One-Asia Morning Focus
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November 6, 2020 One-Asia Morning Focus Today’s reports Cosmax (192820 KS/Buy/TP: W145,000) Initiate coverage – Beneficiary of fast-growing Chinese market Kakao (035720 KS/Buy/TP: W460,000) – Another earnings beat; increasing expectations on 4Q20 Korean Air (003490 KS/Hold/TP: W22,000) Downgrade rating – Cargo is the only earnings driver Hyundai Department Store (069960 KS/Buy/TP: W90,000) – Meaningful recovery expected in 4Q20 Studio Dragon (253450 KQ/Buy/TP: W107,000) – OP margin jumps 7%p on China effects CJ ENM (035760 KQ/Buy/TP: W185,000) – Media margins improve J Contentree (036420 KS/Trading Buy/TP: W34,000) – A mixed performance Cafe24 (042000 KQ/Hold/TP: W58,000) – Still lacking growth potential Global performance monitor: Two-day change (%) Asia xJPN World EM World DM Korea Japan China Taiwan HK India Indonesia Singapore Thailand Index 1.60 1.85 4.07 3.53 3.63 1.06 2.04 3.25 2.52 4.47 4.96 4.67 Growth 1.78 1.08 6.19 4.34 5.52 0.00 2.67 3.63 1.70 6.04 4.90 5.89 Value 1.55 1.82 1.79 2.65 1.56 2.59 1.21 2.74 3.26 3.06 5.03 3.54 Semicon. & equip. 2.98 2.97 4.91 6.34 5.88 2.22 2.85 4.63 N/A N/A N/A N/A Tech hardware & equip. 2.24 2.24 4.36 3.28 4.57 4.48 1.00 4.00 -2.07 N/A 1.93 N/A Comm. & prof. services 4.26 4.26 5.42 3.45 5.42 0.36 1.55 N/A 3.11 8.89 N/A N/A Software & services 2.06 2.29 6.27 2.44 8.71 1.96 1.79 2.01 3.23 N/A 1.96 N/A Media & entertainment 0.09 0.34 5.33 6.97 2.49 1.90 2.56 -1.62 3.18 N/A N/A N/A Consumer goods 2.47 2.76 4.00 3.08 4.16 5.09 1.18 N/A 4.23 3.47 N/A 7.35 Consumer services 4.88 5.42 3.76 1.23 4.95 2.92 1.58 3.18 3.19 1.78 3.71 2.83 F&B & tobacco 1.54 2.01 2.62 3.35 2.72 3.09 0.87 2.18 2.85 4.07 1.12 4.99 Food & staples retailing 1.46 3.29 1.97 1.68 1.55 3.99 -0.83 3.13 3.31 N/A 3.11 8.86 Retailing -0.88 -0.33 4.13 1.37 3.13 2.07 0.78 0.01 0.47 4.34 1.15 0.78 HH & personal products 0.17 0.68 2.67 1.59 3.90 4.85 2.28 N/A 1.74 2.40 N/A N/A Pharma & life sciences 3.53 3.68 6.01 6.41 10.49 1.78 1.96 1.77 2.90 3.14 N/A N/A Autos & parts 4.12 4.10 3.30 3.20 1.22 11.90 3.86 -1.60 1.87 1.43 N/A N/A Transportation 2.39 3.55 2.93 2.16 2.27 3.49 1.26 1.24 3.54 N/A 2.13 6.29 Capital goods 1.76 2.33 2.33 2.47 2.97 4.45 2.06 1.54 3.26 N/A 4.07 1.96 Materials 1.59 2.29 1.69 3.49 2.30 4.18 1.05 N/A 2.56 5.41 N/A 4.10 Real estate 2.80 2.11 2.52 0.77 3.95 3.60 0.15 3.62 1.32 N/A 5.44 4.55 Energy 1.99 3.57 1.79 3.81 2.41 1.77 1.69 N/A 5.34 1.20 2.27 3.99 Banks 1.59 1.81 1.21 0.11 0.18 2.31 0.94 2.70 -0.39 4.62 5.31 0.41 Diversified financials 0.78 3.27 3.54 2.14 3.49 1.81 1.95 -0.81 5.77 N/A 3.85 1.80 Telecom services 0.49 0.76 0.40 2.64 2.25 2.08 0.74 0.23 0.36 8.76 7.53 4.95 Utilities 1.34 2.16 1.35 1.13 1.07 2.30 0.71 1.60 1.19 1.90 N/A 7.70 Key thematic ETFs: Change (%) Market movers Mkt cap US dollar total returns (%) Robotics & AI (Global X) Name Ctry Sector (US$mn) 1D 1M 3M 6M 1Y 3Y Cloud Computing (Global X) Top seven performers Lithium & Battery (Global X) Global Power Synergy TH Utilities 5,479 13.6 7.0 -11.7 -7.0 -29.8 28.9 Internet of Things (Global X) Hanwha Solutions KR Materials 6,875 13.2 17.3 74.8 278.6 196.8 51.6 Digitalisation (iShares) Silergy TW Information tech. 6,912 10.2 15.0 18.5 91.2 160.5 255.0 FinTech (Global X) Energy Absolute TH Utilities 5,254 9.7 11.9 -11.8 17.0 -0.2 9.9 Genomics & Biotech (Global X) Telekomunikasi ID Commun. services 19,082 8.7 7.6 -7.2 -8.1 -32.7 -27.2 Health & Wellness (Global X) Gulf Energy TH Utilities 11,874 8.7 4.1 -7.4 -14.4 -11.1 NA Ageing Population (iShares) Seegene KR Healthcare 6,634 8.3 5.2 8.1 249.7 1,228. 