateDateDate RatingRatingRating Target Price POSCO(005490) 04/07/2015 Buy 340,000 10/07/2013 Buy 103,000 01/29/2014 Buy 400,000 07/15/2013 Buy 92,000 07/15/2013 Buy 430,000 04/21/2013 Buy 98,000 04/21/2013 Buy 440,000 03/28/2013 Buy 110,000 02/21/2013 Buy 460,000 Hyundai Hysco(010520) 08/10/2014 Hold - Hyundai Steel(004020) 01/29/2015 Buy 91,000 05/08/2014 Buy 70,000 11/06/2014 Buy 87,000 03/13/2014 Buy 58,000 07/17/2014 Buy 92,000 01/29/2013 Hold - 04/27/2014 Buy 88,000 (W) POSCO (W) Hyundai Steel (W) Hyundai Hysco 500,000 120,000 100,000 400,000 100,000 80,000 80,000 300,000 60,000 60,000 200,000 40,000 40,000 100,000 20,000 20,000 0 0 0 Apr 13 Apr 14 Apr 15 Apr 13 Apr 14 Apr 15 Apr 13 Apr 14 Apr 15 Stock Ratings Industry Ratings Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening Sell : Relative performance of -10% Ratings and Target Price History (Share price ( ─), Target price ( ▬), Not covered ( ■), Buy ( ▲), Trading Buy ( ■), Hold ( ●), Sell ( ◆)) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at Daewoo Securities, we may call a trading opportunity in case there is a technical or short-term material development.
Load more

Recommended publications
  • April 9, 2015
    April 9, 2015 KOREA Sector News & Analysis Major Indices Close Chg Chg (%) Steel (Overweight) KOSPI 2,058.87 -0.39 -0.02 Hyundai Steel announces merger with Hyundai Hysco KOSPI 200 258.33 -0.18 -0.07 KOSDAQ 676.96 8.93 1.34 Economy & Strategy Update Turnover ('000 shares, Wbn) April MPC Volume Value KOSPI 519,429 5,805 Expectations for a rate cut remain intact KOSPI 200 84,005 3,924 KOSDAQ 579,044 3,700 Market Cap (Wbn) Value KOSPI 1,285,499 KOSDAQ 180,759 KOSPI Turnover (Wbn) Buy Sell Net Foreign 1,421 1,349 72 Institutional 963 1,227 -264 Retail 3,371 3,188 184 KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 235 185 50 Institutional 179 186 -7 Retail 3,275 3,317 -42 Program Buy / Sell (Wbn) Buy Sell Net KOSPI 839 887 -49 KOSDAQ 35 39 -4 Advances & Declines Advances Declines Unchanged KOSPI 455 359 57 KOSDAQ 613 369 58 KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Samsung Electronics 1,483,000 4,000 251 Hynix 41,900 -700 234 KODEX LEVERAGE 11,435 -25 155 LG Chem 254,000 12,500 128 NHN 653,000 8,000 115 KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Daum Communications 110,300 3,200 152 Sansung P&C 91,800 11,900 136 GOLFZON 15,450 2,000 131 Coreana Cosmetics 7,920 380 89 Celltrion 73,500 -1,200 83 Note: As of April 9, 2015 This document is a summary of a report prepared by Daewoo Securities Co., Ltd.
    [Show full text]
  • Sungwoo Hitech (015750 KQ) Compelling Story and Cheap Valuation
    Sungwoo Hitech (015750 KQ) Compelling story and cheap valuation Auto 4Q13 review: Strong Chinese sales drive earnings beat Sungwoo Hitech’s 4Q13 earnings beat the market consensus, with revenue of Results Comment W802.6bn (+3.1% YoY) and operating profit of W72.6bn (+60.7% YoY). OP margin came March 17, 2014 in at 9.0% (the highest level in recent quarters), which beat our estimate of 7.8%. We primarily attribute the earnings beat to stronger-than-expected contributions from the firm’s Chinese operations, which we ascribe to solid sales by Hyundai Motor (HMC) and (Maintain) Buy Kia Motors in the country. We also believe Sungwoo Hitech’s European operations saw a solid earnings recovery due to pricing adjustments after a weak 1H13. Target Price (12M, W) 21,000 Pretax profit reached W83bn (+103.4% YoY), and net profit came in at W56bn (+117.7% YoY) thanks to a one-time gain of W30bn related to Sungwoo Hitech’s Share Price (03/14/14, W) 16,150 Hyundai Hysco securities holdings, which offset F/X-related losses. Expected Return 30% 2014 outlook Sungwoo Hitech is the largest supplier of automobile body parts to HMC’s and Kia OP (13P, Wbn) 213 Motors’ overseas operations (excluding the US and Brazil). Sungwoo Hitech’s main Consensus OP (13F, Wbn) 190 overseas businesses are in China, Eastern Europe (Czech Republic and Slovakia), Russia, and India. 67% of Sungwoo Hitech’s consolidated revenue comes from China (35%) and EPS Growth (13P, %) -2.4 Russia (32%), and only 29% is derived from Korean operations.
