June 13, 2012

KOREA

Morning

Company News & Analysis Major Indices Close Chg Chg (%) Partron (Buy/TP: W15,500) Adjust TP KOSPI 1,854.74 -12.30 -0.66 2Q Earnings likely to hit a new high KOSPI 200 246.43 -1.87 -0.75 KOSDAQ 471.97 2.38 0.51

Turnover ('000 shares, Wbn) Volume Value KOSPI 417,375 3,588 KOSPI 200 55,369 2,639 KOSDAQ 579,923 1,737

Market Cap (Wbn) Value KOSPI 1,067,878 KOSDAQ 99,696

KOSPI Turnover (Wbn) Buy Sell Net Foreign 819 869 -50 Institutional 729 639 90 Retail 1,960 1,917 42

KOSDAQ Turnover (Wbn) Buy Sell Net Foreign 60 49 11 Institutional 52 53 -1 Retail 1,624 1,630 -6

Program Buy / Sell (Wbn) Buy Sell Net KOSPI 605 639 -34 KOSDAQ 11 8 3

Advances & Declines Advances Declines Unchanged KOSPI 351 441 105 KOSDAQ 455 449 94

KOSPI Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value Electronics 1,255,000 -13,000 221 Hynix 23,550 500 184 KODEX LEVERAGE 11,570 -185 164 KODEX INVERSE 7,900 70 133 NCsoft 259,000 4,000 106

KOSDAQ Top 5 Most Active Stocks by Value (Wbn) Price (W) Chg (W) Value AZTECHWB 6,110 -300 61 Daum Communications 99,500 4,700 54 Openbase 1,820 -120 54 Makus 3,240 -140 51 Celltrion 32,100 350 36 Note: As of June 12, 2012

This document is a summary of a report prepared by Daewoo Securities Co., Ltd. („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. 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. 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.

Company June 13, 2012

Telecom Equipment Partron (091700 KQ) Daewoo Securities Co., Ltd. Wonjae Park 2Q Earnings likely to hit a new high +822-768-3372 [email protected] TP adjusted to W15,500 due to bonus issue; Maintain Buy call Young Ryu +822-768-4138 We maintain our Buy call on Partron. And, taking into account the companyÊs [email protected] upcoming 0.3:1 bonus issue (announced on May 23rd), we adjust our 12-month th target price to W15,500. Given that the record date of the bonus issue is June 14 , th the ex-rights date will be June 13 . We derived our target price by applying a P/E of 11.2x to our 2012 EPS estimate of W1,385. Our target price implies an upside of 42.2% from the adjusted share price (W10,900). Buy (Maintain) Target Price (12M, W) 15,500 2Q Preview: Earnings likely to hit a new high Standard Price (06/13/12, W) 10,900 For 2Q, we project PartronÊs earnings to hit a historic high for the second Expected Return (%) 42.2 EPS Growth (12F, %) 66.4 consecutive quarter. We forecast 2Q revenues and operating profit to come in at Market EPS Growth (12F, %) 19.6 W180.5bn (up 131.7% YoY; up 38.0% QoQ) and W17.3bn (up 92.1% YoY; up P/E (12F, x) 7.8 34.0% QoQ), respectively. Market P/E (12F, x) 9.3 KOSDAQ 471.97 These stellar results should be attributable to: 1) a surge in Galaxy Note sales Market Cap (Wbn) 421 volume and 2) PartronÊs full-swing supply of parts for use in the Galaxy S III (since Shares Outstanding (mn) 39 May). In particular, given that pre-orders for the Galaxy S III are exceeding those of Avg Trading Volume (60D, '000) 393 its predecessors (i.e., Galaxy S, Galaxy S II), the outlook for this new device looks Avg Trading Value (60D, Wbn) 5 rosy. Accordingly, Partron is seeing an increase in orders for related parts. As such, Dividend Yield (12F, %) 1.8 we have raised our estimates for the companyÊs 2Q revenues and operating profit Free Float (%) 73.8 52-Week Low (W) 6,469 by 9.4% and 11.0%, respectively. 52-Week High (W) 14,692 Time to focus on rapid earnings growth Beta (12M, Daily Rate of Return) 1.2 Price Return Volatility (12M Daily, %, SD) 3.7 Partron has displayed the fastest earnings growth in the handset parts segment. An Foreign Ownership (%) 10.6 increasing number of the companyÊs parts are being used in the production of Major Shareholder(s) Samsung ElectronicsÊ (SEC; a top customer) flagship products. Even though the Jonggu Kim et al. (25.36%) NPS (5.19%) companyÊs dependence on SEC is heavy, given that the smartphone market is dominated by SEC and Apple, this dependence seems unavoidable. We believe that Price Performance investors need to focus on the fact that Partron is a major beneficiary of the growth (%) 1M 6M 12M of SECÊs smartphone business. Furthermore, we believe that downside risks to Absolute 0.4 -11.6 30.6 margins are limited, since: 1) PartronÊs overall OP margin has already fallen to the Relative 3.6 -9.2 40.0 OP margin level of its camera module unit (whose earnings contributions have Key Business surged), and 2) strong top-line growth should lead to fixed cost savings. Partron manufactures and sells handset components (e.g., camera modules, antennae, GPS, passive parts, etc.)

