May 13, 2020 One-Asia Morning Focus Today’s reports NCsoft (036570 KS/Buy/TP: W970,000) Raise TP – Our top global gaming pick for 2020-21; Raise TP Hanwha Aerospace (012450 KS/Buy/TP: W33,000) Lower TP – Stability of defense business to stand out Shinsegae (004170 KS/Buy/TP: W360,000) – 1Q20 review: More leveraged to tailwinds than headwinds Global performance monitor: Two-day change (%) Asia xJPN World EM World DM Korea Japan China Taiwan HK India Indonesia Singapore Thailand Index 0.86 0.47 -0.05 -1.80 0.38 1.23 -0.40 1.24 -0.04 -0.25 0.03 3.12 Growth 0.65 1.12 0.64 -0.76 0.48 1.74 -0.92 1.59 -0.29 0.79 0.21 3.62 Value N/A 0.47 -0.72 -3.07 0.27 0.56 0.15 0.85 0.20 -1.54 -0.16 2.58 Semicon. & equip. 0.85 0.87 0.48 0.41 1.87 0.30 -0.90 -1.98 N/A N/A N/A N/A Tech hardware & equip. 0.24 0.24 0.75 -2.15 0.80 0.12 0.09 1.64 6.94 N/A -1.06 N/A Comm. & prof. services 0.07 0.07 -0.24 1.23 3.42 -0.82 -0.22 N/A -3.99 -1.02 N/A N/A Software & services 0.86 0.74 0.54 -0.41 0.56 -1.03 -0.32 0.94 2.21 N/A -2.18 N/A Media & entertainment 2.78 2.73 0.70 3.97 0.91 0.07 2.06 -0.12 -2.24 N/A -2.24 N/A Consumer goods 1.15 1.00 -0.53 -0.98 1.03 2.15 -0.85 1.09 1.31 1.67 N/A 3.59 Consumer services 0.12 -0.62 -1.17 -4.81 2.26 -1.03 3.82 1.46 -0.03 2.74 0.35 2.49 F&B & tobacco 0.21 -0.03 -0.10 -0.73 1.21 -0.03 -1.92 1.85 1.87 1.94 9.76 5.10 Food & staples retailing 1.17 0.02 0.47 -2.04 1.31 0.72 -0.39 1.25 2.19 N/A 0.99 2.85 Retailing 1.51 1.38 0.95 -4.43 0.39 -1.88 0.13 -0.58 -0.88 -0.50 -0.89 3.91 HH & personal products -0.91 -1.17 -0.17 -2.21 0.99 -0.62 -0.36 N/A -2.55 1.79 N/A N/A Pharma & life sciences 0.40 0.18 1.37 0.22 -0.96 0.24 0.22 4.11 -0.89 -0.84 N/A N/A Autos & parts 0.88 0.89 0.26 -3.21 0.61 -0.97 -1.54 3.81 5.17 2.38 N/A N/A Transportation 1.17 0.37 0.36 -3.34 2.01 -0.12 0.57 0.25 3.68 1.34 -1.65 2.70 Capital goods 0.06 0.17 -0.93 -3.32 0.24 -0.32 -0.67 0.07 -0.33 N/A 0.08 N/A Materials 0.44 -0.39 -1.20 -4.66 0.90 -0.86 -0.30 N/A 2.06 6.10 N/A 3.78 Real estate 1.20 0.98 -0.37 -1.10 -0.10 -1.31 1.34 1.04 5.28 -4.06 -0.76 5.02 Energy 0.64 -0.16 -0.90 -3.93 -0.21 -0.25 -2.10 -1.29 -4.47 -1.99 -0.30 3.47 Banks 0.28 -0.27 -1.57 -4.45 -1.41 -0.97 0.35 1.58 -1.66 -2.01 -0.22 1.70 Diversified financials 1.06 -1.25 -0.68 -4.34 -0.81 -1.24 1.47 2.98 -0.14 N/A 0.92 5.84 Telecom services 0.44 0.31 -0.86 2.74 -0.63 -0.96 -0.25 1.19 5.81 -1.16 0.43 0.08 Utilities 0.52 0.39 -0.54 -4.16 0.93 -0.02 0.96 0.32 2.22 -0.35 N/A 4.35 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) Wilmar International SG Consumer staples 17,278 8.0 11.5 -9.9 -4.5 5.6 8.0 Internet of Things (Global X) NCsoft KR Commun. services 13,389 6.5 14.4 10.7 33.9 44.4 103.5 Digitalisation (iShares) NTPC IN Utilities 12,002 6.0 6.3 -25.4 -26.2 -31.5 -35.0 FinTech (Global X) Netmarble KR Commun. services 7,390 5.1 10.6 7.1 7.9 -22.6 -39.9 Genomics & Biotech (Global X) InterGlobe Aviation IN Industrials 5,131 5.0 -2.1 -34.0 -35.6 -39.2 -18.7 Health & Wellness (Global X) Bharti Airtel IN Commun. services 40,432 4.7 15.6 -2.0 42.5 59.8 45.8 Ageing Population (iShares) ITC Ltd IN Consumer staples 26,858 4.4 -10.1 -26.8 -39.8 -47.7 -46.0 EM Consum Growth (iShares) Bottom seven performers Clean Energy (iShares) Reliance Industries IN Energy 124,265 -5.8 22.7 -4.9 -1.9 10.2 90.3 Water Resources (Invesco) Bank Mandiri ID Financials 12,555 -5.2 -8.5 -50.6 -43.6 -44.2 -33.7 Agribusiness (iShares) Bank Rakyat Indonesia ID Financials 20,606 -4.9 -4.9 -47.6 -38.9 -37.5 -12.0 Global Infrastructure (iShares) Ayala Land PH Real estate 9,301 -4.5 -0.1 -26.2 -30.6 -29.0 -16.4 ESG US Leaders (iShares) POSCO KR Materials 12,101 -3.8 -4.9 -25.6 -25.8 -29.2 -36.1 2D 10D Hana Financial Group KR Financials 6,226 -3.6 0.0 -31.1 -30.4 -29.0 -36.4 (9) (6) (3) 0 3 6 9 12 SM Prime Holdings PH Real estate 16,991 -3.4 1.9 -29.7 -25.2 -20.3 -6.4 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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May 13, 2020 One-Asia Morning Focus MSCI valuations (DM, EM, Asia ex-JP) 14 12M forward P/E (x) 18 2.0 12M trailing P/B (x) 2.8 17 2.6 13 1.8 16 2.4 12 15 1.6 2.2 14 11 1.4 2.0 13 10 1.2 12 1.8 9 11 1.0 1.6 May-19 Aug-19 Nov-19 Feb-20 May-19 Aug-19 Nov-19 Feb-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 1,224.9 0.36 3.84 5.91 11 19 KRW CNY 7.1 0.03 1.67 1.77 10 16 JPY 107.2 -0.26 -2.53 -1.33 9 IDR 14,905.0 -0.02 9.11 7.37 8 13 HKD 7.8 0.01 -0.26 -0.53 7 TWD 29.9 0.20 -0.36 -0.33 10 May-19 Aug-19 Nov-19 Feb-20 May-19 Aug-19 Nov-19 Feb-20 SGD 1.4 -0.11 2.12 5.29 THB 32.1 -0.16 3.12 7.25 Indonesia India 17 20 INR 75.5 -0.29 5.86 5.80 PHP 50.3 0.00 -0.51 -0.66 15 18 MYR 4.3 -0.12 4.70 5.88 VND 23,334.0 0.04 0.43 0.70 13 16 11 14 Commodities Latest Change (%) 9 12 May-19 Aug-19 Nov-19 Feb-20 close 1D 3M YTD May-19 Aug-19 Nov-19 Feb-20 Crude oil (US$/bbl) 29.6 -4.0 -56.3 -56.3 Hong Kong China Thermal coal (US$/tonne) 58.6 0.0 -12.6 -12.6 17 13 Iron ore (US$/tonne) 86.7 -0.2 -5.3 -5.3 Copper (US$/tonne) 5,231.0 0.1 -15.0 -15.0 15 12 Nickel (US$/tonne) 12,188.0 -0.5 -12.9 -12.9 Tin (US$/tonne) 15,400.0 0.7 -8.6 -8.6 13 11 Gold (US$/ozt) 1,695.3 -0.9 11.6 11.6 Palm oil (INR/tonne) 689.8 1.0 -20.7 -20.7 11 10 Soybean oil (c/lb) 25.1 -0.2 -26.9 -26.9 May-19 Aug-19 Nov-19 Feb-20 May-19 Aug-19 Nov-19 Feb-20 Corn (US$/bu) 3.1 0.1 -22.3 -22.3 Wheat (US$/bu) 5.2 -0.9 -6.1 -6.1 Source: FactSet, Mirae Asset Daewoo Research (updated on 5/12/20 at 23:00 KST) NCsoft (036570 KS) Our top global gaming pick for 2020-21; Raise TP Game 1Q20 review: Earnings fall short of our expectations Results Comment For 1Q20, NCsoft reported revenue of W731.1bn (+104% YoY) and operating profit of May 13, 2020 W241.4bn (+204% YoY).