    [Show full text]
  • Hyundai Motor Company I 2009 Annual Report
    HYUNDAI MOTOR COMPANY I 2009 ANNUAL REPORT TABLE OF CONTENTS 11 I INTRO 12 I FINANCIAL HIGHLIGHTS 14 I MESSAGE FROM THE CEO 18 I TO TRUTH (Business Performance Results & Vision) 28 I TO POWER (Global Management & Marketing) 36 I HYUNDAI WITH THE WORLD 46 I TO FUTURE (Sustainable Management) 56 I HYUNDAI WITH HONESTY (Corporate Governance & Financial Statements) 148 I SUPPLEMENT 152 I FROM HYUNDAI From TAU 4.6 V8 Engine To The Ideal Ca r From The Ideal Ca r To Real Happiness From Real Happiness To Humans, Nature, Society Good technology makes good cars and happier people. Happier people go on to spread their happiness to the rest of the world. We know how even a small idea of Hyundai Motor Company can change the world in a big way. In this way, we continue to do all we can do to be even better. From TAU 4.6 V8 Engine Hyundai Motor’s new technologies To The Ideal Car Creating your dream cars From The Ideal Car Creating your dream cars To Real Happiness Making people happier From Real Happiness Making people happier To Humans, Nature, Society Creating a more humane society and a cleaner environment INTRO I FINANCIAL HIGHLIGHTS I MESSAGE FROM THE CEO I TO TRUTH I TO POWER I HYUNDAI WITH THE WORLD I TO FUTURE I HYUNDAI WITH HONESTY I SUPPLEMENT I FROM HYUNDAI >> FINANCIAL HIGHLIGHTS CONSOLIDATED PERFORMANCE SEGMENT INFORMATION Korean Won in millions U. S. Dollars in thousands Sales Vehicle Sales 2007 2008 2009 2009 Unit (‘000) (HMC) 5,000 Financial Korea For the Year : Services % 6% Other 22.5 Sales 69,601,516 79,736,351 91,463,064 78,334,245
    [Show full text]
  • Your Partner, Hyundai Engineering 2010~2011 HYUNDAI ENGINEERING SUSTAINABILITY REPORT About This Report
    Your Partner, Hyundai Engineering 2010~2011 HYUNDAI ENGINEERING SUSTAINABILITY REPORT About this Report Reporting Information This is the second sustainability report published by Hyundai Engineering, which includes its efforts for sustainable growth and performances in the economic, en- vironmental and social areas. This report will serve as the momentum for the ex- amination of the sustainable management, and Hyundai Engineering hopes this second publication becomes a communication channel for co-development with stakeholders. Reporting Scope and Period This report covers activities and performances of Hyundai Engineering’s sustain- able management for two years from January 1, 2010 to December 31, 2011. Reporting and Assurance Standards This report was prepared in accordance with the GRI (Global Reporting Initiative) G3.1 Guidelines together with the guidance on ISO 26000 and UNGC. The reliability of the contents was verified through the DNV Protocol for Verification of Sustainability Reporting V.3.0 standard by DNV, a third-party assurance institute. For more details about the result, please refer to the third-party verification report. Detailed Information on the Report This report in PDF version is available from the website. For more information or inquiries on this report, please contact: Team CSR Representative, Planning Team, Planning Office E-mail [email protected] Tel 82-2-2166-3824 Fax 82-2-2646-1503 Website www.hec.co.kr Address Hyundai 41 Tower Bldg., 917-9, Mok 1-dong, Yangcheon-gu, Seoul, Korea Philosophy A blueprint connecting the past, present and future of Hyundai Motor Group Since its establishment Hyundai Motor Group has built a history of success based on challenge and passion.
