June 1, 2020 One-Asia Morning Focus Today’s reports SM Entertainment (041510 KQ/Trading Buy/TP: W31,000) Downgrade rating/Lower TP – External conditions are key JYP Entertainment (035900 KQ/Trading Buy/TP: W27,000) Downgrade rating/Lower TP – External conditions are key Hanon Systems (018880 KS/Buy/TP: W12,500) Lower TP – Positive signs emerging in the US and Europe Global performance monitor: Two-day change (%) Asia xJPN World EM World DM Korea Japan China Taiwan HK India Indonesia Singapore Thailand Index 0.52 0.35 0.54 0.13 -0.99 0.73 -0.08 -1.69 1.38 2.99 -0.12 1.11 Growth 1.04 0.93 1.07 -0.12 -0.33 1.13 -0.47 -1.62 1.79 0.84 0.21 1.44 Value 0.21 0.58 -0.59 0.44 -1.72 0.17 0.33 -1.78 0.99 5.59 -0.46 0.75 Semicon. & equip. -1.10 -1.09 0.32 -2.78 -2.41 0.68 -0.47 -2.07 N/A N/A N/A N/A Tech hardware & equip. 0.38 0.39 0.46 0.42 -1.85 -0.23 0.52 1.63 3.37 N/A -0.36 N/A Comm. & prof. services 1.33 1.33 1.73 6.12 -1.77 3.06 -0.95 N/A 3.09 1.51 N/A N/A Software & services 0.50 0.31 1.71 1.96 1.34 1.50 3.05 -3.28 -0.36 N/A 4.68 N/A Media & entertainment -1.65 -1.44 -0.42 -3.45 -0.55 2.66 -2.96 -1.79 3.18 N/A -12.13 N/A Consumer goods 0.95 1.14 0.19 2.98 -0.75 1.88 -0.33 -6.86 0.07 1.96 N/A 1.75 Consumer services 0.75 1.48 -1.58 -1.74 -1.95 0.87 2.07 -1.57 -0.57 4.93 1.52 -2.98 F&B & tobacco 1.80 0.76 0.95 1.13 0.09 1.54 1.50 0.41 3.60 4.70 1.24 1.86 Food & staples retailing 1.66 0.32 1.23 4.02 -0.58 3.79 -0.85 -0.94 -1.52 N/A 3.52 1.83 Retailing 3.50 1.65 1.22 0.95 -0.03 3.66 1.89 -1.63 2.13 5.27 2.76 2.79 HH & personal products 1.81 1.13 2.55 -0.67 -2.06 2.41 0.77 N/A 3.23 -2.59 N/A N/A Pharma & life sciences 0.36 0.32 2.79 1.37 3.71 1.64 0.64 2.87 3.45 5.34 N/A N/A Autos & parts 1.53 1.50 -0.75 3.09 -3.46 -0.90 -2.24 -0.45 2.11 5.98 N/A N/A Transportation 1.03 0.57 -0.47 2.33 -1.11 1.46 -1.63 -1.57 -0.08 -6.01 -2.09 0.91 Capital goods -0.77 -0.15 -0.90 0.69 -2.30 0.00 -4.42 -2.52 1.77 N/A -0.71 N/A Materials 0.56 0.94 1.16 -0.50 -2.04 0.19 -0.12 N/A 2.29 3.19 N/A 2.08 Real estate 0.16 0.20 0.25 1.23 0.28 -1.31 -0.58 -1.67 4.77 -2.92 2.62 -0.82 Energy 0.45 0.15 -1.85 -0.32 -1.63 -0.68 -0.23 -9.13 0.81 4.09 0.22 -0.74 Banks 1.54 0.80 -2.56 1.18 -2.16 -0.69 0.58 -2.50 1.50 3.08 -0.98 -0.25 Diversified financials -0.64 -1.12 -0.75 -2.26 -1.11 -1.65 -0.83 -0.94 0.82 N/A 1.82 4.05 Telecom services -0.53 -0.23 0.91 1.68 -0.43 -0.48 -0.12 -4.04 -1.39 1.71 -0.58 1.96 Utilities 0.95 1.10 3.08 1.21 -0.79 -0.45 2.16 -0.22 1.68 2.76 N/A 1.26 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) Hartalega MY Healthcare 9,764 12.8 63.2 96.7 130.9 135.6 324.4 Internet of Things (Global X) PT Charoen Pokphand ID Consumer staples 6,482 12.0 27.8 -0.5 -17.1 17.9 75.8 Digitalisation (iShares) BDO Unibank PH Financials 8,693 11.3 -1.0 -27.1 -33.3 -24.4 -17.3 FinTech (Global X) Pinduoduo ADR CN Consumer disc. 80,085 10.8 41.0 86.9 86.0 244.3 NA Genomics & Biotech (Global X) Petronas Gas MY Utilities 8,648 10.1 22.0 13.0 21.4 9.0 13.4 Health & Wellness (Global X) Vipshop Holdings ADR CN Consumer disc. 11,660 