905.6 EM Consum Growth (iShares) Bottom seven performers Clean Energy (iShares) United Microelectronics TW Information tech. 13,307 -3.1 7.7 26.3 120.0 135.6 138.5 Water Resources (Invesco) Meralco PH Utilities 6,905 -1.5 7.9 18.5 23.0 -5.5 25.2 Agribusiness (iShares) Advantech TW Information tech. 7,789 -1.3 1.7 -4.4 23.7 11.3 78.0 Global Infrastructure (iShares) Realtek Semiconductor TW Information tech. 6,321 -1.1 -2.9 -6.5 57.1 69.3 245.1 ESG US Leaders (iShares) Delta Electronics TW Information tech. 17,260 -0.9 1.2 -4.6 46.9 47.4 57.3 2D 10D GlobalWafers TW Information tech. 6,600 -0.7 12.4 4.1 22.3 26.5 61.9 (6)(3)0369121518 Novatek TW Information tech. 5,761 -0.7 5.1 -8.4 55.2 36.3 186.5 This publication contains summaries of reports prepared by Mirae Asset Daewoo Co., Ltd. and/or its non-US affiliates (“Mirae Asset Daewoo”). 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November 6, 2020 One-Asia Morning Focus MSCI valuations (DM, EM, Asia ex-JP) 17 12M forward P/E (x) 22 2.0 12M trailing P/B (x) 2.8 21 16 20 2.6 1.8 15 19 2.4 14 18 1.6 17 13 2.2 16 1.4 12 15 2.0 11 14 1.2 13 1.8 10 12 9 11 1.0 1.6 Nov-19 Feb-20 May-20 Aug-20 Nov-19 Feb-20 May-20 Aug-20 MSCI Asia ex-JP (L) MSCI World EM (L) MSCI World DM (R) MSCI Asia ex-JP (L) MSCI World EM (L) MSCI World DM (R) MSCI 12M forward P/E (x) Currencies (vs. USD) Value Change(%) Korea Vietnam 1D 3M YTD 13 19 KRW 1,128.2 -0.84 -5.11 -2.45 CNY 6.6 -1.09 -4.50 -4.68 11 16 JPY 103.7 -0.79 -1.81 -4.62 IDR 14,380.0 -1.27 -1.17 3.58 9 13 HKD 7.8 0.00 0.07 -0.46 TWD 28.5 -0.40 -2.83 -4.86 7 10 Nov-19 Feb-20 May-20 Aug-20 Nov-19 Feb-20 May-20 Aug-20 SGD 1.4 -0.54 -1.26 0.46 THB 30.9 -0.83 -0.39 3.09 Indonesia India 19 24 INR 74.4 -0.45 -0.72 4.23 22 PHP 48.3 -0.18 -1.55 -4.61 17 20 MYR 4.2 -0.42 -1.05 1.47 15 18 VND 23,176.0 -0.01 0.00 0.02 13 16 Commodities 11 14 Latest Change (%) 9 12 Nov-19 Feb-20 May-20 Aug-20 Nov-19 Feb-20 May-20 Aug-20 close 1D 3M YTD Crude oil (US$/bbl) 41.2 3.9 -0.8 -39.2 Hong Kong China Thermal coal (US$/tonne) 58.4 0.0 11.3 -12.8 19 16 Iron ore (US$/tonne) 116.8 0.3 13.4 27.7 15 17 Copper (US$/tonne) 6,748.0 -0.6 13.3 9.6 14 Nickel (US$/tonne) 15,391.0 0.2 21.3 9.9 15 13 Tin (US$/tonne) 18,120.0 0.5 6.7 7.5 12 Gold (US$/ozt) 1,894.6 -0.7 6.8 24.7 13 11 Palm oil (INR/tonne) 907.1 1.6 16.3 4.2 11 10 Soybean oil (c/lb) 35.1 1.4 33.8 2.4 Nov-19 Feb-20 May-20 Aug-20 Nov-19 Feb-20 May-20 Aug-20 Corn (US$/bu) 4.1 1.0 25.7 2.5 Wheat (US$/bu) 6.1 -0.3 24.8 8.5 Source: FactSet, Mirae Asset Daewoo Research (updated on 11/05/20 at 23:00 KST) [Korea] Cosmetics November 6, 2020 Cosmax Buy (192820 KS) (Initiate) Beneficiary of fast-growing Chinese market TP: W145,000 Upside: 35.5% Mirae Asset Daewoo Co., Ltd.