    [Show full text]
  • Hyundai Hysco Co. Ltd. • Hyundai Steel
    COMPETITION COMMISSION OF INDIA (Combination Registration No. C-2015/05/272) Fair Competition For Greater Good 05.06.2015 Notice u/s 6 (2) of the Competition Act, 2002 (‘Act’) given by: Hyundai Hysco Co. Ltd. Hyundai Steel Company Order under Section 31(1) of the Competition Act, 2002 (‘Act’) 1. On 8th May 2015, the Competition Commission of India (“Commission”) received a notice under sub-section (2) of Section 6 of the Act given by Hyundai Hysco Co. Ltd. (“Hyundai Hysco”) and Hyundai Steel Company (“Hyundai Steel”), pursuant to a merger agreement (‘Agreement’) entered into between them on 8th April 2015. Both Hyundai Hysco and Hyundai Steel are together referred to as “Parties”. 2. The Proposed combination relates to the merger of Hyundai Hysco into Hyundai Steel as a result of which Hyundai Hysco would cease to exist and Hyundai Steel will be the surviving company. It has been stated by the parties that both Hyundai Hysco and Hyundai Steel belong to the Hyundai Motor Group, South Korea. 3. The Proposed Combination falls under Section 5 (c) of the Act. 4. Hyundai Hysco, a company incorporated and listed in South Korea, is inter-alia engaged in the business of manufacture and sale of flat steel products, steel pipes, lightweight automotive parts and fuel cell systems. It is stated to be present in India through its two subsidiaries, i.e. Hysco Steel India Private Limited (“HSIPL”) and Automotive Steel Pipe India Private Limited (“ASPI”) 5. HSIPL, a company incorporated in India, is engaged in the business of supply/distribution of processed steel sheets to automobile original equipment manufacturers (OEMs), or their vendors.
    [Show full text]
  • Annual Report 2006 NULRPR 2006 REPORT ANNUAL I OOSCORPORATION MOTORS KIA Copyright ⓒ 2006 by KIA MOTORS Corp
    For Environmental protection, this catalog can be recycled Annual Report 2006 ANNUAL REPORT 2006 KIA MOTORS CORPORATION Copyright ⓒ 2006 by KIA MOTORS Corp. Produced IR-Plus 231, Yangjae-Dong, Seocho-Gu, Seoul, Korea, 137-938 TEL : 82-2-3464-1114 www.kia.co.kr www.kmcir.com 1944 2002 _Founded as ‘Kyungsung Precision _Cumulative production reached Industry’ 10 million units _China plant(Dongfeng Yueda Kia) 1973 started mass production _Began production of 1st Korean- made passenger car, ‘Brisa’ 2005 _Cumulative export reached 5 M units 1975 _Groundbreaking of China 2nd plant _First export of built-up car, ‘Brisa pickup’ 2006 _Europe plant(Kia Motors Slovakia) started mass production 1988 _Groundbreaking of US plant (Kia _ Cumulative production reached Motors Manufacturing Georgia) 1 million units 1999 _Merged by Hyundai Motor Co. Kia Motors IR Team Title Name E-mail Head of IR Dong-Won Kang [email protected] Manager Hwan-Wook Lee [email protected] Assistant Manager Yong-Hyup Ko [email protected] * This annual report contains performance results, financial data as well as the business outlook and strategies of Kia Motors Corp. Associate Sung-Yeon Hwang [email protected] The statements herein represent Management’s objective judgment, but Kia Motors’ actual results in the future could differ materially from those presented here. Please understand, therefore, the accuracy and completeness of forward-looking statements Associate Su-Yeon Chae [email protected] cannot be guaranteed. Contents 002 History 004 Chairman's Message 006 President's Message
    [Show full text]
  • YB/MYS November 1, 2019 MEMORANDUM TO
    C-580-882 Administrative Review 01/01/2017 – 12/31/2017 Public Document E&C/OVI: YB/MYS November 1, 2019 MEMORANDUM TO: Jeffrey I. Kessler Assistant Secretary for Enforcement and Compliance FROM: James Maeder Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations SUBJECT: Decision Memorandum for the Preliminary Results of the Countervailing Duty Administrative Review; 2017: Certain Cold- Rolled Steel Flat Products from the Republic of Korea I. SUMMARY The Department of Commerce (Commerce) is conducting an administrative review of the countervailing duty (CVD) order on certain cold-rolled steel flat products (cold-rolled steel) from the Republic of Korea (Korea) for the period of review (POR) January 1, 2017 through December 31, 2017. This review covers 13 producers/exporters of subject merchandise. Commerce selected Hyundai Steel Co., Ltd. (Hyundai Steel) and POSCO as mandatory respondents. We preliminarily determine that POSCO received countervailable subsidies that are above de minimis and that Hyundai Steel received countervailable subsidies that are de minimis. II. BACKGROUND On September 20, 2016, Commerce published the Order in the Federal Register.1 On September 11, 2018, Commerce published a notice of opportunity to request an administrative review of the Order.2 On October 1, 2018, the petitioners in the underlying CVD investigation3 1 See Certain Cold-Rolled Steel Flat Products from Brazil, India, and the Republic of Korea: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order (the Republic of Korea) and Countervailing Duty Orders (Brazil and India), 81 FR 64436 (September 20, 2016) (Order). 2 See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Administrative Review, 83 FR 45888 (September 11, 2018).
