Table of Contents
From cyclicality to diversity ............................................................. 3
Export recovery dominates most of 2009 but… .......................................................................3
The rest of 2009 and 1H10 - the next driving themes to play ...................................................4
Positioning for sustainable China consumption growth................ 7
China consumption growth – Decadal growth story for Korean equity market.........................7
Confectionary...........................................................................................................................9
Home shopping – Emerging China business ..........................................................................11
Automobile - China car ownership likely to quadruple by 2020 ..............................................12
3G Phone – Just beginning .....................................................................................................14
Accumulate LCD in 4Q09 ahead of trough in 1Q10 ...................... 16
Move into LCD players in late 4Q09 in anticipation of trough in early 1H10...........................16
Positioning in stocks to play commodity inflation ....................... 18
Inflationary commodity environment = overseas engineering order pick-up ..........................18
Leading steel names to more than hedge the inflation...........................................................19
Select banks with consistent QoQ growth ................................... 21
Banks – ongoing QoQ earnings improvement expected with no dip in 4Q09 ........................21
Shinhan FG is our top pick in bank sector ...............................................................................21
Insurance – strong candidate for solid earnings growth .........................................................23
Dongbu Insurance is our top pick ...........................................................................................23
Deutsche Bank 12 Portfolio ............................................................ 25
Valuation .......................................................................................... 28
Valuations do not look stretched – appealing relative to other Asian countries ......................28