10.0 8.9 35.2 35.7 130.0 40.2 Ageing Population (iShares) Petronas Dagangan MY Energy 5,365 9.7 14.2 1.7 1.2 -8.7 3.8 EM Consum Growth (iShares) Bottom seven performers Clean Energy (iShares) Geely Automobile H. HK Consumer disc. 12,599 -9.5 -10.7 -21.5 -25.3 -12.4 -11.4 Water Resources (Invesco) NAVER KR Commun. services 29,976 -5.9 12.6 27.4 25.6 95.3 21.7 Agribusiness (iShares) Shanghai Lujiazui Fin. CN Real estate 5,449 -5.4 -8.0 -3.3 -16.3 -34.1 -33.4 Global Infrastructure (iShares) Tenaga Nasional MY Utilities 14,729 -5.2 -9.0 -4.4 -12.9 -7.5 -5.6 ESG US Leaders (iShares) Guangzhou Auto. HK Consumer disc. 11,788 -3.8 -8.9 -26.3 -23.0 -10.3 -21.7 2D 10D Samsung Fire& Marine KR Financials 7,312 -3.6 -5.7 -9.6 -22.5 -33.0 -36.8 (6) (3) 0 3 6 9 12 15 18 Public Bank MY Financials 13,091 -3.2 -11.5 -14.9 -26.5 -37.7 -20.9 This publication contains summaries of reports prepared by Mirae Asset Daewoo Co., Ltd. and/or its non-US affiliates (“Mirae Asset Daewoo”). Please review the compliance notices contained in the original reports. Information and opinions contained herein have been compiled in good faith from sources deemed to be reliable. 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June 1, 2020 One-Asia Morning Focus MSCI valuations (DM, EM, Asia ex-JP) 14 12M forward P/E (x) 20 2.0 12M trailing P/B (x) 2.8 19 2.6 13 18 1.8 17 2.4 12 1.6 16 2.2 15 11 1.4 14 2.0 10 13 1.2 1.8 12 9 11 1.0 1.6 Jun-19 Sep-19 Dec-19 Mar-20 Jun-19 Sep-19 Dec-19 Mar-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 12 1D 3M YTD 1,238.5 -0.08 1.97 7.09 11 19 KRW CNY 7.1 -0.19 2.23 2.58 10 16 JPY 107.7 0.10 -0.12 -0.87 9 IDR 14,610.0 -0.86 1.83 5.24 13 8 HKD 7.8 -0.03 -0.54 -0.52 7 TWD 30.0 0.01 -0.84 0.16 10 May-19 Aug-19 Nov-19 Feb-20 May-19 Aug-19 Nov-19 Feb-20 SGD 1.4 -0.22 1.27 5.11 THB 31.8 -0.15 0.81 6.20 Indonesia India 17 20 INR 75.6 -0.18 4.78 5.94 PHP 50.6 -0.18 -0.70 -0.05 15 18 MYR 4.3 -0.22 3.14 6.28 VND 23,281.5 -0.04 0.17 0.47 13 16 11 14 Commodities Latest Change (%) 9 12 close May-19 Aug-19 Nov-19 Feb-20 1D 3M YTD May-19 Aug-19 Nov-19 Feb-20 Crude oil (US$/bbl) 37.7 6.9 -40.8 -44.4 Hong Kong China Thermal coal (US$/tonne) 58.6 0.0 -11.5 -12.6 17 13 Iron ore (US$/tonne) 92.5 0.5 -2.4 1.1 Copper (US$/tonne) 5,332.5 1.0 -13.4 -13.4 15 12 Nickel (US$/tonne) 12,120.0 -0.1 -11.9 -13.4 Tin (US$/tonne) 15,602.0 0.1 -11.7 -7.4 13 11 Gold (US$/ozt) 1,736.9 1.4 11.6 14.3 Palm oil (INR/tonne) 726.3 0.3 -14.8 -16.6 11 10 Soybean oil (c/lb) 25.9 -0.0 -20.8 -24.7 May-19 Aug-19 Nov-19 Feb-20 May-19 Aug-19 Nov-19 Feb-20 Corn (US$/bu) 3.2 -0.5 -18.4 -18.9 Wheat (US$/bu) 5.2 1.2 -10.4 -6.8 Source: FactSet, Mirae Asset Daewoo Research (updated on 5/31/20 at 23:00 KST) SM Entertainment (041510 KQ) Despite best efforts, much will depend on external conditions Entertainment 1Q20 review: COVID-19 weighs on subsidiary earnings For 1Q20, SM Entertainment reported consolidated revenue of W144.7bn (+10.7% YoY; Results Comment all growth figures hereafter are YoY) and operating profit of W1.7bn (-40.2%).