    [Show full text]
  • Hyundai Hysco (010520 KS) Steel
    July 25, 2012 Company Report Hyundai Hysco (010520 KS) Steel Daewoo Securities Co., Ltd. A beneficiary of the steel market slump Seung-hun Jeon +822-768-2713 2Q Review: Sales volume growth drove earnings improvement [email protected] For 2Q, Hyundai Hysco posted revenues of W2.22tr (up 5.5% QoQ) and an Aiden Lee operating profit of W122.9bn (up 6.5% QoQ) under consolidated K-IFRS. The +822-768-3297 operating profit figure was in line with theㄴ consensus (W129.8bn). We attribute [email protected] the companyÊs QoQ earnings improvements to the fact that the sales volumes of cold-rolled coils (CRC) and steel pipes jumped by 13.2% QoQ and 14.3% QoQ, respectively, on strong seasonality. In particular, despite the companyÊs automotive CRC price cuts, automotive steel margin deterioration was only minimal thanks to a drop in hot-rolled coil (HRC; a raw material) prices. Furthermore, steel pipe export Hold (Maintain) prices were high thanks to strong oil prices. Target Price (12M, W) - However, in 3Q, the companyÊs sales volume is likely to decline in light of weak Share Price (07/24/12, W) 43,300 seasonal demand. And steel pipe export margins should contract on oil price drops. Expected Return (%) 0.0 As such, we project Hyundai HyscoÊs 3Q consolidated operating profit to slide 7.3% EPS Growth (12F, %) 9.6 QoQ to W114bn. Meanwhile, Hyundai HyscoÊs 2Q net profit plunged 25.0% QoQ, as Market EPS Growth (12F, %) 16.4 F/X translation losses at overseas subsidiaries expanded on won depreciation.
    [Show full text]
  • Hyundai Steel's Challenge Os Nb Bearing Automotive Lighter Steel for EV
    Engineering the Future beyond Steel History of Growth Engineering the Future beyond Steel 1953 1978 Foundation 2001 Established as Incorporated into & Incorporated into Korean Heavy Hyundai Group Hyundai Motor Group Industry Corporation Expansion Growth as 2006 2005 2004 Renamed to Hyundai Foundation Ceremony marking the a Comprehensive Steel Company of R&D center acquisition and merger of Hanbo steel’s Dangjin plant Steelmaker Ground Breaking Ceremony for integrated steelworks 2010 To become Operation of blast furnace # 1 & 2 2013 2014 a Global Operation of Merged with Steelmaker blast furnace # 3 Hyundai Hysco Production Sites ( Integrated Steel Mill ) Engineering the Future beyond Steel From from Blast Furnace Electric Arc Furnace Hot Rolled Steel Rolled Shape Incheon(4.7 mil. ton) 7 EAFs Cold Rolled Steel Steel Reinforcement Heavy Plate HeavySpecial Machinery Steel H-beams, stainless steel Incheon Seoul Office Dangjin Integrated Steel Mill (15.6 mil. ton) Works Dangjin Works Ulsan(1.2 mil. ton) 3 BFs, 3 EAFs Yesan Works Ulsan plant Pohang Works Pipes Hot/Cold-rolled coils, Heavy plates, Rebar Suncheon Works Pohang (3.4 mil. ton) Yesan Suncheon Suncheon 5 EAFs Hot Stamping Forging(0.3 mil. ton) Cold rolled(2.0mil. ton) H-beams, rebar, rails Business Structure Engineering the Future beyond Steel Blast Furnace Electric Arc Furnace 12 MT 12 MT 24 MT 50% 50% Offshore Construction Structure Iron ore Steel Scrap High Quality Steel Sheet for Global Automotive Ships Railway Construction Automobiles Balanced Portfolio Engineering the Future
    [Show full text]
  • Leading the New Era of Steel Hyundai Motor Group
    Solutions for Oil & Gas Leading the New Era of Steel Hyundai Motor Group 6 Business Groups CORPORATE HISTORY AUTOMOBILE • Automobile • Construction STEEL • Parts (Machinery) • Steel • Logistics • Finance CONSTRUCTION Heavy Plate for Offshore Plant − Low Temp. Heavy Thickness TMCP Chairman Chung Mong-Koo, making Signing of contract for Blast Furnace Chairman Chung Mong-Koo, Began operation of Blast Furnace Volume keynote presentation to celebrate engineering and core facilities in firing Blast Furnace No.1 in 2010. No.3 at Dangjin Integrated − CTOD Guaranteed -40˚C incorporation of Hyundai Steel into 2007. Steelworks in 2013. − Corrosion Resistance • Sales of USD 250 billion Hyundai Motor Group in 2001. • 57 Affiliates • 150,000 Employees 1953. 