花旗——韩国银行业研究 04.16

16 April 2007 | 10 pages

Korean Banks Feedback From Recent Marketing Trip: Investor Views and FAQs

 Overweight position — We met around 35 investor institutions in Asia over the
last two weeks. Most investors are already overweight Korean banks and are
likely to maintain their current exposure to the sector due to earnings visibility
and reasonable valuations. But they see the current growth momentum as
unexciting (domestic clients are neutral, while foreigners are overweight).
 Look for deep value — Half of the investors we met agreed with our
recommended deep-value names, expecting them to outperform the leading
banks. The other half are still willing to stick with the leading banks in a tough
operating environment.
 Positive 2H07E outlook — Investors were in general positive on the 2H07 macro
outlook based on the presidential election at end-2007 and a gradual pickup in
domestic consumption. Some were worried about a US slowdown, though.
 Premium for good management record — We found investors according high
value to good management records given the uncertain operational environment.
Shinhan FG and Daegu Bank were highlighted