Share price FY Revenues OP OP Margin NP EPS EBITDA FCF ROE P/E P/B EV/EBITDA 160 KOSDAQ (Wbn) (Wbn) (%) (Wbn) (Won) (Wbn) (Wbn) (%) (X) (X) (X) 140 12/10 233 38 16.3 32 1,071 39 6 29.8 13.7 3.6 10.9 120 12/11 360 38 10.4 32 1,081 41 -15 23.3 13.4 2.9 11.3 100 80 12/12F 671 65 9.7 54 1,385 66 20 30.3 7.8 2.1 7.0 60 12/13F 742 70 9.5 60 1,540 76 36 26.3 7.1 1.7 6.3 40 12/14F 856 83 9.7 69 1,777 89 34 24.4 6.1 1.4 5.4 6/11 10/11 2/12 6/12 Notes: All figures are based on non-consolidated K-IFRS; NP refers to net profit attributable to controlling interests Source: Company data, KDB Daewoo Securities Research estimates

This document is a summary of a report prepared by Daewoo Securities Co., Ltd. („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. 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. 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.

Market Data June 13, 2012

※All data as of close June 12, 2012, unless otherwise noted.

Other Major Indices Economic Indicators Close Net Chg 1D (%) YTD (%) Close 1D ago 1M ago 1Y ago MSCI Korea* 372.21 9.76 2.69 3.91 USD/KRW 1,167.00 1,173.00 1,142.50 1,083.10 KOSPI 1,854.74 -12.30 -0.66 1.55 JPY100/KRW 1,471.91 1,475.47 1,430.54 1,348.57 KOSDAQ 471.97 2.38 0.51 -6.87 EUR/KRW 1,455.60 1,483.26 1,477.48 1,571.90 Dow Jones* 12,411.23 -142.97 -1.14 1.59 3Y Treasury 3.29 3.32 3.37 3.65 S&P 500* 1,308.93 -16.73 -1.26 2.50 3Y Corporate 3.87 3.91 4.00 4.39 NASDAQ* 2,809.73 -48.69 -1.70 6.08 DDR2 1Gb* 1.28 1.27 1.27 1.13 Philadelphia Semicon* 365.69 -7.04 -1.89 -0.79 NAND 16Gb* 2.13 2.08 2.12 2.93 FTSE 100* 5,432.37 -2.71 -0.05 -4.69 Oil (Dubai)* 98.76 95.97 108.19 112.05 Nikkei 225 8,536.72 -88.18 -1.02 -0.27 Gold* 1,595.50 1,590.10 1,584.00 1,528.60 Hang Seng* 18,953.63 451.29 2.44 0.40 Customer deposits (Wbn)* 16,996 16,594 17,437 15,729 Taiwan (Weighted) 7,072.08 -48.15 -0.68 1.72 Equity type BC (Wbn)(Jun. 8) 98,207 98,280 97,124 99,845 Note: * as of June 11, 2012 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 NCsoft 22.21 LG Electronics 29.99 Hynix 41.59 Honam Petrochemical 23.32 14.30 LG Display 14.58 SEMCO 19.59 Hyundai Mobis 18.01 KODEX 200 9.78 Samsung F&M Insurance 13.71 Kumho Petrochemical 13.25 KODEX 200 10.18 LG Chem 9.12 Honam Petrochemical 12.97 Korea Zinc 13.08 7.28 Motors 7.27 9.87 LG Chem 11.38 Samsung Corp. 6.76 KB Financial Group 6.36 KODEX LEVERAGE 9.75 HYUNDAI WIA 9.38 Samsung F&M Insurance 6.43 OCI 6.31 8.20 Samsung Electronics 8.93 CJ Cheiljedang 4.02 Samsung Corp. 5.14 Hyundai Eng. & Cosnt. 7.27 LG Display 8.17 3.97 NHN 5.05 Dongbu Insurance 7.20 SK Corp. 7.81 Daelim Industrial 3.87 LG Innotek 4.90 SEMCO 7.17 KODEX LEVERAGE 7.11 OCI 3.74 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 Daum Communications 2.55 NEOWIZ Games 2.05 Daum Communications 2.36 Kortek 2.93 Celltrion 2.47 AZTECHWB 0.95 Partrion 1.09 CJ O Shopping 1.68 Gamevil 2.20 RFTech 0.85 YG Entertainment 0.97 Seoul Semiconductor 1.06 Sung Woo HiTech 0.98 SM 0.67 Paradise 0.93 STS Semicon&Telecom 0.89 CJ O Shopping 0.85 OCI Materials 0.66 Genic 0.82 Eugene Technology 0.85 EG 0.66 HANLA IMS 0.60 NEPES 0.81 Sung Kwang Bend 0.69 Maeil Dairy Industry 0.66 SEEGENE 0.48 Gamevil 0.79 Kornic Systems 0.68 CU MEDICAL 0.61 Nexen Tech 0.47 Pyeong Hwa Automotive 0.79 JCE 0.66 Seoul Semiconductor 0.57 Genic 0.40 Com2us 0.68 HARIM 0.47 KREIT 0.51 WISEPOWER CO.,LTD 0.33 Duk San Hi Metal 0.67 Toptec 0.46 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 1,255,000 -13,000 184,861 Celltrion 32,100 350 3,752 Hyundai Motor 238,500 -1,500 52,536 Daum Communications 99,500 4,700 1,342 POSCO 368,500 -7,000 32,128 Seoul Semiconductor 21,850 0 1,274 Kia Motors 78,100 200 31,659 Paradise 13,700 800 1,246 Hyundai Mobis 267,500 -1,000 26,039 AHNLAB 114,400 -800 1,146 269,000 -3,000 20,444 CJ O Shopping 166,700 -2,400 1,034 96,100 100 19,220 CJ E&M 26,650 50 1,011 LG Chem 287,000 -1,000 19,020 SFA Engineering 54,700 0 982 39,250 -650 18,612 POSCO ICT 6,820 -60 935 Samsung Electronics (P) 740,000 0 16,897 Dongsuh 30,750 100 916 Source: Korea Exchange