06 Established as Korea Heavy Industry Corporation 2006. 09 Held opening ceremony for Dangjin plant’s new PARTS 1962. 11 Renamed to Incheon Heavy Industry Company, Ltd. 50,000-tonne port 1964. 09 Established Incheon Iron and Steel Company 2006. 10 Held ground-breaking ceremony for Integrated Steelworks Applications 1970. 04 Merged with Incheon Heavy Industry Company, Ltd. 2009. 08 First arrival of raw materials for Integrated Steelworks 1978. 06 Incorporated into Hyundai Group 2009. 11 Began operation of coke, sintering, and heavy plate mills • Automotive 1987. 05 Undertook initial public offering (IPO) at Integrated Steelworks • Building 1994. 12 Completed 90-tonne electric arc furnace mill and second 2010. 01 Operation of Blast Furnace No.1 • Shipbuilding reinforcing bar mill 2010. 04 Completed Integrated Steelworks FINANCE • Onshore Energy 1998. 03 Completed 120-tonne electric arc furnace mill and new 2010. 11 Operation of Blast Furnace No.2 • Offshore Energy mid-sized rolling mill 2011.
    [Show full text]
  • CFA Institute Research Challenge Hosted by CFA Society Korea Handong University
    CFA Institute Research Challenge Hosted by CFA Society Korea Handong University Special Equity Research Report CFA Institute Research Challenge A crisis is a chance: Hyundai, soar alone! Company Financial crisis has always provided opportunities to new businesses in the automobile Hyundai Motor (005380) market. In 2008, Hyundai rapidly increased its M/S by launch of new models and active marketing, leading to quantitative growth. Currently, low-growth, high oil prices and Rating downsizing are key factors in automobile industry. Hyundai attracts customers from all around the world by appealing design, high mileage, and localization. Hyundai also BUY prepares qualitative growth through increase in brand value and ASP. Asia Using the DCF and PER valuation, we set our target price for Hyundai Motor at 352,000 Korea, Republic of won and we recommend "Buy" with 64.5% upside potential. Automobile Industry & Components Investment Summary Target Price – 2013 (KRW) 352,000 Price at Nov 9 2012 (KRW) 214,000 1. Quantitative Growth Upside (%) 64.5% (1) Emerging Market – Quantitative Growth driver Mkt cap current (bn) 50,333 We predict Hyundai will make quantitative growth by capacity expansion in China and 52 week range (KRW) 200,500 ~ 272,500 KOSPI 1,890 Brazil amid increase of demand and more than 50% of sales proportion in emerging markets. Research Analyst Hand ong University (2) European Market - Remind of their success strategy in U.S in 2009 Ju Sung Hwang [email protected] While competitors in Europe are struggling, Hyundai will reenact outcome made in U.S Ung Gu [email protected] based upon launch of strategic models (i30, i40) and aggressive marketing through Ji eun Kim [email protected] relatively abundant funds.
    [Show full text]
  • PDF Download
    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS English Translation of a Report Originally Issued in Korean To the Shareholders and Board of Directors of Hyundai Motor Company: We have audited the accompanying consolidated balance sheets of Hyundai Motor Company and subsidiaries as of December 31, 2001 and 2000, and the related consolidated statements of income, changes in shareholders’ equity and cash flows for the years then ended, all expressed in Korean won. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. In 2001 and 2000, we did not audit the financial statements of certain subsidiaries, which statements represent total assets of ￦ 9,785,279 million ($7,378,990 thousand) and ￦ 7,442,179 million ($5,612,080 thousand), respectively, and total revenues of ￦ 15,819,077 million ($11,929,023 thousand) and ￦ 10,707,464 million ($8,074,402 thousand), respectively. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those entities, is based solely on the reports of other auditors. We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting standards used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
    [Show full text]